An insurance examiner is a government employee tasked with auditing insurance companies and ensuring that they comply with local, state, and federal laws. Examiners are required to conduct audits on a regular basis in many countries, but they also have the authority to conduct audits on an as-needed basis if an insurance firm is suspected of violating industry rules or regulations. Examiners working on major company investigations usually work in teams, with each person responsible for one aspect of the company’s financial affairs.
A college degree is typically required of an insurance examiner, and many employers prefer to hire people who have completed finance or mathematics related degree programs. In some countries, auditors must be licensed accountants; in this case, an examiner may be required to take a series of accountant training classes before passing a licensing exam. Regulatory agencies frequently hire examiners who have prior experience working in the insurance industry, in addition to hiring examiners with accounting or finance related academic credentials.
Insurance companies offer a variety of policies, such as life, health, property, and liability insurance. Many countries have laws in place to ensure that these companies have enough cash on hand to cover expected payouts. An insurance examiner must look over each company’s books and compare its cash reserves to its liabilities. If the company is short on cash, the examiner may tell it to raise more money or stop issuing new policies until its cash reserves are replenished. In the worst-case scenario, an examiner may be able to shut down a company and liquidate its assets if its obligations far outweigh its resources.
In addition to checking cash reserves, an insurance examiner must examine the policies that a company issues to ensure that they comply with local or national policy writing regulations. Examiners in some countries can levy fines and other penalties against companies that break industry rules. Examiners can also take disciplinary action against individual agents or underwriters who break the professional code of conduct.
In some states, companies are prohibited from selling life insurance policies, such as annuities, until an examiner has reviewed all of the product’s documentation. In some areas, major corporations are permitted to sell policies that are in violation of regulatory requirements in other areas. Examiners can advise insurance companies on how to make changes to policies so that they meet industry standards, in addition to rejecting or approving new product offerings.