The insurance audit is a process typical to the insurance industry. As your business operations change, so may your insurance premium. The need for Insurance audits arises because many insurance policies are based on estimation when underwritten. These policy types provide for an adjustment of the premium according to the exposures incurred during the policy term.
The aggregate holdings of the equity shares by a foreign company either by itself or through its subsidiary companies or nominees must not exceed twenty-six percent of the paid-up equity capital of such insurance company. The primary object of an USA Insurance Company is to carry on life insurance business or general insurance business or reinsurance business.
The Insurance auditors while conducting insurance audits shall examine the policy and liability procedures, tax documents, risk valuation and other financial records of insurance. This is done to ensure that proper insurance rates and premiums are implemented, and the insurance companies follow regulator laws. Some of the core areas to verify during insurance audits are claims and commissions. Further, the insurance auditors must also maintain the quality control between the insurance companies and policyholders.