Insurance audit services
Audit and assurance built for insurance companies and brokers
Insurance companies, brokers, and corporate agents operate under IRDAI regulation and face a compliance framework that covers premium accounting, claims provisioning, reinsurance treaties, investment portfolio reporting, and specific solvency margin requirements. A standard commercial audit does not address these insurance-specific accounting requirements, which is why specialist insurance audit services are necessary for entities in this sector.
Cred Books provides insurance audit services for general insurance companies, life insurance businesses, insurance brokers, and third-party administrators. Our team understands premium revenue recognition, claims outstanding provisioning, reinsurance recoverable accounting, and the specific financial reporting requirements of IRDAI regulation. Our audit confirms that your financial statements are accurate and that your IRDAI compliance obligations are met.
What does an insurance audit actually cover?
An insurance company audit covers gross written premium verification against policy registers, claims paid and outstanding provision verification, reinsurance ceded premium and recoverable reconciliation, investment portfolio valuation and compliance with IRDAI investment regulations, solvency margin calculation, underwriting expense ratio analysis, and TDS on commission payments to agents. For insurance brokers, we cover brokerage income recognition, client premium custody account management, and broker licence compliance.
Our audit also covers GST on insurance services, including the specific treatment of life insurance premiums, general insurance policies, and reinsurance transactions under the GST framework. Premium reconciliation across your core insurance system is a standard part of our engagement.
Why insurance companies need specialist audit services
IRDAI Financial Reporting Requirements
IRDAI requires insurance companies to prepare financial statements in a prescribed format with specific disclosures covering solvency, investment, and underwriting performance. Our audit confirms these regulatory financial statements are accurate and compliant.
Claims Provisioning Accuracy
Outstanding claims and incurred but not reported reserves are among the most significant liabilities on an insurer's balance sheet. Our audit verifies that provisioning is adequate, consistently calculated, and supported by the actuarial basis where required.
Premium Reconciliation And Revenue Accuracy
Gross written premium must reconcile from the policy management system through to the financial accounts. Discrepancies between policy register totals and accounting entries are common and material in insurance businesses without specialist audit procedures.
Our insurance audit and assurance services
Insurance Company Statutory Audit
Companies Act statutory audit for insurance companies with IRDAI-prescribed financial statement format, solvency margin disclosure, and investment schedule verification.
IRDAI Compliance Audit
Compliance verification against IRDAI regulations covering investment limits, solvency margin maintenance, management expense ratio, and agent commission payment rules.
Insurance Broker Audit
Annual audit for IRDAI-licensed insurance brokers covering brokerage income recognition, client premium account management, and broker licence financial condition verification.
Premium Audit Services
Policy register to accounting reconciliation, mid-term adjustment verification, endorsement processing accuracy, and gross written premium substantiation across all lines of business.
Insurance Internal Audit
Risk-based internal audit for insurance companies covering underwriting controls, claims processing integrity, agent commission payment accuracy, and investment compliance.
Reinsurance Audit
Reinsurance ceded premium calculation, recoverable verification against treaty terms, claims ceded reconciliation, and reinsurer balance confirmation for general and life insurance companies.
Insurance audit compliance areas we cover
Insurance Company Audit
Statutory audit under Companies Act with IRDAI prescribed format, covering solvency, investments, and underwriting performance.
IRDAI Compliance Audit
Regulatory compliance verification covering investment limits, management expenses, agent commission caps, and solvency margin conditions.
Insurance Broker Audit
Annual audit for licensed insurance brokers covering brokerage recognition, client premium custody, and net worth verification.
Premium Audit Services
Gross written premium reconciliation from policy system to accounting, endorsement accuracy, and mid-term adjustment verification.
Insurance Statutory Audit
Full statutory audit with IRDAI financial statement format and required disclosures on technical reserves and investment schedule.
Reinsurance Audit
Treaty-level reinsurance ceded premium verification, claims recoverable confirmation, and reinsurer balance reconciliation.
Life Insurance Audit
Life fund segregation, actuarial liability verification, premium income recognition, and surrender value liability accuracy.
General Insurance Audit
General insurance statutory audit covering motor, health, fire, and marine lines. Claims outstanding provision review and underwriting ratio analysis.
Insurance Internal Audit
Risk-based internal audit covering underwriting controls, claims processing integrity, commission payment accuracy, and IT system controls.
Insurance audit services: what to expect from Cred Books
Premium Register And System Reconciliation
We reconcile policy system gross written premium totals against accounting entries by line of business, verifying that all policies are captured and that mid-term adjustments and cancellations are correctly reflected.
Claims And Reserve Adequacy Review
Claims paid and outstanding are verified against claim files. The basis for IBNR reserves is reviewed for consistency with prior years and with the actuarial assessment where available.
Investment Portfolio Compliance Verification
Investment holdings are verified against IRDAI prescribed limits by category and asset class. Market values are confirmed and the investment schedule is prepared in the regulatory format.
Solvency Margin Calculation Review
Solvency margin is recalculated using audited balance sheet figures and compared to the IRDAI required minimum. Any deficiency is flagged and reported to management before the financial statements are finalised.
Software We Work With
Why insurance companies choose Cred Books for audit services
Insurance-Specific Financial Knowledge
We understand the financial reporting requirements specific to insurance, including technical reserves, reinsurance accounting, and the IRDAI prescribed financial statement format that general audit practitioners are not familiar with.
IRDAI Regulatory Expertise
Our team is familiar with IRDAI regulations on solvency, investments, management expenses, and agent commissions. Our audit confirms compliance before the regulator's inspection rather than after.
Premium System Integration
We work with policy management system data exports to reconcile premium at the policy level rather than relying only on accounting entries, which is the correct standard for insurance audit procedures.
Claims Reserve Review
Our claims reserve review uses both statistical and case-by-case methods to assess adequacy, giving the audit committee confidence that the financial statements are not materially misstated by under-provisioning.
GST On Insurance Services
GST treatment of insurance premiums, reinsurance, and brokerage is complex. Our team ensures GST invoicing is correct, GSTR filings are reconciled, and ITC on business inputs is correctly claimed.
Committed Reporting Timelines
We agree audit completion dates to align with IRDAI return filing deadlines and board reporting cycles. The audit report is delivered within the agreed timeline without exception.
How Our Insurance Audit Process Works
Engagement Planning And System Access
We review your lines of business, policy system, reinsurance treaties, and IRDAI registration before agreeing the audit scope and data requirements.
Data Collection And Premium Extraction
Policy register extracts, claims data, investment schedules, bank statements, and accounting records are collected and structured for reconciliation.
Fieldwork And Compliance Testing
Premium reconciliation, claims testing, reserve adequacy review, investment limit verification, and solvency margin calculation are completed during fieldwork.
Management And Audit Committee Reporting
Audit findings and key estimates are discussed with management and the audit committee before the final report is issued.
Audit Report And IRDAI Filings
The statutory audit report and IRDAI financial statements are completed within the regulatory filing deadline, along with any management letter points.
Frequently Asked Questions
Get expert insurance audit services from Cred Books
IRDAI compliance, statutory audits, premium reconciliation, claims reserve review, and internal audit for insurance companies and brokers across India. Talk to our team today.
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