Operational Audits are designed to assess a Third Party Administrator’s or Managing General Underwriter’s ability to fulfill the service, fiduciary, reporting and management requirements of successful plan administration.
In an Operational Audit, an on-site review follows the completion of a detailed questionnaire. Interviews are conducted with key personnel within the organization. Internal controls and procedures are documented. The IR&AS staff evaluates and/or tests all appropriate departments for:
- Management qualifications and policy
- Procedures and Controls
- Agreement and Statutory Compliance
- Underwriting, Claims and Administrative competency
- System and Reporting capabilities
- Reserving Methodologies
Our comprehensive appraisal also includes a review of banking and financial procedures to determine whether the proper controls are in place and to ensure security.
Operational Audits are essential to discern the integrity of the organizations with which you conduct business. They should be completed when contemplating a move to a new administrator and to assess the accuracy and effectiveness of organizations with which you enjoy on-going relationships. Those benefiting from Operational Audits include reinsurance and insurance companies, MGUs, TPAs, and those insurance entities desiring an independent evaluation of their own organization.