The applicability of management audits within the insurance services sector

Abstract

The business arena is changing at an accelerating pace. Companies have to adjust their strategy to face the unknown. Furthermore, there is a need for more information than that found in the audited financial statements. Management Audits are a systematic examination of any management system. Management audits can be used to assess critically any business process and provide evidence on which to base action. The main objective of this study is to provide an insight on the applicability of management audits in the local insurance services sector. Furthermore, management audits were proposed as a tool for evaluating and improving management performance in the insurance services sector. This was achieved by referring to feedback from interviews with Managing Directors, Chief Executive Officers and operators being principals, agents and brokers. The local insurance sector is receptive to the idea of a management audit. Internal management audit exercises are performed in a limited form. Thus, the introduction of a management audit would not be a novelty. Whatever the route, it seems logical that the need for additional information about management's performance will eventually be met.