In 2005, the vast majority of U.S. insurers were privately held and thus not subject to the requirements mandated by the Sarbanes-Oxley Act of 2002. However, private insurers must follow financial reporting rules set forth by the National Association of Insurance Commissioners.
As the NAIC considers adoption of SOX-related best practices, leading private insurers already are preparing for the inevitable increase in regulatory scrutiny.
Many of the insurance industry's traditional business processes and information technology systems will not support the projected demands of SOX-style compliance. In response, some private insurers are consolidating their business systems, examining where and how they store critical data, and proactively adopting internal controls similar to those outlined within SOX sections 303, 404 and 409.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
