Entities in the insurance sector, reporting to a regulator of their own.
The applicable reporting framework depends on the type of entity. An insurer prepares accounts under the requirements made by the Insurance Regulatory and Development Authority of India; an intermediary or service provider reports under the framework for its own constitution, with sector-specific regulatory returns on top.
Premium, commission and claims balances pass between parties, so reconciliation of collections and remittances, and the controls over policy and accounting systems, carry more weight than in an ordinary trading business.
Accounting and reporting
- Financial statements prepared under the framework applicable to the type of entity
- Reconciliation of premium, commission and claims-related balances
- Recognition of commission income and the treatment of clawbacks
- Balances held on behalf of insurers or policyholders
Regulatory
- Regulations made by the Insurance Regulatory and Development Authority of India for the relevant category of entity
- Regulatory returns and disclosures applicable to that category
- GST treatment of insurance-related services, including commission
Internal controls
- Reconciliation of collections against remittances
- Review and approval of manual adjustments
- Access controls over policy administration and accounting systems
- Reconciliation of balances with insurers, agents and customers
Questions that arise
- Which regulator's requirements govern this entity's reporting?
- Are balances with insurers, agents and customers reconciled on a regular cycle?
- Do the regulatory returns agree with the books?
- Is commission income recognised net of expected clawbacks?
Official sources
- Insurance Regulatory and Development Authority of India (opens in a new tab)
- Ministry of Corporate Affairs (opens in a new tab)
- GST portal (opens in a new tab)
This is experience of professional work for entities in the insurance sector. It is not actuarial work, which is carried out by actuaries.