Insurance

The Insurance Industry Services Team at WithumSmith+Brown gives its clients a competitive edge. We offer specialized advice, key marketplace insights and solid preparation to help our clients meet the challenges that lie ahead. Our goal is to ensure our client's profitability; we want to ensure that our clients not only survive this challenging marketplace, but that they thrive in it.

Our integrated team of professionals is comprised of seasoned, well-known CPAs and industry leaders, who are at the pulse of the insurance business. As authors of key publications, members of major insurance associations and sought-after speakers at leading industry events, we believe our team is among the best and brightest in the industry.

Collectively, the team has specialized experience in areas of tax, audit, corporate governance and IT consulting, offering our clients some of the most qualified services available.

This team of talented professionals has been a valued partner to companies of all sizes in life & health, property & casualty and health care insurance sectors for decades. In addition, we do extensive work with HMOs, re-insurers, third-party administrators, captives and self-insured organizations, including those in the trade and construction business.

We believe that the best way to serve our insurance clients is to service them from within the Firm. Unlike many CPA and consulting firms, we do not believe in outsourcing work to third party consultants, nor to distant satellite offices across the U.S. Our team works together— closely and efficiently— to serve you better. We employ over 375 dedicated professionals with a common mission: outstanding client service. Therefore, no matter how large or small the engagement, our clients can count on our quality and commitment. Our dedicated partners are involved with client engagements —and they stay involved.

REGULATORY SERVICES
The National Association of Insurance Commissioners (NAIC) finalized the revisions to the Annual Financial Reporting Model Regulation (also known as "MAR" or "Model Audit Regulation"). These changes will require corporations to take an objective look at their operations to identify gaps. Namely, your business may need to revisit its corporate governance structure and examine its internal controls over financial reporting, thanks to the Sarbanes-Oxley ("SOX") type provisions. The impact of these new requirements to the insurance industry is substantial.

Our Insurance Industry Services Team is at the pulse of the industry, always leading our clients to understand the timing and impacts that state and federal regulation has on their business. We want to ensure that insurance companies not only reach compliance —but have long-term outcomes of efficiency, sustainability and profitability. We have extensive experience in conducting financial examinations, market conduct reviews and demutualizations. We work in conjunction with various State Insurance Departments, and at times, on behalf of them.

INTERNAL CONTROLS & AUDITS
As insurance companies continuously change and grow, there is tremendous opportunity for the internal audit function to contribute more to the organization. Many companies are now outsourcing their internal auditing, realizing the need to remain focused on their primary business function while taking advantage of the benefits outsourcing provides.

Inflation and affordability are affecting all lines of insurance. Therefore, companies that focus on expense management, high quality investment performance and key internal strengths will emerge successful. As your internal auditor, WithumSmith+Brown Global Assurance, an affiliate of WS+B, will bring a wealth of experience and expertise to your organization. We will provide an independent and fresh perspective of your company's operations in a cost-effective manner, leading to new and innovative ideas for improvement in the form of:

• Cost reductions
• Improved operating efficiency Increased revenue and cash flow
• Fraud detection and prevention
• Insight into key functional areas of your organization, including opportunities for outsourcing
• Solutions to control the impacts of the rapidly retiring support personnel (claims underwriters, adjusters, etc.)

Our Insurance Industry Services Team has led successful engagements for insurance companies of all sizes in areas of auditing, accounting, process improvement, operations control reviews and sophisticated audit compliance.

In addition, we continuously receive client referrals from the Big 4 Firms, to assist their clients in meeting Sarbanes-Oxley 404 requirements. The Big 4 Firms know they can rely upon our outstanding quality and reputation to effectively service their clients.

Our team is a leading service provider known throughout the industry for our efficient, high-quality approach.

FINANCIAL CONDITIONS & MARKET CONDUCT PREPARATION
Many companies do not have the resources or expertise to adequately prepare for periodic insurance department examinations. WS+B has experienced industry professionals that can help you assemble information in a format that can help make your examinations less stressful for both your company and the state examiners. Adequate preparation also has the benefit of lowering you state examination fees!

CORPORATE GOVERNANCE
The dynamics of Wall Street, state and federal government regulations continue to stir the insurance industry with renewed concerns about corporate governance. More than ever, insurance companies need to take an introspective look at their board effectiveness, operations and financial reporting.

As greater reliance is placed on these processes and relationships, you need to reduce risk to safeguard your organization's reputation and economic exposure. Having a trusted partner to train and educate management on these key issues is critical.

Our Insurance Industry Services Team also offers market-leading consulting services to public and private companies. Together, we help meet and exceed expectations in board governance and effectiveness.

IT, DATA SECURITY & TECHNOLOGY RISK CONSULTING
As buyers become savvier, insurance companies are seeing greater opportunity in the online world to sell their products. The virtual realm makes insurance companies particularly susceptible to data security issues and online fraud. With intense scrutiny from the government and investors alike, those companies with flawed data security protocols will lose significant market share in this economy.

Despite the soft markets, now is the time for insurance businesses to invest in IT systems and controls for data security, as well as improved processes and workflow. Not only will these improvements lead to efficiency, but greater productivity.

Our team is known throughout the industry for their innovative and proprietary approach to engagements in areas of IT consulting, SAS-70 audits and internal controls. As the recipient of the Practice Innovation Award named by Practical Accountant Magazine, our clients know they are working with a foremost authority. They trust our sound methodology and insights as well as the efficient, non-disruptive practices we employ to help them reach their goals.

EXTERNAL AUDITING SERVICES
An audit provides the highest level of assurance of your financial statements and must be conducted with meticulous professionalism. At WS+B, our objective is to provide you with an audit opinion with minimum disruption for you and your company.

We approach your audit with an evaluation of your internal controls and systems, and we perform each audit using cost-effective methods and procedures. We achieve this through detailed planning and active communication with your company. Our Firm's low turnover and strict adherence to deadlines also provides quality assurance to our clients.

Often the audit opinion rendered has far-reaching legal and market ramifications, including the ability to:

• Improve the credibility of your financial statements with the lender
• Encourage capital providers to invest and/or approve loans
• Assist with mergers & acquisitions

With WS+B, you can be assured of our commitment to excellence in performing high quality audits with the least amount of interruption to your staff.

MERGERS AND ACQUISITIONS
Due to the complex nature of the insurance industry, mergers & acquisitions require specialists who not only understand the industry, but also how to optimize the deal. Our Insurance Industry Services Team helps:

• Navigate clients through many complex issues to be resolved and the tough decisions to be made
• Simplify the process for you and allow for a smooth transaction
• Provide you with the critical facts you need to make informed decisions about the best alternatives for the future of your company

As your trusted business advisor, we will continue to guide you throughout the entire process. We will provide the expertise, objectivity and organization skills to ensure a favorable transaction.

TAX SERVICES
We have experienced tax experts who provide consulting and advisory services tailored specifically to the insurance industry. Our many tenured clients have relied upon our specialized tax expertise, year in and year out. Our services have benefitted companies in the U.S. and internationally, thanks to our affiliation with HLB International.

PENSION SERVICES
WS+B has a substantial client base that relies on our audit services to satisfy ERISA requirements. This includes large publicly-held companies as well as mid-sized businesses throughout the Mid-Atlantic region.

LITIGATION SUPPORT
With one of the largest Litigation Support practices in NJ, WS+B is well-equipped to service the insurance industry. We employ meticulous forensic accounting techniques to determine lost profit damages, contractual damages, fraud and embezzlement losses, as well as damages due to wrongful death. These same techniques also accurately determine loss of income due to personal injury, or business interruptions and related financial matters.

OUR FIRM'S RELATIONSHIPS WITH ACTUARIES
The Firm maintains relationships with major and boutique actuarial firms to assure impartiality of our consultants. Our diversity of relationships also allows us to offer clients the best actuarial service at the most affordable prices.