The Institute of Internal Auditors (IIA) in Australia has published a new whitepaper that provides a basis for internal auditors, boards, audit committees, and risk and insurance managers to evaluate the quality and completeness of insurable risk reporting for their organisation.
It proposes five fundamental questions for audit committees to consider which form the basis of five recommended actionable steps:
› Does the organisation have an appropriate corporate policy framework in place for insurances?
› Does the organisation have the right level of insurance coverage in terms of insurable risks (breadth) and the values that they are insured for?
› Is insurance cover held with insurance companies with the capacity to pay (creditworthiness) in the event of a claim?
› Are there any particular conditions of the insurance policies that need to be managed?
› Is the management of claims efficient, effective, and does it represent value-for-money?
The whitepaper is available at the IIA website and is relevant for entities across the public, private and not-for-profit sectors.