Insurance

Comprehensive Audit and Assurance Services Crafted to Meet the Needs of Insurance Companies

We have built our insurance audit practice by developing a deep understanding and knowledge of statutory and U.S. GAAP insurance accounting standards and state-by-state regulations and have developed outstanding relationships with the NAIC and state regulators. We leverage our deep and unique industry knowledge, partnerships and participation with industry-leading organizations and associations, to provide an efficient and effective audit.

Our insurance industry experience includes audits with diverse insurance companies, including property and casualty sectors, health, life, and annuity, among others.

• Financial Statement Audits and Regulatory Compliance: We specialize in statutory audits of insurance carriers and have a deep understanding of the unique accounting and regulatory requirements insurance companies offering these lines of coverage must follow and comply with. We also perform U.S. GAAP basis audits of both private and publicly traded insurance companies.
• Integrated Audits, MAR Audits and SOC Examinations: Our insurance audit team has decades of experience performing Model Audit Rule (MAR) audits, Sarbanes-Oxley Act (SOX) Section 404 integrated audits as well as Systems and Organization Controls (SOC) Examinations (for ASO, ASC and other outsourced third-party processing performed by insureds and others) (SOC 1, 2, 3, Cybersecurity Examinations).
• Non-Attest Services on Accounting, Reporting and Compliance: For nonpublic insurance companies, we also provide non-attest services to assist companies that have the know-how but lack the time and availability to perform certain technical functions, such as developing white papers and accounting position papers to support accounting transactions (revenue accounting, reinsurance accounting, accounting positions on deferred policy application costs, etc.), drafting disclosures, assisting with deferred tax calculations (SSAP 100/ASC 720) and footnotes. In providing these services, we work with your management team to provide an extra set of hands in developing support and documentation so that your team has more time to review, understand and accept responsibility for these non-attest services.
• Statutory and U.S. GAAP Accounting, Preparation, Reporting and Auditing: Engage with our distinct SAP and GAAP accounting practices when your company prepares for its next audit. Our Insurance Services Team is prepared to provide you with the necessary support and solutions to navigate your next audit and tax cycle effectively.
• Self-funded Insurance Plan Audits: Identify opportunities and anticipate challenges successfully as you continue self-funding your insurance plans. We’ll step in to analyze your company’s self-funded insurance plans for any costly errors.
• Self-insured Reimbursement Audits: Trust our third-party administrator perspective when we offer an audit of your self-insured reimbursement materials. Our self-insured reimbursement audits include a comprehensive review of claims submitted by providers to identify any discrepancies, errors, or potential overpayments. Our experienced auditors meticulously examine claim documentation, coding accuracy, utilization patterns, and adherence to contractual agreements. By conducting thorough reviews, we can detect billing irregularities, fraud, waste, and abuse while also ensuring that payments are made correctly and in accordance with established guidelines.
• Insurance-specific Operating Processes and Systems Consulting: Operate at the highest level of efficiency with the help of our experienced and dedicated insurance services team. We are prepared to step in to make sure your services reach the quality threshold your company demands and deserve.

Leading Tax Services to Ensure Compliance and Maximize Returns for Insurance Companies

Whether it’s navigating compliance issues, or lessening tax burdens, Cherry Bekaert has extensive experience serving clients in the insurance industry. Our Insurance Tax Services Team is widely known for our superior services, having earned a reputation for providing sophisticated federal, state, local and international tax services. Because of our comprehensive knowledge of this highly regulated and complex industry, we understand the specialized tax needs of our clients. Our highly experienced professionals take an individualized approach to understanding insurance organizations, developing smart tax solutions and minimizing tax liabilities.

We handle tax preparation, compliance, and financial reporting, including uncertain tax position documentation and representation during audits. We offer expertise in IRS Private Letter Rulings, change of accounting methods, tax planning, and state tax analysis. Additionally, we assist with voluntary compliance programs and merger and acquisition planning. Our dedicated team ensures insurance companies receive proficient guidance for their financial needs.

• Unique Insurance Tax Matters
  • Deferred policy acquisition costs
  • Loss Reserve Discounting
  • Unearned premiums
  • AMR/IVR tax treatment
  • Dividend Received Deduction
  • NOL utilization
  • SSAP 101 non-admittance tests
  • ASC 740 valuation allowance process
  • Tax Provision Preparation and Review
• State and Local Tax (SALT): Trust our empirical, effective, and comprehensive approach to audit and tax services. We’ll make sure you’re totally prepared for your next internal or external audit, and we’ll also get you ready for a smooth and seamless tax season.
• Tax Compliance: Navigate tax compliance legislation through our comprehensive, prescriptive framework. We are intimately familiar with the penalties for breaking compliance regulations, and we’ll make sure you stay in the clear.
• Tax Controversy: Settle tax disputes soundly to keep your business moving forward. We represent insurance companies in all aspects of tax controversies, including audits, appeals, and litigation before the IRS and state tax authorities. Our proactive approach involves conducting thorough reviews of company operations and financial records to identify potential tax risks and develop effective strategies to address them.
• Tax Planning and Research: Trust our empirical, effective, and comprehensive approach to auto tax planning and research services. We’ll make sure you’re totally prepared for your next internal or external audit, and we’ll also get you ready for a smooth and seamless tax season.
• Accounting Assistance: Balance your books the right way at the right time. Cherry Bekaert’s Accounting Services Team will provide flexible, cost-effective accounting solutions that help you maximize internal resources and streamline business management.

