Lean Six Sigma Methodologies Applied to the Internal Control of Insurance Companies

The evolution of internal control systems brought also out the fact that risks have evolved, especially in the insurance and reinsurance sector, as outlined below. More often than not, the management of the insurance and reinsurance entities asks the questions: how would it be better? to set up more controls or to target control better? The opinions are divided. Some authors argue that, at present, control being structured in accordance with the information systems, the priority should be given to the legitimacy of these risk-related controls. The issue we want to talk about does not refer to what controls do, what it controls, but rather if it is tailored to the specifics of insurance entities and if it is effective. Even though internal control provides only reasonable assurance, quality-based reflections have proven in terms of effectiveness that they leave room for a fake reassuring logic, namely risk control. In this article, we want to briefly outline some aspects of the Lean Six-Sigma approach as an opportunity to reconcile operational and risk control objectives into a common performance target.