INCREASE OF INTERNAL CONTROLS IN INSURANCE COMPANIES
Insurance companies and banks are increasingly subject to requirements of performing and documenting internal controls. These requirements derive from the likes of the European Solvency II Directive on insurance regulation as well as Basel III that strengthens regulation and supervision in the banking sector. These internal controls should document the relation between risks and controls, support management’s monitoring of processes and controls, and are used by internal as well as external audit functions. Together with other reporting demands, the control demands pose a challenge in relation to optimizing a company’s resources.
Internal controls can provide assurance of effectiveness and efficiency of operations, as well as reliability of financial and non-financial information. Furthermore, internal controls can provide companies with adequate control of risks and ensure compliance with laws and regulations. Internal controls can be seen as an opportunity for entities to improve their overall performance and prove stability and accountability to stakeholders. Internal controls must ensure that the information in accounts and reports, prepared by various departments of a company, is complete, correct and on time.
To perform and document internal controls, a regional Danish insurance company has implemented Impero. Key controls have been mapped in Impero’s risk map and, in this way, the insurance company can ensure compliance in relation to both internal and external requirements. With Impero, the insurance company can ensure that all risks are linked to a control and document that all demands by internal and external assurance providers are followed. Compliance thereby becomes an enabler of risk reduction and not a time-consuming add-on to existing processes.
Impero offers an intuitive cloud-based compliance solution. Impero’s solution has a unique and light-weight approach that helps companies achieve compliance through internal controls. Click here to learn more about Impero and internal controls.