The National Association of Insurance Commissioners (NAIC) Risk-Focused Surveillance (RFS) Framework is effective January 1, 2007. Management will be rated on its ability to identify, assess, and prospectively manage insurance business risks through an integrated internal control framework.
The risk focus process broadens and enhances the identification of the risk inherent in an insurer‘s operation. It also utilizes the result to match on-going regulatory surveillance to individual insurer‘s needs. The framework is designed to “Audit the Process and Not Just the Results“. It provides the company and regulator with a tool to measure risk and design a surveillance effort to balance benefits with costs.
The RFS Framework has been customized to the insurer‘s internal control needs. The RFS Framework requires management to think critically about their business processes, risks, and financial controls. It also creates the opportunity to improve business processes, enhance risk management, and reduce costs through reliable internal controls.
Our professionals understand the concerns of the insurance industry, the internal control frameworks, and the new documentation standards. Let HRMSI assist you in your internal control needs and providing innovative and effective solutions that moderate your regulatory surveillance costs.
For more information, please feel free to contact Mark S. Fischer at (630) 243-0117 or email MFischer@riskinc.net.