Our Audits

Otter Audit conducts delegated authority audits of coverholders and TPAs worldwide. We perform audits for over 60 insurers in the Lloyd’s and London market as well as domestic Canadian insurers.

We've developed an approach that delivers proportionate and actionable audit outcomes, effectively managing the risk in the delegated authority distribution model. Our in-house standard ensures clear, accessible details for stakeholders at all levels.

Our auditors are professional delegated authority auditors with diverse insurance backgrounds. Our auditors consistently deliver high quality audit reports on time. This commitment to quality and reliability has made us Lloyd's number one coordinated auditor for 2025.

We deliver good reports on time.

We conduct a variety of audits.

When an insurer appoints an agent to underwrite, handle claims or manage complaints on its behalf, that agent has contractual, legal and regulatory obligations to the insurer. Under agency law, the insurer is liable for the actions of their agent. The insurer hires us to audit the agent's performance. This audit provides assurance and identifies areas for risk improvements.

Delegated Underwriting

Firms with delegated authority are called coverholders or MGAs. Delegated underwriting authorizes a firm to sell insurance policies on behalf of that insurer.

Claims TPA

An insurer may outsource all or part of the claims handling process to to a third party administrator (TPA). When a TPA has delegated claims authority, it may be known as a DCA. Additionally, a coverholder or managing general agent (MGA) may also have claims authority.

Complaints

An insurer may give a firm the authority to handle both informal and formal complaints on their behalf. This may include offering redress and managing escalations to the relevant regulatory authority.

Run-off

When an insurance program is closed and no new business can be written, the account is run-off. Run-off accounts need close monitoring to ensure appropriate outcomes for customers and proper allocation of premiums, claims and commissions.

Pre-bind

Before granting a delegated authority, an insurer will review a firm's risk framework to assess its suitability for handling the delegated authority.

We audit against a range of insurer and customized scopes. The most common scope is the Lloyd's Market Association delegated authority audit scope.

An otter sitting at a desk looking at an iPad in a claims firm.

We have expertize in underwriting, claims, compliance and complaints. Please advise if there's something specific you'd like us to focus on.

Our proactive approach to regulatory changes ensures our reports are up-to-date, reflecting the latest requirements.

Our relaxed, flexible style of conducting audits help those being audited feel at ease and comfortable sharing their knowledge of their business.

We pride ourselves on delivering high quality reports on time with advice that strengthens the relationship between the insurer and their agent.

Our Audit Team

Our audit team is lead by Alex Jones (Director), Karen Maka (Head of Operations) and Victoria Catling (Delegated Authority Audit Coordinator) who support our audit clients including handling specific or complex requirements.

The audit team is based in Ontario and are ready to visit firms across Canada either in person or remotely. Otter Audit will combine the knowledge of our Canadian auditors with the quality output of our UK business to deliver a high performing and independent audit firm with fluent French language capabilities.

Alex Jones

Director

Karen Maka

Head of Operations

Victoria Catling

Delegated Authority Audit Coordinator

Steve Paras

AUDITOR

James Kirton

AUDITOR

What to expect with our audit process

Our audit process is consistent yet flexible. Ideally, we have a three month lead up to an audit, although this is not a requirement. The steps to arrange and complete an audit is as follows:

Scope and quote

After receiving your audit request, we will review and provide a quote. We aim to keep a standard quote for similar audits, so you know what to expect.

Date and setting

We will reach out to the auditee, provide a brief overview of the audit and estimate the duration. This is a collaborative process with the auditee.

Confirmation of requirements

We confirm all information of the audit requirements to produce a contract certain audit instruction. This will collate information from emails, scope and conversations with the client.

The audit

Whether on-site, remote or hybrid, our auditor will conduct various interviews, review processes and complete file reviews in line with the scoping requirements.

Report writing

Our auditor will prepare a clear and concise written report that summarizes the flow of the business and key controls. This will include actionable recommendations and is subject to QA.

Delivery

We pride ourselves on ensuring timely delivery of all reports

Feedback / queries

We continuously develop our approach. Any feedback is welcomed.

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Words from our satisfied clients

We have worked with Otter for several years now and thoroughly enjoy working with all the team. They are one of the most well organised audit firms I have ever dealt with and we have received every single report on time! The auditors delve into a lot of detail during the audits, and if there is something to be found they will find it. Aside from the audits, the team at Otter are a lovely bunch of people and we look forward to another successful year of working with them.

Carolyn Fisher, Munich RE

Delegated Authority Audits