Sie sind auf Seite 1von 5

INSURANCE AUDIT PROGRAMME submitted 9/23/99 by graeme_szetu@ahl.com.

au Risk Management Objective The purpose of risk management is to reduce the group's exposure to financial liability as the result of accidental losses or other events causing potential or actual liabilities. Insurance is a subset of risk management, and used as a tool to manage specific risks. Audit Objectives a) To assess the effectiveness of the risk management process b) To ensure that all divisions adequately cover the insurable risks in their respective business units c) To determine whether the insurance coverage is cost-effective d) To ensure that the procedures for reporting incidents and making claims are adequate and appropriate e) To determine whether uninsured risks should be insured Scope A Review of the risks identified in divisional strategic planning B Review of risk management in the group C Review of insurance policies and contracts D Review of insurance costs and premiums E Review of incidents and claims procedures F Review of uninsured risks A. Risks Identified in Divisional Strategic Planning Audit objectives: to ensure that all risks and their corresponding impact have been properly identified, and that action plans have been appropriately formulated. 1. Examine the process management undertakes to identify and assess risks 2. Review the risks identified by divisions and determine whether all risks have been identified 3. Review the operational and financial impact of each risk and determine whether action plans to manage risks are appropriate B. Risk Management Audit objectives: to review the risk management process and procedures to ensure that risks are properly identified and assessed, and action plans correctly formulated. Risks generally fall into the following broad categories: 1 Property risks 2 Liability risks

3 Employee risks 4 Operational risks * Determine the officers responsible for risk management * Review the procedures for managing risk in terms of: - identification of potential claims (and future projections) - purchase of appropriate coverage - other action programs instituted to decrease losses/risk - review of uninsured risks (and exposre to potential claims and deductions) - approval of the risk management policies and procedures manual * Review strategies used to manage risks: - Aviod (ie. other alternatives) - Acccept (ie. after they are minimised) - Diversify (ie. other business activities) - Share/transfer (ie. through contracts such as insurance and joint venture partners) B. Review of Insurance Policies and Contracts Audit objective: to ensure that insurance policies are costeffective in terms of adequately covering the groups exposure to specifically identified risks. 1) Information required Obtain the schedule of insurance that summarises all policies. The schedule should contain the following information: - Policy period/Insurers - Nature of coverage, type, and description - Premiums to be paid - Amount of coverage and applicable limits - Deductibles 2) Description of the business Audit objective: to ensure that the description of the business is appropriate for insurance purposes. Insurance premiums are determined in part by industry classification. Review the current description of the business to determine whether it is appropriate given the current activities and structure of the business. 3) Review of insured risks Audit objective: to ensure that the group has adequate insurance cover over significant risks. Review the schedule of insured risks to ensure that all divisions are adequately covering all risks on a cost-effective basis. This can be achieved by comparing insurance coverage from prior years as

well as reviewing loss/claim histories. 4) Annual declarations for premium renewal and adjustment purposes Audit objective: to ensure that the relevant insurance company is advised of any material changes in business activities or insurable items during the year that will effect insurance coverage. Obtain memos and schedules that have been supplied to insurance companies on renewal of policies. Specific policies require annual declarations for premium renewal. For example, payroll records are externally audited for Workers Compensation purposes. Review all declarations made when the contracts of insurance are renewed and during the course of the year. C. Review of Uninsured Risks Audit objective: to determine whether the group should insure some of the risks that are currently uninsured. Review the list of uninsured risks and determine whether it is complete (prior year schedules may be useful for this purpose). Review action plans formulated to manage these risks, and assess whether they are apprpriate. Determine whether the group should be insuring for any of these risks. D. Review of Insurance Costs and Premiums Objective: to determine whether costs and premiums for insurance can be reduced. Obtain the schedule of insurance premiums by division over the last three years. Investigate the reasons for changes in premium costs as to whether they have occurred because of industry factors (uncontrollable) or company factors (controllable). In the case of company factors, consider whether there are any remedial actions available that can be implemented by management to reduce the level of incidence. E. Review of Incidents and Claims Procedures Audit objective: to ensure that all incidents are reported properly, and that claims procedures are being followed correctly. Review the procedures over the reporting of incidents and the

procedures for making claims. For example, consider the following categories of claims: 1) Workers compensation claims Obtain the schedule of workers compensation claims. Review the list of current employees who are currently under workers compensation. Consider whether there are any remedial actions available that can be implemented by management to reduce the level of incidence. - OH&S issues - OH&S audits - Establish an OH&S committee - Change in work practices - Independent advice 2) Motor vehicle accident claims Obtain the schedule of motor vehicle accident claims. Review the policies and procedures for motor vehicle accident claims. Consider whether there are any remedial actions available that can be implemented by management to reduce the level of incidence. - Advanced driving courses - Accident reporting procedures - Police involvement 3) Property loss or damage Obtain the schedule of property damage claims. Review the policies and procedures for property damage claims. Consider whether there are any remedial actions available that can be implemented by management to reduce the level of incidence. 4) Theft or misappropriation claims Obtain the schedule of theft or misappropriation claims. Review the policies and procedures for theft or misappropriation claims. Ensure that where perpetrators can be properly identified that all thefts or misappropriation are reported to the police. Consider whether there are any remedial actions available that can be implemented by management to reduce the level of incidence. - Increased physical security (incidents versus cost) - Increased internal controls (eg. Management review, reporting,

independent review, systems) - Computer security and back up January 1999

Das könnte Ihnen auch gefallen