Research On Off-site Audit System Of Life Insurance Companies

Since 1970's, Off-site audit was widely used in western countries. In China, till to the late of 1990's, it was used only in financial industry and a few other industries. But, now it is developed rapidly in many industries and branches. Off-site audit is a natural result of technological development and inevitable requirement of audit modernization. Due to its real-timeness, comprehensiveness, preventiveness and cost-saving, Off-site audit was widely used in financial, especially in insurance industry China and abroad.At present time in China, On-site audit still remain as the main way of audit supervision in the life insurance company. Because of its low efficiency, On-site audit wastes a lot of precious auditing resources. As number of corporation's subsidiaries and sub-branches increases, it becomes hard and hard for company to make supervision efficiency out of on-site audit. Off-site audit comes into a necessary substitution. Taking another prospective, how to supervise the process of corporation's operation on-real? how to find potential risk of operation in time? how to survive in a fiercely competitive market? Many life insurance corporations can't round the above questions. Off-site audit can give a relatively satisfactory solution. To a life insurance corporation, how to establish a industry-characteristic, operational and efficient off-site audit system becomes a urgent task.Analysis and synthesis are basic methods in social and scientific research, so does this paper. At first, this paper introduces the concept of off-site audit and the results of foreign and domestic theoretical research of off-site audit. Then, combining with the characteristics of internal and external environment of China's life insurance company, this paper takes life insurance company's operation risk as breakthrough point to explain necessities and objectives of carrying-out off-site audit, further, to elaborate the characteristics of off-site audit and set the principals and procedures to construct off-site audit system of life insurance company. Furthermore, based on above explanations and elaborations, this paper constructs a theoretical framework of off-site audit system from perspectives of technical measures, analytical index system and personal configuration. At last, this paper points out the real-existing gaps of off-site audit application between China and developed countries and puts forward a few of countermeasures and suggestions to lessen mentioned gaps.In summary, this paper innovatively and explicitly puts forward the viewpoints of how to establish three off-site audit systems for life insurance companies. Then, this paper illustrates the construction, usage and logical relationship of three off-site audit systems. At last, this paper gives out constructive suggestions for off-site audit network establishment and off-site audit software development.