Insurance Regulators

  1. Christopher J. Tait

    Christopher J. Tait

    MBA, CISA, CCSK, CFSA

    Principal

  2. John Romano

    John Romano

    CPA, CIA, CFE, CITP, CSM

    Principal

  3. Baker Tilly Professional

    Russell Sommers

    CPA, CISA

    Principal

Baker Tilly’s insurance industry regulatory services specialists have been involved in the examinations of life, health and property/casualty insurers of all sizes for more than 25 years. Our regulatory services include risk-focused financial examinations, actuarial and IT examinations and financial analysis projects, administrative supervision, rehabilitation and liquidation assignments.

Now more than ever, innovative approaches, depth of specialists and a trusted team are needed to deliver results. Our team of specialists have experience in both auditing and examining insurance organizations and can assist your organization in all phases of its journey.

Experience and specialization

Contemporary regulatory standards require insurers to develop and continually challenge their risk assessment and management programs. In turn, insurance regulators need experienced, hands-on assistance in evaluating an increasingly complex array of programs and their effectiveness. When financial stress overcomes an insurer’s ability to maintain its financial soundness, more urgent needs arise. Regulators must evaluate root causes and provide proactive oversight, which can include development, approval and implementation of remediation, rehabilitation plans or liquidation. 

Explore our services:

  • Financial examination support
  • Market conduct examinations
  • Information technology support and cybersecurity assessments
  • Financial analysis
  • Investment services 
  • Actuarial exam support
  • Artificial intelligence and governance specialists

Financial examination support

State insurance departments must continuously evolve their approach to performing risk-focused examinations. Our insurance specialists have extensive experience in implementing the latest risk-focused methodologies in the field and providing on-site training and support. In today’s regulatory environment, examinations must focus not only on current risks but also on prospective risks, including the impact of technology and artificial intelligence (AI) on an insurer’s strategy and solvency.  

  • Risk-focused advisory services 
  • Financial examination services 
  • Actuarial support 
  • Training (e.g., regarding financial analysis, risk assessment, ORSA, risk-focused exam approach) 
  • Investment and derivatives specialist services 
  • Capital market transactional reviews and analysis 
  • Enterprise risk management (ERM) and own risk and solvency assessment (ORSA) evaluation 
  • Corporate governance assessment 
  • Captive insurer and risk retention group specialist services 

Market conduct examinations

Our team is dedicated to conducting impartial market conduct analyses and examinations to identify potential consumer hard and regulatory violations for state insurance departments. We offer a range of services and specialize in examining a diverse range of business lines, ensuring comprehensive oversight and regulatory compliance. 

  • Targeted and comprehensive examinations 
  • Single and multi-state examinations 
  • Market regulation program development 
  • Market regulation consultation 
  • Market analysis including Level 1, Level 2 and Market Conduct Annual Statement (MCAS) reviews 
  • Data analysis 

Information technology support and cybersecurity assessments

Technology risks are increasing and changing at a rapid pace and regulators must keep up wither these new threats to the insurance industry. Our skilled team of professionals includes CISAs an Certified Information System Security Professionals (CISSPs) with extensive experience in performing Exhibit C reviews, cybersecurity assessments and breach management, HIPAA assessments, and privacy, security and control assessments related to compliance with applicable laws and regulations for insurance organizations. 

Financial analysis

State insurance regulators analyze financial information from insurers in a variety of settings. Our insurance specialists are adept at researching and analyzing business matters and developing insights to support risk assessment and decision-making for supervisory reviews. 

  • Routine or special assignments, including examination assistance 
  • Admissions 
  • Troubled companies 
  • Holding company filings 
  • ERM and ORSA analysis 
  • Investment risk management analysis 
  • Evaluation of financial forecasts and projections 
  • Evaluation of risk-based capital recovery plans 
  • Evaluation of Form A, D, F and other regulatory submissions 
  • Reinsurance treaty review 
  • Claim management and contract disputes 
  • Damage analysis 
  • Litigation and dispute resolution support 
  • Agency/MGA/TPA investigations 

Investment services 

Baker Tilly has extensive experience with valuation and impairment issues involved with less liquid securities, and our depth of experience enables us to assess market risk, credit risk and operational risk to most appropriately design examination testing procedures. In addition, we have extensive financial and business knowledge to understand and evaluate contract terms that may be involved in custody agreements, securities lending agreements, private placement offering terms, investment advisory agreements, repurchase agreements and derivatives terms. Baker Tilly has the experience and capability to assist in the review, analysis and evaluation of some of the most complex aspects of an insurer’s investment products, portfolio strategies, asset-liability matching, derivatives use and related hedging programs, portfolio management agreements, enterprise risk and governance, securities lending, funding agreement arrangements and collateral management. 

Actuarial exam support

Baker Tilly brings in-house expertise in property/casualty, life and health insurance, and is thoroughly familiar with the risk-focused examination process. Our team includes credentialed actuaries with the Fellow of the Casualty Actuarial Society (FCAS) and Fellow of the Society of Actuaries (FSA) designations. Additionally, we have strong relationships with other actuarial firms to supplement our services as necessary, ensuring comprehensive and robust support for your actuarial examination needs 

Artificial intelligence and governance specialists

Our team brings specific consulting expertise to assess artificial intelligence (AI) governance frameworks, policies and risks. Combining AI governance principles with robust data governance strategies, we ensure organizations strike the right balance between innovation and compliance while considering transparency, accountability, and ethical practices in both AI and data management. From a regulator’s perspective, we help assess policies and procedures to manage the internal and external risk environment associated with AI while reviewing established internal controls to monitor and protect exposure at an organization. Our subject matter professionals have expertise in model risk and validation, Microsoft Azure, Amazon AWS Cloud and other enterprise environments.

2024 SOFE CDS insights 

At the recent 2024 Society of Financial Examiner’s (SOFE) Career Development Seminar, several of our insurance industry specialists hosted sessions on topics ranging from Model Audit Rule (MAR) implementation and optimization to third party risk management, artificial intelligence (AI) and exploring ChatGPT. Follow the link below and you will find a breakdown of our key takeaways from each of the Baker Tilly-hosted sessions. If you have any questions or comments on these session insights, contact a specialist.

By the numbers

6th largest

health insurance auditor (A.M. Best 2023) 

12th largest

P&C insurance auditor (A.M. Best 2023)

Top 25 largest

life insurance auditor (A.M. Best 2023) 

Let’s explore what’s possible, together 

Our regulatory and financial services practice includes Certified Financial Examiners (CFEs), Certified Information System Auditors (CISAs), Certified Public Accountants (CPAs), Associates in Risk Management (ARMs), Market Conduct Management (MCM), Certified Fraud Examiners (CFE Fraud), Chartered Financial Analysts (CFAs) and individuals with deep expertise in conducting coordinated examinations of large insurance organizations with multiple departments participating. Schedule a 30-minute introductory meeting with one of our specialists. 

© 2024 Baker Tilly US, LLP