opennav

EisnerAmper Ireland | Insurance / Reinsurance Ireland

EisnerAmper Global

Insurance / Reinsurance

The implementation of Solvency II is leading many (re)insurers to consider how they can best demonstrate the manner in which they satisfy their regulatory requirements in a cost-efficient and compliant manner.

We provide a full range of audit, regulatory, advisory and risk management services to:

  • insurers and reinsurers operating in or through Ireland;
  • insurance regulatory bodies; and
  • RegTech and FinTech product developers.

Our team’s experience and skillsets help our clients meet their needs and support them in the successful achievement of their commercial goals.

Audit services
Audit services

Through our work with insurance companies and directors, we are familiar with the practical administrative, regulatory and internal control issues in providing audit services in a timely, accurate and professional manner. Our audit, undertaken in accordance with International Standards on Auditing, also takes into account industry best practice. We meet and achieve the standards required to support our audit opinion in a timely and efficient manner through:

  • Utilising an experienced team in providing audit services to insurance and reinsurance companies and insurance intermediaries supported by our in-house audit programme management software;
  • Performing detailed planning stage designed to identify the key risks to which your (re)insurance company may be exposed;
  • Analysing the controls in place to address those risks;
  • Evaluating the effectiveness of those controls; and
  • Reporting in a timely manner on the financial statements to those charged with governance and to the Central Bank on an entity’s Statement of Financial Condition Report.

Statutory Instrument 312 of 2016 designates the Irish Auditing and Accounting Supervisory Authority (“IAASA”) as the competent authority for the oversight of statutory auditors and audit firms.  As 1 of the 8 Public-Interest-Entity auditors registered with IAASA, we are well positioned to provide external audit services where auditor rotation is required.

Internal Audit
Internal Audit

Solvency II requires that a company appropriately implement key functions including Internal audit. In accordance with CBI guidance regulated insurance entities require at least that the internal audit function:

  • Establish, implement and maintain an audit plan setting out the audit work to be undertaken in the upcoming years, taking into account all activities and the complete system of governance of the undertaking;
  • Take a risk-based approach in deciding its priorities;
  • Report the audit plan to the board of directors of the undertaking;
  • Issue an internal audit report to the board of directors of the undertaking based on the result of work carried out in accordance with point a. which includes findings and recommendations to the board of directors of the undertaking including the envisaged period of time to remedy the shortcomings, enhance employee accountability and information on the achievement of audit recommendations;
  • Submit the internal audit report to the board of directors of the undertaking on at least an annual basis;
  • Verify compliance with the decisions taken by the board of directors of the undertaking on the basis of those recommendations in previous internal audit reports.

For a number of (re)insurance entities we provide internal audit services to meet the requirements of the CBI.  In performing our work we:

  • Work under the direction of the Audit Committee and will be accountable on a day to day basis to a designated member of management.
  • Liaise with an independent actuarial firm as required to provide any actuarial expertise required in delivering the internal audit services.
  • Conduct our internal audits in accordance with International Standards for the Professional Practice of Internal Auditing as issued by the International Internal Audit Standards Board and adopted by the Chartered Institute of Internal Auditors.

When required we can also provide a designated person to perform the PCF-13 role of Head of Internal Audit as required by the CBI’s Fitness & Probity standards.

Reg Advisory services across the (re)insurance business model
Reg Advisory services across the (re)insurance business model

European insurance regulators expect firms under their supervision to be able to demonstrate how they have satisfied their regulatory requirements. This puts an onus on firms to understand those requirements, react to them in practical terms by operationalising their systems of governance and to ensure they can evolve as requirements or the environment change.  This increased level of regulatory expectation will remain the norm for the foreseeable future.  The ability to address these challenges and turn them into business strengths and/or a competitive advantage is key to success in an increasingly regulated marketplace.  Demonstrating compliance with regulatory requirements involves a few layers:

  • Knowing what the requirements are;
  • Deciding how to incorporate them into the business (to the maximum extent possible);
  • Ensuring clear ownership of risks and limits at the different areas of the business;
  • Having a robust risk management framework to deliver it in an evidence-supported fashion; and
  • Operating it as intended.

