Insurance Regulators
We leverage our extensive regulatory expertise, unwavering integrity and commitment to continuous improvement and innovation – enabling us to pass accreditation reviews successfully and serve state insurance departments and regulators.
Insurance Regulators
Baker Tilly’s insurance industry regulatory services specialists have been involved in the examinations of life, health and property/casualty insurers of all sizes for more than 25 years. Our regulatory services include risk-focused financial examinations, actuarial and IT examinations and financial analysis projects, administrative supervision, rehabilitation and liquidation assignments.
Now more than ever, innovative approaches, depth of specialists and a trusted team are needed to deliver results. Our team of specialists have experience in both auditing and examining insurance organizations and can assist your organization in all phases of its journey.
Experience and specialization
Contemporary regulatory standards require insurers to develop and continually challenge their risk assessment and management programs. In turn, insurance regulators need experienced, hands-on assistance in evaluating an increasingly complex array of programs and their effectiveness. When financial stress overcomes an insurer’s ability to maintain its financial soundness, more urgent needs arise. Regulators must evaluate root causes and provide proactive oversight, which can include development, approval and implementation of remediation, rehabilitation plans or liquidation.
Explore our services:
Financial examination support
State insurance departments must continuously evolve their approach to performing risk-focused examinations. Our insurance specialists have extensive experience in implementing the latest risk-focused methodologies in the field and providing on-site training and support. In today’s regulatory environment, examinations must focus not only on current risks but also on prospective risks, including the impact of technology and artificial intelligence (AI) on an insurer’s strategy and solvency.
- Risk-focused advisory services
- Financial examination services
- Actuarial support
- Training (e.g., regarding financial analysis, risk assessment, ORSA, risk-focused exam approach)
- Investment and derivatives specialist services
- Capital market transactional reviews and analysis
- Enterprise risk management (ERM) and own risk and solvency assessment (ORSA) evaluation
- Corporate governance assessment
- Captive insurer and risk retention group specialist services
Market conduct examinations
Our team is dedicated to conducting impartial market conduct analyses and examinations to identify potential consumer hard and regulatory violations for state insurance departments. We offer a range of services and specialize in examining a diverse range of business lines, ensuring comprehensive oversight and regulatory compliance.
- Targeted and comprehensive examinations
- Single and multi-state examinations
- Market regulation program development
- Market regulation consultation
- Market analysis including Level 1, Level 2 and Market Conduct Annual Statement (MCAS) reviews
- Data analysis
Information technology support and cybersecurity assessments
Technology risks are increasing and changing at a rapid pace and regulators must keep up wither these new threats to the insurance industry. Our skilled team of professionals includes CISAs an Certified Information System Security Professionals (CISSPs) with extensive experience in performing Exhibit C reviews, cybersecurity assessments and breach management, HIPAA assessments, and privacy, security and control assessments related to compliance with applicable laws and regulations for insurance organizations.
- Outsourced IT examinations – full scope, cyber and targeted
- IT examination risk assessment – co-sourced with state for execution
- IT examination advisory – pre-exam consultations
- ERM and corporate governance assessments
- Cybersecurity risk assessments and gap analysis
- NAIC cybersecurity examination preparedness
- Department IT/cybersecurity training
- External/internal network security testing
- Network and firewall architecture reviews
- Application security testing
- Wireless and mobile security reviews
- Payment card industry (PCI) compliance readiness
- Phishing and social engineering risk assessment and testing
Financial analysis
State insurance regulators analyze financial information from insurers in a variety of settings. Our insurance specialists are adept at researching and analyzing business matters and developing insights to support risk assessment and decision-making for supervisory reviews.
- Routine or special assignments, including examination assistance
- Admissions
- Troubled companies
- Holding company filings
- ERM and ORSA analysis
- Investment risk management analysis
- Evaluation of financial forecasts and projections
- Evaluation of risk-based capital recovery plans
- Evaluation of Form A, D, F and other regulatory submissions
- Reinsurance treaty review
- Claim management and contract disputes
- Damage analysis
- Litigation and dispute resolution support
- Agency/MGA/TPA investigations
Investment services
Baker Tilly has extensive experience with valuation and impairment issues involved with less liquid securities, and our depth of experience enables us to assess market risk, credit risk and operational risk to most appropriately design examination testing procedures. In addition, we have extensive financial and business knowledge to understand and evaluate contract terms that may be involved in custody agreements, securities lending agreements, private placement offering terms, investment advisory agreements, repurchase agreements and derivatives terms. Baker Tilly has the experience and capability to assist in the review, analysis and evaluation of some of the most complex aspects of an insurer’s investment products, portfolio strategies, asset-liability matching, derivatives use and related hedging programs, portfolio management agreements, enterprise risk and governance, securities lending, funding agreement arrangements and collateral management.
