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🔍 '''Audit manager''' is a mid-to-senior professional within an [[Definition:Insurance carrier | insurance company]], [[Definition:Reinsurer | reinsurer]], brokerage, or external audit firm who leads the planning, execution, and reporting of audits covering insurance operations, financial statements, regulatory compliance, and internal controls. In the insurance context, the audit manager's work is shaped by the sector's unique complexities: long-tail [[Definition:Claims reserve | claims reserves]], [[Definition:Reinsurance recoverables | reinsurance recoverables]], [[Definition:Premium recognition | premium recognition]] rules, [[Definition:Delegated underwriting authority (DUA) | delegated authority]] arrangements, and the interplay between multiple accounting and regulatory frameworks — including [[Definition:US GAAP | US GAAP]], [[Definition:IFRS 17 | IFRS 17]], [[Definition:Solvency II | Solvency II]], local statutory accounting principles, and jurisdiction-specific regimes such as [[Definition:C-ROSS | C-ROSS]] in China or the FSA's standards in Japan.

📋 An audit manager's responsibilities span the full audit lifecycle. Internally, they design risk-based audit plans that prioritize areas of highest exposure — evaluating the adequacy of [[Definition:Loss reserving | loss reserves]], testing the accuracy of [[Definition:Bordereaux | bordereaux]] data flowing from [[Definition:Managing general agent (MGA) | MGAs]] and [[Definition:Coverholder | coverholders]], and assessing whether [[Definition:Underwriting | underwriting]] guidelines are being followed within [[Definition:Binding authority agreement | binding authority]] programs. In external audit engagements, the audit manager coordinates teams reviewing an insurer's financial statements, scrutinizing actuarial assumptions, and ensuring that disclosures meet the requirements of applicable standards. The role requires deep technical knowledge: understanding how [[Definition:Incurred but not reported (IBNR) | IBNR reserves]] are estimated, how [[Definition:Ceded reinsurance | ceded reinsurance]] transactions affect reported results, and how regulatory capital calculations are constructed. The audit manager also serves as the primary point of contact between the audit team and the client's or company's senior management, translating findings into actionable recommendations.

🏛️ Effective audit oversight is essential in an industry where financial misstatements — particularly around reserves — can mask deteriorating performance for years before manifesting as a crisis. [[Definition:Insurance regulator | Regulators]] across jurisdictions, from the [[Definition:National Association of Insurance Commissioners (NAIC) | NAIC]] in the United States to the [[Definition:Prudential Regulation Authority (PRA) | PRA]] in the United Kingdom and [[Definition:European Insurance and Occupational Pensions Authority (EIOPA) | EIOPA]] in Europe, impose specific audit and reporting requirements on insurers that go beyond those in other industries. Audit managers who specialize in insurance develop expertise that is difficult to replicate, making them highly valued both within internal audit departments and at the major accounting firms that serve the sector. Their findings often drive improvements in [[Definition:Internal controls | internal controls]], data governance, and operational processes — contributing not just to compliance but to the overall financial resilience of the organizations they examine.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Internal audit]]
* [[Definition:Reserving]]
* [[Definition:IFRS 17]]
* [[Definition:Solvency II]]
* [[Definition:Bordereaux]]
* [[Definition:Regulatory compliance]]
{{Div col end}}

Definition:Audit manager - Revision history

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