Full Suite of Advisory Services to Support Our Insurance Industry Clients

As accountants and business professionals, we know that your needs extend beyond traditional services. You need trusted advisors who demonstrate sound business practices and deliver practical advice and resources. Our insurance advisory and consulting team brings critical business thinking beyond traditional accounting and tax expertise to an array of industries and disciplines, including insurance and related entities.

• Internal Audit Outsourcing Control Reviews: For clients in which we are not the external independent audit team, we can provide more in-depth outsourced MAR/SOX assistance, which can include performing risk assessments, leading the MAR/SOX management controls assessment process, designing programs and testing of controls, tracking monthly compliance processes and reporting among others.  We also serve several insurance entities as outsourced internal audit services, providing testing, monitoring and reporting over the organizations key processes and functions.
• Integrated Audits, MAR Audits and SOC Examinations: Our insurance audit team has decades of experience performing Model Audit Rule (MAR) audits, Sarbanes-Oxley Act (SOX) Section 404 integrated audits as well as Systems and Organization Controls (SOC) Examinations (for ASO, ASC and other outsourced third-party processing performed by insureds and others) (SOC 1, 2, 3, Cybersecurity Examinations).
• Statutory and U.S. GAAP Accounting, Preparation, Reporting and Auditing: Engage with our distinct SAP and GAAP accounting practices when your company prepares for its next audit. Our Insurance Services Team is prepared to provide you with the necessary support and solutions to navigate your next audit and tax cycle effectively.
• Outsourced Accounting and Reporting: Cherry Bekaert offers a separate team dedicated to outsourced accounting and reporting for insurance carriers, preparing quarterly and annual statement filings, general ledger accounting, investment advising and management (through our Meritrust Advisors entity), payroll, A/P and claims processing and reporting, building out systems and processes for tracking and reporting of insurance activity, among others. Our capabilities include providing total back-office outsourcing of functions for small to mid-sized insurers who do not have the resources in-house to handle the complexities and experience required for preparing these time intensive filings (annual statements, From A, B, D, E’s, reinsurance and investment interrogatories, etc.)
• Regulatory Compliance and Reporting: Maintaining regulatory compliance is extremely difficult and challenging, given the myriad of varying state-by-state application of NAIC standards as well as each states unique statutes that exist.  Add to that a growing and expanding Federal Insurance Office (FIO) influence on international and NAIC regulations, it is extremely difficult for small to medium sized insurance carriers to stay abreast of the ever-changing regulatory landscape. We understand the highly regulated and complex insurance regulatory process and we team up with other regulatory consultants and experienced regulatory attorneys to provide assistance to companies with their regulatory questions and concerns.  Whether it is from our audit perspective or in providing outsourced accounting and consulting services, we integrate our regulatory knowledge and compliance into our core service offerings.
• Transaction Advisory Services: When you grow your business through mergers and acquisitions, we can help you maximize on synergistic benefits like enhanced cost efficiencies, revenue enhancement, cost savings, and market share. Our transaction advisory professionals apply deep industry knowledge and expertise, and take qualitative and quantitative approaches to identify risks and opportunities to help our insurance industry clients reduce risk while enhancing overall transaction value through all aspects of the due diligence process.
• Talent Assessment, Recruiting and Staffing: Successful businesses know how to acquire the right people, develop the appropriate talent, and retain the best people. Leverage a host of tools and resources to attract and acquire the best people through assessments, hiring assistance, employment screening, outplacement, career counseling, and succession planning. Develop the appropriate talent by leveraging our expertise in areas that include leadership development, executive coaching, people management, performance reviews, onboarding, and soft skills training.
• IT Consulting and Digital Advisory: Our IT consulting services team knows the importance of technology and business processes in your company. That’s why our professionals consider your business goals first and the technology that supports them second, thus ensuring you have optimal technology solutions.
  • IT & Cybersecurity Governance, Strategy, Security Planning, and Policies & Procedures
  • Security Awareness Training & Program Development
  • Readiness Assessments & Advisory Services
  • Risk Assessments
  • Vulnerability Assessments & Scanning
  • Penetration Testing (Ethical Hacking)
  • System & Organizational Controls and Attestation Services
  • IT & Cybersecurity Due Diligence
• Insurance-specific Operating Processes and Systems Consulting: Operate at the highest level of efficiency with the help of our experienced and dedicated insurance services team. We are prepared to step in to make sure your services reach the quality threshold your company demands and deserve.
• Strategic Growth and Innovation: Our strategic growth and innovation professionals utilize a comprehensive system to ensure organizations are getting the most out of their business, including Entrepreneurial Operating System (EOS) implementation. Strategic goals relative to people, process, systems, and structures are of paramount importance in today’s business world. Utilize solution-based services tailored to meet the organization’s needs, climate, and budgets while meeting and exceeding organizational goals.