Internal Audit Research Of Insurance Companies

Since the establishment of the CIRC in 1998,the insurance industry in China has experienced more than 10 years' rapid development,many insurance group companies showing up.According to the survey,the insurance assets of China have exceeded 16 trillion Yuan so far.Involving huge amount of assets,profit model that profit made by taking risks as well,make insurance companies in a highly risky environment at every turn,and have to test and ensure the effectiveness of their internal controls regularly and comprehensively.As a formative procedure for independent evaluation of the company's internal control,it could be traced to the 1950 s that internal audit began to be explored internationally.In April 2007,the China Insurance Supervisory Commission issued the“Insurance companies internal audit guidelines(Trial)".Later in December 2015,in accordance with the current " Insurance Law of the People's Republic of China " and "Company Law of the People's Republic of China "," Audit law of the People's Republic of China " and other laws and regulations,"The Code of Internal audit of insurance Institutions" issued,providing a guidance for internal control evaluation and system optimization for insurance companies in China.This paper analyzes the existing audit procedures and effectiveness of insurance group companies based on the study of the internal audit cases of a insurance group.Wish to bring reference for the internal audit system optimization of insurance group companies,and play an exemplary role in the construction and improvement of internal audit system of other insurance groups,for responding to all-around regulatory scrutiny.The first chapter: the research background and significance of this paper.This chapter mainly explains the research background and significance of this paper,next summarizes the literature,and then expounds the research ideas of this paper,determines the research methods of this paper at last,summing up the full text.The second chapter: an overview of the basic theory of internal audit of insurance group company.Firstly this chapter lists the operating environment and operating characteristics of the insurance group,secondly it analyzes the differences between insurance groups and other enterprise.Later,this chapter defines the concept of internal audit,and then analyzes the function of internal audit and its relationship with external audit,expounds the relevant regime basis of internal audit of insurance group company.The third chapter: a practical operation case of internal audit for insurance group.This chapter describes the main situation of A insurance group company who has a feetof Fortune 500 list.This group company provides various product and service including risk protection,wealth planning and asset management around the main insurance business via its subsidiaries.In terms of organizational structure,A insurance group has five executive committees: strategy and investment decision-making committee,nomination remuneration committee,operation management committee,audit committee and risk management committee,under the premise that the board of directors and the board of supervisors performing their respective duties with due diligence.As an independent department,the group audit center of A insurance group is subordinate to the audit committee.The purpose of the group audit center is to optimize risk management and internal control as well as assist the enterprise to achieve its strategic goals through systematic and normative methods.In order to adapt to the development trend and improve the audit efficiency,A insurance group has formulated detailed procedures for the implementation of internal audit in accordance with its actual situation.The fourth chapter: analysis of problems and causes existing in internal audit of A insurance group.This chapter reveals four main problems of internal audit of A insurance group: lack of initiative in internal audit at one and two lines of defense,the internal auditors of the three lines of defense are likely to carry out negative audit procedures,the rectification rate of defects repeatedly found in internal audit is not high,defect is likely to occur at the business growth inflection point,internal audit investment is large.In view of these four main problems,it analyzes the following main reasons:employees at all levels have different perceptions of internal audit,lack of supervision and incentive for internal audit,internal audit defects lack of real-time tracking ways,a lot of audit evidence can only be obtained through on-site audit instead of online and cost a lot.The fifth chapter: suggestions on optimizing internal audit of A insurance group.Based on the analysis of the existing problems and causes of internal audit of A insurance group,this paper puts forward four suggestions: improve the internal audit culture and the participation mechanism of staff,improve the internal audit personnel management system and strengthen the continuation of education,optimize the whole process defect warning mechanism,reduce field audit and set up digital audit environment.