Description of insurance organization’s business processes from the perspective of internal control procedures

Abstract

Subject. The article is devoted to essential conceptual, methodological provisions of internal control of business processes and its development. Objectives. The aim is to describe business processes to understand the operations and their sequence in insurance company’s activities, investigate control procedures used in the internal control of insurer's business processes, determine the strength of control procedure and optimize the internal control of the insurance business. Methods. The study employs economic and mathematical methods, methods of grouping, statistical research, economic analysis, comparison. Results. I provide a detailed description of business processes of the insurance company, link control procedures to each business process, determine the specific weight of every control procedure in a particular business process. The extended description of business processes in the insurance business in the context of control procedures enabled to calculate the indicator of strength of insurer's control procedure. Conclusions. The effectiveness of business processes of any insurance company largely depends on the control activities of the insurer. Optimally selected control procedures, which are the most appropriate for a particular process, represent the optimization of internal controls of insurance activities.