Citizens Property Insurance Corporation Audit Committee Meeting Report: August 27
Aug 31, 2009
The Citizens Property Insurance Corporation (“Citizens”) Audit Committee met on August 27, during which Citizens’ Office of Internal Audit (“OIA”) reported that work on its 2009 Audit Plan may conclude during the first quarter of 2010.
Additionally, the OIA is devoting resources to address an internal employee misconduct reporting program called TellCitizens, for which it monitors complaint handling. Administration of this program is being transitioned to the Corporate Compliance division.
It was reported that a Request for Proposal for an FWCJUA external auditor will be issued prior to the expiration of the current contract, which expires at the end of 2009.
The OIA is continuing to make progress in developing a sustainable internal audit department for Citizens, which includes drafting a OIA Procedures Handbook, an Internal Audit Policy and a Corporate Internal Control Policy.
Audits of Citizens’ ethics and conflict of interest policies have been completed. Resulting suggestions are in the process of being implemented.
It was noted that Citizens is experiencing a high volume of typically-costly sinkhole claims.
Citizens’ Chief Financial Officer reported that Citizens could sustain $16 billion in claims if a major storm were to hit Florida.
The CFO also said that, once Citizens’ rates become actuarially sound level, it will be able to better manage its exposure by purchasing reinsurance from the private sector.
To view the agenda and other materials for this meeting, click here.
Should you have any questions or comments, please contact Colodny Fass.
To unsubscribe from this newsletter, please send an email to email@example.com.