We help insurers navigate these challenges by providing regulatory advice on how to address regulatory and compliance issues to meet evolving supervisory expectations in the following areas:

  • Develop effective compliance frameworks and functions, as well as supporting implementation;
  • Provide strategic advice regarding emerging financial and regulatory issues;
  • Review and support system of governance frameworks and board of directors’ oversight and decision processes (e.g. Risk Appetite, ORSA);
  • Strengthen processes, quality control & quality assurance mechanisms;
  • Advice on interaction with regulatory bodies;
  • Pre-inspection assessments;
  • Skilled Person reports;
  • Design and implementation of risk and compliance framework and policies; and
  • Development and implementation of Regtech solutions.
Compliance & Risk Management outsourced services
Compliance & Risk Management outsourced services

The regulatory focus on having effective and demonstrable risk management frameworks in operation is growing. There remains significant opportunities for (re)insurers and other financial institutions to strengthen their risk management processes and demonstrate compliance to Boards and regulatory stakeholders.  We help clients keep on top of emerging changes in regulation and developments in risk management practices across the market, and provide the following services on an outsourced basis:

  • Compliance function;
  • Risk management function;
  • Internal audit function;
  • Fulfilling Pre-Approval Controlled Function (“PCF”) roles.
Authorisation application support
Authorisation application support

By combining the EisnerAmper global network, our close working relationship with leading legal partners and financial services directors, and our proven approach to helping international groups set up operations in Ireland to access European markets, we advise insurance and reinsurance entities seeking to enter the Irish market, providing:

  • Advice on the regulations and (re)insurance laws that apply;
  • Input to and preparation of the (re)insurance licence authorisation application for submission to the Central Bank of Ireland;
  • Analysis of the Irish market – office space, product data, product design, pricing and product strategy and logistics; and
  • Support through all stages from early considerations to post-authorisation business as usual.
Services to Regulators
Services to Regulators
  • Advisory services to Regulators across the full regulatory cycle from setting the regulatory mandate, developing policies and procedures, establishing operational structures, through to the implementation of supervisory and enforcement objectives, including:
  • Development of policies & procedures;
  • Assessment of compliance with new regulatory requirements;
  • Assessment of compliance with supervisory core principles (IAIS, Basel, IOSCO, FATF);
  • Design, development & delivery of training solutions;
  • Conducting inspections on behalf of regulatory bodies; and
  • Development & implementation of RegTech solutions.
Sample engagements include:
Sample engagements include:
  • Regulatory Implementation Support – we assess compliance against regulatory requirements (e.g. Solvency II), identify areas for improvement, suggest recommendations, and, if requested, monitor implementation. We support Boards of Directors in their transition to meet evolving requirements.
  • Conducting pre-inspection assessments to minimise the level of disruption that can be brought about by the conduct of full risk assessments or thematic reviews by the Central Bank of Ireland. This provides firms the opportunity to demonstrate their proactive approach to risk management and control of their adaptation to a changing environment.
  • Advising and supporting firms dealing with regulators / regulatory concerns, implementing risk mitigation programmes and / or representing firms in enforcement/settlement negotiations or inspections. Our advice and pragmatic approach to problem solving can accelerate the timeline to return to normal business.
  • We partner with firms (e.g. actuarial, IT security, software developers) where synergies can be achieved to add value to our clients, whether that is through improving governance structures or processes, management information, or oversight and control methodologies.

David Montgomery

Head of Risk & Regulatory Advisory Partner

As Head of the Firm’s Risk & Regulatory Advisory team, David advises financial services providers on risk, regulatory and compliance-related matters.  David provides pre-inspection assessments, supports clients throughout the regulatory engagement cycle and specialises in the design and implementation of risk and compliance frameworks.

David was deputy Head of Risk in the Central Bank of Ireland.  During his 12 years with the Central Bank, David established inspection teams and methodologies to supervise insurance and reinsurance firms and  worked in banking sector regulation developing and implementing the Central Bank of Ireland’s regulatory risk appetite and risk assessment framework (PRISMTM).  The PRISM framework was first implemented for the banking and insurance sectors before being rolled out to cover MiFID firms, credit unions and funds service providers.  When the framework was adopted by the European Central Bank (“ECB”) for its Single Supervisory Mechanism (“SSM”), David provided input and guidance to the SSM during the development and implementation of their supervisory approach.

David was previously the Managing Director of a reinsurance firm providing proportional, non-proportional and facultative property and casualty cover.

Contact
6 The Courtyard Building
Carmanhall Road
Sandyford
Dublin 18, Ireland

Tel: +353 1 2933 459
L E

Our locations

Explore the EisnerAmper
Global Network. Our member
firms are strategically situated
across the globe.