Annual insurance audit: a 30-minute checklist for executives

Introduction

For a Swiss SME, the annual insurance audit is more than just a box to tick: it's an opportunity to examine your protection against current and future risks, optimize your costs, and strengthen your governance. This Swiss SME insurance audit checklist allows you, in approximately 30 minutes, to identify key areas of focus, document the decisions to be made, and develop a clear action plan.

This article provides you with a structured method for conducting your audit, what to document, questions to ask, common mistakes to avoid, and mini case studies to illustrate concrete scenarios.

Why an annual insurance audit?

An annual insurance audit helps to align your coverage with your business, risk parameters, and internal governance:

• Verify that your policies actually cover your current exposures (employees, assets, liabilities, cyber risks, etc.).

• Ensure the regulatory and contractual compliance of your insurance policies.

• Document changes in activity and necessary adaptations.

• Identify discrepancies, duplicates or gaps in your portfolio.

• Prepare quantifiable decisions with your CFO, HR or broker.

Even if the obligations of accounting or financial audit do not apply directly to the audit of insurance for an SME, the exercise is part of a good practice of governance and risk management.

1. Audit preparation (minutes 1–5)

1.1 Define the objective of the audit

Before you begin, decide what you want to check: regulatory compliance, suitability of guarantees according to the activity, consistency of coverage levels, cost of premiums, performance of insurers, or preparation for a renegotiation.

1.2 Gather the key documents

Careful documentation facilitates audits and decision-making. You must collect:

• Copies of all current insurance policies.

• Appendices, amendments and insurance certificates.

• Claims history over the last 3-5 years.

• Details of all beneficiaries and related group contracts (e.g., life insurance).

• Tables of premiums paid and due dates.

(See the box “What needs to be documented” below)

Box – What needs to be documented

• Policy name, insurer, contract number

• Main and supplementary guarantees

• Limits and deductibles per risk

• Premium amounts and due dates

• Contract change history

• Claims filed and decisions made

1.3 Define the scope and stakeholders

Include in your audit: the financial officers (CFO), HR according to the policies related to personnel (accident insurance, mandatory LAA), the broker or insurer, and, if necessary, your legal advisor.

2. Review of policies and benefits (minutes 5–15)

2.1 Identify all existing policies

List each policy, its purpose, the risk covered, and the insured value. For an SME, the main categories are generally: property/buildings, civil liability, occupational pension, accident insurance (LAA), cyber coverage, and vehicle fleets.

2.2 Verify the adequacy of the guarantees

For each one:

• Are the limits sufficient given your current risks?

• Are the deductibles consistent with your risk tolerance and budgets?

• Do the exclusions or special conditions affect your protection?

2.3 Consistency with recent activity

Has your company changed its activities, legal structures, employees, premises, technologies, or markets? Each change can impact your insurance needs.

Mini case study 1 – New business activity and liability insurance

A small service company has launched an online service. During the audit, the team discovered that the company's liability insurance policy does not cover damages related to digital services. This issue needs to be addressed to avoid a gap in coverage in the event of a claim related to the new service.

2.4 Check expiry dates and renewals

Note each policy expiry date and notice period conditions to avoid unfavorable automatic renewals.

3. Compliance and legal requirements (minutes 15–20)

3.1 Insurance obligations in Switzerland

Some types of coverage are mandated by Swiss law, such as occupational accident insurance (LAA) for employees. Make sure they are in place and compliant.

Note: requirements vary depending on sector and staffing levels .

3.2 Contractual Compliance

Ensure that the policies comply with the obligations imposed by your partners (landlords, clients, authorities). Liability insurance may be required by a supply contract.

4. Analysis of claims and insurer performance (minutes 20–25)

4.1 Claims History

Analyze past claims: frequent, costly, recurring? This review helps determine if your coverage is effective or if preventive actions are necessary (training, security, protocols).

Document for each claim: date, nature, cost covered, impact on premiums.

4.2 Performance evaluation of insurers and brokers

Review the responsiveness, clarity of decisions, dispute resolution, and suitability of the advice received. This will inform your decisions regarding renewal or competitive bidding.

Mini case study 2 – Recurring uncovered claim

Water damage claims were filed twice in two years. The audit revealed a high deductible and that the insurer had refused certain coverages due to restrictive clauses. The decision was made to renegotiate the coverage limits or change partners to optimize risk management.

5. Decisions and action plan (minutes 25–30)

5.1 Identify immediate actions

For each point identified: update a policy, correct a deductible, add a guarantee, renegotiate the terms, or plan a competitive bidding process.

5.2 Quantify the key trade-offs

Where possible, express decisions in terms of financial impact: expected premium savings, cost of coverage extensions, deductible changes.

5.3 Document and communicate

Prepare a brief internal audit report outlining findings, decisions made, responsibilities, and deadlines. This report serves as evidence of governance and risk management for senior management.

Guidelines and checklist (actionable)

| Step | To do |

| Audit preparation | Gather policies, claims, premiums |

| Review of guarantees | Check limits, exclusions, consistency of activity |

| Compliance | Legal and contractual obligations |

| Claims | Analyze frequency, insurer response |

| Decisions | Short-term action plan and KPIs |

Common mistakes and how to avoid them

• Superficial audit without documenting decisions : Archive all documents, decisions and justifications.

• Ignoring changes in activity : Any development should trigger a review of coverage.

• Lack of market comparison : Even if you are satisfied, regular competitive bidding is a good practice.

• Do not involve the CFO/HR : These functions provide essential numerical and compliance benchmarks.

Questions to ask your insurer/broker

1. What guarantees specifically cover the risks related to our current business?

2. Are our limits sufficient in light of sector standards?

3. Which business changes are not currently covered?

4. Which exclusions should we pay attention to?

5. How do our past claims influence our future premiums?

6. Can we optimize our franchises without increasing our residual risk?

7. What is the performance of your claims management (delivery times, success rate)?

8. Do you offer prevention or risk reduction services?

9. What market benchmarks can you provide for our policies?

10. When was the last comparative analysis of our coverage?

Conclusion

A structured annual insurance audit helps SME executives and CFOs manage their risks, optimize their coverage, and document their decisions. In 30 minutes, with this checklist, you can identify key issues, make clear decisions, and strengthen your risk governance.

To go further, schedule a thorough review with your broker or insurance consultant for the complex or critical points identified.