Article
Model Audit Rule program - reload your program and get ready to add value
April 14, 2021 · Authored by John Romano, Rachel Schmoyer
The below article outlines several steps your insurance organization can take to revitalize its Model Audit Rule (MAR) program. For a more in-depth look into MAR, and to learn more about our MAR approach, check out our MAR webpage.
The National Association of Insurance Commissioners' (NAIC) Annual Financial Reporting Model Regulation 205 Section 17 Management’s Report of Internal Control over Financial Reporting – Annual Attestation on Internal Control , commonly known as “MAR” mandates that every insurer having annual, direct-written and assumed premiums of $500 million or more shall prepare a report, for the prior calendar year’s year-end, attesting to the insurer’s, or the insurer group’s, internal controls over financial reporting (ICOFR).
We refer to an insurance company’s processes to fulfill the requirement indicated above as a “MAR program.”
Take the time to revisit your MAR program; the results are in the numbers
With focus on the current state of the MAR program, alignment of goals, resources and accountability, and application of current trends and practices, Baker Tilly recently helped a client experience the following:
Define what you want from your MAR program and map your priorities and resources accordingly
Insurance organizations face many challenges with how to implement and continue their MAR program efficiently and effectively. This is primarily due to lack of definition of what they want as a result of the time and effort from their team members and providers. Where do you currently fall on the spectrum compliance to value? Where would you like to be?
