What Does an Insurance Auditor Do?

Insurance audit is the review and inspection of various insurance businesses and their results operated by insurance companies. The main contents are auditing of insurance business, auditing of insurance contracts, auditing of insurance claims, auditing of insurance claims discipline, auditing of insurance rates, and auditing of "three fees". Specifically include: (1) Whether the insurance clauses formulated by the insurance company are legal and complete, whether the insurance liability is clear, and the rights and obligations of the insured are clear. (2) Whether the insurance company has actively, promptly, accurately and reasonably fulfilled its financial compensation obligations to the insured in accordance with the insurance contract. (3) Whether the claimants strictly complied with the claims discipline and whether the disposal of surplus materials complied with the prescribed procedures. (4) Whether the establishment of insurance premium rate is reasonable, whether it is used correctly, and whether there is any case of arbitrarily increasing the premium rate and damaging the interests of the insured. (5) Whether the handling fees, publicity fees and disaster prevention subsidies paid by insurance companies to carry out insurance business are in accordance with the prescribed scope of use and extraction methods, and whether they have been diverted to other purposes. (6) Whether the financial statements, accounting books and vouchers of the insurance company are true and correct. Whether costs and expenses are reasonable and legal. (7) Plans and implementation of various insurance premiums. ^[1]

Insurance audit

Right!

Insurance audit is the review and inspection of various insurance businesses and their results operated by insurance companies. The main contents are auditing of insurance business, auditing of insurance contracts, auditing of insurance claims, auditing of insurance claims discipline, auditing of insurance rates, and auditing of "three fees". Specifically include: (1) Whether the insurance clauses formulated by the insurance company are legal and complete, whether the insurance liability is clear, and the rights and obligations of the insured are clear. (2) Whether the insurance company has actively, promptly, accurately and reasonably fulfilled its financial compensation obligations to the insured in accordance with the insurance contract. (3) Whether the claimants strictly complied with the claims discipline and whether the disposal of surplus materials complied with the prescribed procedures. (4) Whether the establishment of insurance premium rate is reasonable, whether it is used correctly, and whether there is any case of arbitrarily increasing the premium rate and damaging the interests of the insured. (5) Whether the handling fees, publicity fees and disaster prevention subsidies paid by insurance companies to carry out insurance business are in accordance with the prescribed scope of use and extraction methods, and whether they have been diverted to other purposes. (6) Whether the financial statements, accounting books and vouchers of the insurance company are true and correct. Whether costs and expenses are reasonable and legal. (7) Plans and implementation of various insurance premiums. ^[1]

Chinese name

Insurance audit

Foreign name

Travel to watch industry

Geolocation

West Exit of Nanheng Street outside Xuanwumen

climate type

Warm temperate semi-humid climate zone

text

The full-time personnel of Chinese insurance companies shall supervise and verify the accounting information of their own units and their subordinate units and the corresponding business and financial activities they reflect.

Content Examine whether the insurance industry, disaster prevention, and claims work are "legal", "reasonable", "real", and effective. Industry development, disaster prevention, and claims must be carried out in earnest to implement the relevant national policies and laws, regulations and insurance contract provisions. It is necessary not only to improve the economic benefits of insurance companies, but also to give full play to the positive role of insurance in promoting production and ensuring the stability of people's lives. Examine whether financial revenues and expenditures and various economic activities are "correct", "real" and "legal". Find out whether the economic activities reflected in various vouchers, accounts, statements, etc. are false, untruthful, fraudulent, or extravagant. Make recommendations based on actual conditions to improve the management of the insurance industry. Examine whether to make good use of working capital. The working capital of an insurance company is an insurance fund that guarantees it to perform its compensation function. It must account for a considerable proportion of the total funds of insurance companies. Only by well-managed and well-used working capital and marketable securities can the normal operation of insurance companies' operations be guaranteed. Perform audit supervision on fixed asset management. Through comprehensive accounting and supervision of fixed assets, avoid losses on state-owned assets, improve management, and increase the economic benefits of insurance companies. Audit supervision of special funds. Special funds for insurance companies include various business reserves and special funds under retained profits. The management and use of various special funds is conducive to the correct handling of the economic interest relationship between the insurer and the insured, and the stability of the insurance business; it is conducive to the correct handling of the economic interest relationship between the state, enterprises and individuals; Mobilize the enthusiasm of employees and promote the healthy development of insurance. Auditing and supervising the solvency of insurance companies. An insurance company must have sufficient solvency to assume its compensation obligations. Supervise and inspect the soundness, effectiveness and implementation of the internal control system.

According to act in accordance with the law, the audit work must be carried out in accordance with the "Audit Regulations of the People's Republic of China" and "The Provisions of the Audit Office on Internal Audit Work"; Internal control system; adhere to the principle of seeking truth from facts, based on facts.

Organization and authority The People's Insurance Company of China has set up an insurance audit institution separately and established its own system. The head office has an audit department, each province, autonomous region, municipality directly under the Central Government, and cities with separate plans has audit offices, prefecture, city, state, and alliance companies have audit departments, and county (banner) branches have full-time auditors. The head office implements the general audit responsibility system under the leadership of the general manager. Insurance audit institutions at all levels also receive business guidance from the national audit institutions at the same level and the audit department of the People's Bank of China.

Auditor's authority Check accounting vouchers, accounts, statements, final accounts, funds, property, and consult relevant documents and materials; Investigate and obtain evidence of problems found in the audit to relevant units and personnel; put forward opinions on handling illegal events , Put forward opinions on major cases; put forward suggestions to improve management and improve efficiency.