- Evaluation of proposed transactions, unique and/or complex
- Review, analysis and evaluation of investment products, portfolio strategies, asset-liability matching, derivatives use and related hedging programs
- Portfolio management agreement review
- Enterprise risk and governance
- Securities lending
- Funding agreement arrangements
- Collateral management
Actuarial exam support
Baker Tilly brings in-house expertise in property/casualty, life and health insurance, and is thoroughly familiar with the risk-focused examination process. Our team includes credentialed actuaries with the Fellow of the Casualty Actuarial Society (FCAS) and Fellow of the Society of Actuaries (FSA) designations. Additionally, we have strong relationships with other actuarial firms to supplement our services as necessary, ensuring comprehensive and robust support for your actuarial examination needs
Artificial intelligence and governance specialists
Our team brings specific consulting expertise to assess artificial intelligence (AI) governance frameworks, policies and risks. Combining AI governance principles with robust data governance strategies, we ensure organizations strike the right balance between innovation and compliance while considering transparency, accountability, and ethical practices in both AI and data management. From a regulator’s perspective, we help assess policies and procedures to manage the internal and external risk environment associated with AI while reviewing established internal controls to monitor and protect exposure at an organization. Our subject matter professionals have expertise in model risk and validation, Microsoft Azure, Amazon AWS Cloud and other enterprise environments.
2024 SOFE CDS insights
At the recent 2024 Society of Financial Examiner’s (SOFE) Career Development Seminar, several of our insurance industry specialists hosted sessions on topics ranging from Model Audit Rule (MAR) implementation and optimization to third party risk management, artificial intelligence (AI) and exploring ChatGPT. Follow the link below and you will find a breakdown of our key takeaways from each of the Baker Tilly-hosted sessions. If you have any questions or comments on these session insights, contact a specialist.
Our professionals
Our services
Actuarial Services
Baker Tilly’s actuarial professionals help state regulators, insurance organizations, manufacturers and healthcare providers understand their financial risk.
Cybersecurity
Proactively protect and address your cybersecurity and information technology (IT) risks.
Data Solutions
Capturing, understanding and leveraging the data that matters most and bringing it into focus is no trivial matter. Rely on our experience to drive your business forward.
Examination Readiness Services
Insurance companies need exam readiness support and assessment to understand how to prepare for an upcoming examination.
Fraud & Forensic Investigations
Identifying, quantifying, and mitigating the risks, costs, and effects of fraud, abuse, and corruption.
Artificial Intelligence
Create dynamic environments, elevate your employees and drive creativity with Baker Tilly’s artificial intelligence consulting services
Guiding insights
Various states push momentum towards regulating insurer's use of artificial intelligence
With more and more insurers embracing new technologies and data analysis tools, states are starting to release new regulations to govern the use of AI and machine learning
Multinational organization seeks complex information technology and cybersecurity review
State regulators perform group-coordinated examination with three separate IT environments
State insurance department seeks actuarial examination assistance and reinsurance, reserve and pricing risk analysis
State insurance department required actuarial expertise to supplement an ongoing financial exam
State insurance department needs assistance with risk-focused examination subject to NAIC accreditation review
This case study reviews a group-coordinated, risk-focused exam required various specialists with cyber, investment, reinsurance and actuarial expertise
The regulatory implications of AI and ML for the insurance industry
With the exponential growth of artificial intelligence (AI) insurance regulators are faced with the daunting task of ensuring these systems comply with incoming regulations. Read our latest article to learn more about the new NAIC guidelines and how your organization can start developing an AI governance framework.
NAIC survey reveals continued growth of AI within life insurance industry
At its recent big data and artificial intelligence meeting, the NAIC discussed growing trends in life insurance.
By the numbers
6th largest
health insurance auditor (A.M. Best 2023)
12th largest
P&C insurance auditor (A.M. Best 2023)
Top 25 largest
life insurance auditor (A.M. Best 2023)
Let’s explore what’s possible, together
Our regulatory and financial services practice includes Certified Financial Examiners (CFEs), Certified Information System Auditors (CISAs), Certified Public Accountants (CPAs), Associates in Risk Management (ARMs), Market Conduct Management (MCM), Certified Fraud Examiners (CFE Fraud), Chartered Financial Analysts (CFAs) and individuals with deep expertise in conducting coordinated examinations of large insurance organizations with multiple departments participating. Schedule a 30-minute introductory meeting with one of our specialists.
© 2024 Baker Tilly US, LLP