Insurance companies registered with the National Association of Insurance Commissioners (NAIC) are required to file audited financial statements unless an exemption is granted.
In 2019, 223 different auditors reviewed financials for 3,950 insurance firms. In comparison, in 2020, 219 different auditors reviewed financials for 3,967 insurance companies. This is a notable drop from the 241 accounting firms that audited 3,946 insurance companies in 2018.
Changes to Insurance Audit Market Between 2019 and 2020
The top 10 firms auditing insurers experienced minimal change between 2019 and 2020. PWC and EY remained first and second, respectively. KPMG and Deloitte traded third and fourth place, with KPMG losing 22 clients and Deloitte gaining 11.
Other changes in the top 10 between years: Crowe and RSM swapped places, and Baker Tilly replaced BDO in the number 10 spot.
When expanding our view of the top auditors to the top 25 of 2020, we can see that the year-over-year changes are mostly minimal. There are, of course, exceptions. For example, Baker Tilly gained 18 clients, while Crowe and BDO each lost 11 and 10, respectively.
One word to sum up the year-over-year changes in the insurance audit market: consistency. Outside of the top 10, most firms either gained or lost a small number of clients.
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