During 2017, there were 4,184 insurance companies registered with the NAIC (National Association of Insurance Commissioners).
Unless a company receives an exemption from filing an audited financial statement, doing so is required. Only around 100 companies received such an exemption in 2017. While not every company disclosed the reason for an exemption, a few that did included:
- an exemption under the Organizational Hardship exemption
- an exemption because the Company ‘has no outstanding risk under insurance policies and orginated no business during 2017’.
There are 261 auditors who audit these insurance companies. Together, the Big Four audit almost 60% of the market. PwC, with 683 (18%) insurance clients, audits the most number of companies. A close second is EY with 628 (16%) clients. Taking the number five spot, and leading the way for non-Big Four firms, is Johnson Lambert.
Rounding out the top ten are BKD, Crowe, RSM US, BDO USA, and Plante & Moran.
A large portion of insurance companies are part of a larger group of insurance companies which typically helps the group offset liabilities and over exposure.
During 2017, there were 615 registered groups (an increase of two since our last analysis). Insurance groups can have several auditors named due to the fact that individual companies that comprise a particular group can have a different auditor.
Ernst & Young had a hand in auditing 108 insurance groups. EY is followed by PwC with 89, KPMG with 76, and Deloitte with 58. Johnson Lambert rounds out the top five with 29 groups audited, and was the leader outside of the Big Four firms.
Finally, when looking at market share by business line, the Big Four rank in the top five auditors for 3 out of 6 business lines (Health, Property & Casualty, and Life, Accident, & Health).
More than half of the 4,184 insurance companies classified themselves under Property & Casualty insurance. Of these companies, PwC lead with 437 audits.
Audit Analytics’ insurance database includes normalized financial, auditor, and demographical information from over 4,300 NAIC registered Insurers since 2010. Key data points include assets, revenue, and auditor of record.
For more information about our Insurance database, email us at email@example.com or call (508) 476-7007.