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We are extremely pleased with their work to date and would highly recommend their professional actuarial services for your needs.

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At L&E, we conduct risk-focused surveillance financial examinations on behalf of state insurance departments, adhering to the standards laid out in the NAIC Financial Condition Examiners Handbook. Our expertise ensures not only compliance with these standards but also a deep understanding of NAIC accreditation requirements, helping regulators protect policyholders and maintain market stability.

Why Choose Lewis & Ellis for Your Financial Examination Needs?

Thorough financial examinations are essential for state regulators to assess the financial health of insurers and ensure their ability to maintain sufficient capital and reserves to meet policyholder obligations. Our examinations aid state departments by identifying financial strengths and weaknesses, thereby informing regulatory decisions and guiding actions that support compliance with legal and financial standards.

Regular and thorough examinations conducted by our team ensure that insurers under your purview adhere to regulatory requirements, minimize the risk of insolvency or non-compliance, and maintain market trust and stability.

Meet Our Financial Examination Experts

We boast a competent team skilled in employing risk-focused surveillance tools and exhibits. Furthermore, as licensed TeamMate users, our proficiency is unmatched.

Our financial examination team is composed of:

Certified and accredited financial examiners, taking on supervisory and in-charge roles.
Process flow experts adept at pinpointing and documenting crucial functional activities, ascertaining inherent risks and key control points, evaluating internal controls and control mitigation strategies, and computing residual risk.
Information systems specialists equipped to evaluate controls in information systems.
Actuaries adept in providing comprehensive examination assistance related to aggregate reserve, asset adequacy, loss reserve, and other actuarial aspects.
Investment specialists skilled in analyzing complex and sophisticated investment portfolios.
Reinsurance specialists with in-depth knowledge of contracts, claims, accounting, and underwriting related to reinsurance transactions.

What We Do: Financial Examination Services

Our team provides a wide range of examination services tailored to meet the needs of state insurance departments. Our focus is on regulatory compliance, and we take a methodical approach to ensure that insurers within your jurisdiction are operating in accordance with the law.

Risk Transfer and Reinsurance Analyses
Our experts review reinsurance agreements and risk transfer mechanisms to ensure that insurers comply with regulatory requirements and that risks are appropriately managed.

Transaction Analysis
We perform detailed analyses of business transactions to assess their financial and regulatory implications, ensuring they align with regulatory standards and promote market stability.

IT Reviews
We evaluate insurers' information systems to assess their security, performance, and compliance with regulatory requirements, helping state departments manage risks associated with technology.

Operational Reviews
We perform operational reviews to assess insurers' internal processes, identifying operational risks and providing recommendations for improvement to ensure regulatory compliance.

Form A and Form D Filings
Our team assists with the review of Form A and Form D filings, ensuring that mergers, acquisitions, or changes in control of insurance companies comply with state regulatory standards.

Regulatory Risk-Focused Financial Examinations
We conduct both full-scope and targeted financial examinations to help state departments assess the financial stability of insurers, ensuring they meet regulatory expectations.

Regulatory Risk-Focused Financial Analysis
Our financial analyses help state regulators identify areas of vulnerability within insurance companies, including risks posed by changes in laws, industry guidelines, or financial reporting requirements.

Schedule Your Financial Examination With One of Our Experts Today
Ready to enhance your regulatory oversight? Contact us today and one of our financial examination experts will be in touch.

FAQ: Financial Exam Questions

What are the Deliverables and Reporting Outcomes of A Financial Examination?

What Is the Difference Between Full-Scope and Targeted Financial Examinations?

Full-scope financial examinations evaluate every aspect of an insurer's operations, including financial condition, governance, compliance with regulatory standards, risk management practices, and internal controls. These comprehensive assessments aim to provide regulators with a complete picture of an insurer's stability and reliability.

Targeted financial examinations, on the other hand, focus on specific areas of concern or high risk, such as reinsurance agreements, investment portfolios, or IT systems. These examinations are narrower in scope and designed to address particular issues identified through ongoing risk surveillance or prior examinations.

What Are the Common Challenges Uncovered During Financial Examinations?

Financial examinations often reveal challenges such as inadequate capital reserves, weaknesses in internal controls, or discrepancies in financial reporting. Other common findings include insufficient risk transfer in reinsurance agreements, overly concentrated investment portfolios, or deficiencies in IT security and data management.

Operational inefficiencies, gaps in governance practices, and non-compliance with regulatory requirements also frequently surface during these examinations. By identifying these challenges, financial examinations help insurers address vulnerabilities and improve their overall financial health and compliance.

Can L&E Help With Post-Examination Corrective Actions?

Yes, L&E offers support beyond the examination process by assisting insurers and regulators in implementing corrective actions. Our experts provide actionable recommendations based on examination findings, helping insurers address deficiencies and improve compliance.

This may include revising internal controls, enhancing risk management practices, or aligning processes with regulatory standards. We also offer guidance on developing remediation plans and timelines to address specific issues identified during the examination. Our goal is to ensure long-term financial stability and regulatory adherence for all stakeholders.

Financial Examination Services