Model Audit Rule
The National Association of Insurance Commissioners’ (NAIC) Annual Financial Reporting Model Regulation 205, commonly known as the Model Audit Rule (MAR), requires that life and annuity, property and casualty, title, health plans and other insurance organizations that exceed certain thresholds of direct and assumed written premiums adopt auditor independence, corporate governance and internal control over financial reporting standards. For many insurers, handling a MAR program can be a daunting task.
Even if your organization has not yet met the $500 million in direct written and assumed premiums threshold, understanding the controls and identifying potential weaknesses that may arise is crucial to ensure you are prepared for when the time comes to implement MAR. For insurers that have already met the threshold, you must remain compliant by reviewing your process annually to identify inefficiencies, improve overall effectiveness and revamp a stale program to ensure that key risks are addressed and the program is cost effective.
MAR can be a significant undertaking. In order to effectively take action, you have to identify the key material risks plaguing your organization, understand the controls to mitigate those risks and identify weaknesses — all while striving to remain compliant and ensure your program is effective and efficient. Our insurance and regulatory specialists are dedicated to the development, successful implementation, ongoing testing and maintenance of your MAR program. Our approach can be done on a stand-alone basis or integrated with a comprehensive internal audit strategy. We seek to ensure your program is up-to-date based on current regulatory requirements, efficient and cost-effective — allowing you to focus on the big picture and the road ahead.
Your business is our business — explore ways to address challenges related to MAR
You’ve determined that your organization needs to be MAR compliant in the future and you need to have a plan and cost-efficient approach in place to meet regulatory requirements.
You’ve identified your organization needs to be MAR compliant in the future and you want to maximize the value from your efforts to improve your processes and internal controls.
The steps outlined under the “prepare for compliance” tab plus:
Now that you have a solid MAR program, you want to optimize your approach to be innovative for efficiency and value.
Your organization is going public or private and you need assistance with the transition to or from Sarbanes-Oxley (SOX) compliance.
Our solution for organizations transitioning from private to public:
Our solution for organizations transitioning from public to private: