State insurance departments frequently look to Invotex professionals to manage or perform on-site examinations or financial analysis at the Department’s offices. In that regard, they often require specialized expertise in a diverse range of areas. Such specialty areas include:
- Reinsurance — The ever-increasing complexity both of reinsurance arrangements as well as regulatory rules for accounting, disclosure and risk transfer result in many challenges for insurers and regulators alike. A multi-disciplinary approach is often needed that benefits from operational and claims experience within the industry; from legal experience; from experience in examinations and audits; from actuarial expertise; and from an extensive history of monitoring regulatory developments at the state and NAIC levels. Invotex has those capabilities and the related experience and is uniquely situated to assist states in reviewing insurers’ reinsurance programs and arrangements.
- Investments — The capital markets continue to cater to insurers with a smorgasbord of increasingly complex investment vehicles. Investments directly impact an insurer’s risk profile, and have implications as to accounting, valuation, cash flow testing, liquidity, asset diversification, and ultimately, solvency. Invotex has investment specialists on staff and, as a firm, is qualified in numerous states to provide investment advisory services on examinations or to fulfill other regulatory needs.
- Information Technology (IT) — The IT function is a fundamental competency and key to the success of any insurer. Regulators are increasingly concerned with the ability of an insurer’s IT function to mitigate operational risks without presenting new and more onerous risks in the process. The insurer’s business continuity plan will hinge on its ability to quickly recover from business and operational interruptions. Supported by our alliance relationships, Invotex can provide experienced and capable IT support to regulatory examination teams. Furthermore, we can provide hands-on operational, network and security support to receivers as they take over companies in rehabilitation.
- Actuarial — The involvement of actuaries is critical to fully understanding an insurer’s products, the risks they present to a company, and the means by which the insurer monitors and manages those risks. Supported by our alliance relationships, Invotex involves actuaries on its risk-focused examination teams to assist in C-Level interviews and in discussions with the insurer’s actuarial and risk management leaders about product-related risks and enterprise risk management.
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