The Insurance Brokerage industry is navigating a transformative period, marked by regulatory complexity and evolving clients’ expectations. As Internal Audit Manager in Associated Alliance Incorporated (AAI), my role isn’t just about compliance, but rather about enabling strategic resilience. In this article, you will explore why internal audit expertise is a must for every company to navigate challenges, ensure transparency, and offer tailored solutions.

1. Trends Shaping Insurance Brokerage: Regulatory frameworks are tightening financial reporting and data privacy requirements with non-compliance penalties. In AAI, we conduct preemptive audits, ensuring policies adhere to jurisdictional regulations in every country where we operate.


2. Adding Value Beyond Compliance

a. While compliance with laws and regulations remains a cornerstone of internal audit, its true value lies in insight. In AAI, our Internal Audit goes beyond ticking boxes; we assess process efficiencies, risk controls, and strategic alignment across departments in line with the directives of regulatory bodies, the existing policies and procedures and the recommendations of AAI Audit Committee.

b. We also review our customer onboarding processes to make sure that the following framework is well implemented:

  • Client contact and needs assessment
  • Know Your Customer (KYC) verification
  • Screening for Politically Exposed Persons (PEPs)
  • Anti-Money Laundering (AML) compliance checks
  • Collection of required client documentation
  • Underwriting & risk assessments
  • Preparation of comparative quotes (minimum 4 options)
  • Client review and selection
  • Final policy issuance

c. The Internal Audit in AAI evaluates the efficiency of our claims-handling by inquiring on any pending claim, and on the effectiveness of our client data management-ensuring not only regulatory adherence but also improved service delivery.

d. Rules like solvency, licensing, and AML is often seen as a challenge but as Internal auditors in AAI, we can help turn them into a way to build trust.

 

3. Building Trust Through Transparency:

a. In a world where trust matters most, Internal Auditing helps ensure that our commitments to clients, regulators and partners are maintained. We adopt transparency and mitigate risk. While AAI continues to evolve to meet modern challenges, Internal Audit evolves as a partner in Governance and a reputation protector.

b. At Associated Alliance, we believe that strong governance is the backbone of exceptional service. Through our internal audit function, we reinforce this belief every day, ensuring that our clients can trust us not just for coverage, but also for integrity.

 

4. Financial Resilience and Fraud Prevention: The Internal Audit department in AAI is committed to ensuring:

a. Compliance with regulatory requirements.

b. Adherence to International Financial Reporting Standards (IFRS).

c. The implementation of Accounting and Finance Policies & Procedures included but not limited to: Reconciliations and credit control policy, Banks reconciliations, Provisions and accrual expenses, Revenue Recognition and end of reporting period closing procedures.

d. Verifying the segregation of duties among the different accounting and finance team members.

 

5. AAI Internal Audit’s Role in Decision making:

a. Participating in strategy-level debates without compromising independence.

b. Using audit findings and figures to support strategic decisions.