PwC in Ireland have developed a specialist group to meet the needs of the insurance sector for professional advice through a wide range of hands-on experience in all disciplines - audit services, regulatory, accounting and tax advice, risk management, recruitment and legal services.
This group operates as a distinct group within the Irish Firm and has approximately 75 partners, managers and staff who specialise in insurance.
Our Credentials
PwC is the leading provider of professional services to the insurance industry in Ireland.
We currently act as auditors and tax advisors to seven of the top ten domestic life companies, accounting for circa 50% of total domestic market premium income (based on annual premium equivalent income statistics extracted from the 1998 DETE Blue book). We are also auditors to seven IFSC life companies operating on a cross-border basis out of Ireland.
In the non-life market, we serve as auditors and tax advisors to the top five non-life companies and eight out of the top ten companies in the domestic market. In total the companies we are auditors and tax advisors to account for nearly 80% of total market premium income (based on premium income statistics extracted from the 1998 DETE Blue book). We also act as auditors and business advisors to over 50 third party international insurance and reinsurance operations and captive insurance companies established in the IFSC.
Our Services to the Insurance Sector
Our specialist insurance group has huge experience in assisting, both domestic and international insurance companies, with a wide range of establishment and ongoing business needs.
For more information on the services offered by the PwC Insurance Practice in Ireland, please contact
Assurance and Business Advisory Services
Our insurance practice provides a wide range of services to the Insurance industry, including;
Audit
We have developed a very specialised approach to the audit of life and non-life insurance companies which focuses on the key risks attaching to the business. Our audit approach includes a detailed planning stage, designed to identify the key risks to which an insurance company may be exposed, the controls in place to address those risks and the approach to evaluate the effectiveness of those controls. We use a software package, which includes insurance specific modules to assist in the planning and implementation of the audit process.
Accounting
We provide accounting advice to our audit and non-audit insurance clients in areas ranging from premium recognition through financial reinsurance and actuarial reserving to profit recognition. For example, we have particular experience in the area of achieved profits / embedded value calculations and US GAAP accounting.
Regulatory
Based on our detailed knowledge of the regulatory environment in Ireland, and utilising our global insurance network, we have completed many assignments to examine local and international regulatory issues. We have advised on the set-up of many IFSC companies, both direct life and non-life writers and reinsurers. We have strong experience in assisting clients with the preparation of regulatory and tax licence applications. We have regular contact with the Irish Insurance Regulator, the Department of Enterprise, Trade and Employment, and as result have a well developed knowledge of their requirements and views on key issues.
Our investment management practice in Dublin has played a key role in the development of the IFSC and has been involved in the key committees relating to the centre since its establishment, particularly those relating to development of the industry, technical and legislative matters in the marketing of the centre. We provide a wide range of accounting, audit, tax, legal, compliance and consultancy advice to investment management operations.
Our investment management practice has become recognised in the industry as specialised in the performance of AIMR reviews to establish compliance with the AIMR requirements. We are also experienced in carrying out and reporting on FRAG 21 reviews, which is the standard for controls reviews in the United Kingdom and Ireland and which is used on a somewhat similar basis to SAS 70 in the United States.
Transaction Support
Our team has carried out a number of insurance due diligence projects in Ireland. In particular, we see due diligence as part of a wider service offering, that we have termed "Merger Integrator", which is in direct response to the challenges that companies face when considering a major merger or acquisition. Merger Integrator draws together best practice in assessing, executing and integrating large acquisition and mergers to reflect the processes applied by those companies which have avoided these pitfalls and are thus among the success stories.
Internal Control Reviews
Our specialist knowledge of the operational elements and risks of life and non-life companies has enabled us to carry out thorough and efficient internal control reviews in a number of organisations. The continuing pressures on the cost structure of insurance companies have resulted in leaner organisations with more automated controls and reduced manual intervention. For all internal control reviews, therefore, the involvement of both computer and mainstream audit teams is required.
Taxation and Legal Services (TLS)
We have the largest and most experienced group of tax professionals in Ireland. This has given us the critical mass to enable us to develop particular specialist knowledge in key areas of which insurance tax is one. Our taxation department has provided a wide range of taxation services to domestic and international audit and non-audit clients. Examples of our services include:
Product Design
Advice to major life assurance companies on tax efficient products and the structured investments which support them. Assistance to merchant banks to devise structured investments for sale to Irish life assurance companies.
Indirect Taxes
Development of innovative solutions for insurance companies wishing to outsource part of their activities in a manner that does not give rise to VAT exposures given their VAT exempt status.
Corporation Tax
Specialised advice to the in-house tax departments of clients on specialist life insurance tax issues
Restructuring
Assistance with acquisitions, disposals, mergers, reorganisations, transfers of trade etc. involving due diligence reviews, devising tax efficient strategies, reviewing and contributing to the legal documentation, securing Revenue clearances where required and seeing the transactions through to the tax returns.
Tax Shelters
Advising insurance companies on the range of shelters available, their viability for each company and the strategic approach to adopt in tax planning.
Cross Border
Advising on the formation of a variety of companies, including life, non-life, reinsurance and captives and assisting those companies to address typical issues such as controlled foreign company legislation, tax residence, transfer pricing, and minimising IFSC reliefs.
Training
Provision of tax based training to life assurance sales staff and brokers and developing tax technical back up on sales and product issues for life assurance companies
PwC is able to offer the services of a global network of law firms which are members of Landwell, its correspondent law firms. PwC's correspondent law firm in Ireland is Landwell Solicitors. There are approximately 1,400 lawyers within the global Landwell group throughout 42 jurisdictions.
Legal services include advising insurance companies on, and negotiation of appropriate legal documents to reflect, the formation of insurance companies, acquisitions, disposals, mergers, re-organisations, transfers of trade and performing legal due diligence.
Global Risk Management Services
Proactive risk assessment and sound risk management are essential tools in the modern complex business environment. This is particularly the case in the insurance industry. We have a team of risk management specialists who work with organisations to develop and maintain a competitive edge by managing risk at a strategic and tactical level. We approach risk by using a thorough framework that balances the downside risks associated with negative performance with the upside risks associated with new possibilities. Examples of services, which are of particular relevance to the insurance industry, are as follows:
Operational and Systems Risk Management
Operational and Systems Risk Management (OSRM) services address the risks associated with on-going business operations, systems, technology and major change initiatives. We have excellent experience in the review of insurance industry business processes and systems. Specific examples of work for insurance companies include pre and post implementation reviews, data security checks, general IT department control reviews, security awareness training, advice on security and procedures, documentation of computer applications, including detailed computer based controls and specialist business continuity planning.
Internal Audit Services
Driven by the need for more effective business risk management, clients turn to our Internal Audit Services (IAS) professionals for help either by supporting the existing function, partnering, or outsourcing their IA functions. Our Internal Audit Services practice provides a broad range of solutions to companies seeking to strengthen their internal control, risk monitoring and strategic risk management capabilities. These solutions range from strategic internal audit advisory services, designed to enhance the focus and value of, an existing internal audit or risk management function; to partnership with, or full or strategic outsourcing of an existing internal audit function. In serving the insurance sector, we draw on the combination of our specialist insurance and best practice internal audit knowledge. We are currently managing the Internal Audit Department of one of the top ten Insurance Groups in Ireland.
Compliance Risk Management
The area of compliance is likely to receive more and more focus within the insurance industry given current market and regulatory trends. Our Compliance Risk Management (CRM) services help clients meet both external and internal regulatory requirements. We can identify your current compliance risks, build leading-edge compliance programmes, manage the compliance infrastructure, and measure and monitor actual practices--so that your company meets the highest standards.
Strategic Risk Services
Our Strategic Risk Services (SRS) specialists work closely with senior management to clarify and articulate an organisation's overall business objectives and the strategies identified to achieve those objectives. We then work with management to identify and assess the key risks that can jeopardise achievement of the organisations’ goals, evaluate the likelihood of occurrence and potential impact, assess the strategies in place to mitigate those exposures, and identify and prioritise additional or alternative risk mitigation strategies needed. Our SRS specialists incorporate our proven Objective Risk Control Alignment methodology together with our wide insurance industry experience to partner with management to design, implement and embed a thorough enterprise-wide risk management architecture within the organisation.
For more about PwC Insurance Services, visit our global insurance site
