Description:
An inspection is an official examination or review. The term 'onsite' means that the inspection takes place wherever the subject of the inspection happens to be located. In the insurance sector, supervisory authorities perform onsite inspections of insurers and intermediaries. Inspections sometimes extend to other entities that can affect the operations of insurers and intermediaries, such as affiliated companies and providers of outsourced services. A full-scale onsite inspection is a wide-ranging look at the finances and operations of an insurer. It can greatly assist the supervisory authority in arriving at a comprehensive assessment of the insurer's risk profile, viability, and compliance with requirements. Full-scale inspections can consume a lot of supervisory resources. A focused inspection looks at selected aspects of an insurer's finances or operations. They can often be performed more quickly and with fewer resources than a full-scale inspection, which is particular important if a specific supervisory concern has arisen and needs to be investigated. The flexibility to use both full-scale and focused inspections, as the situation may require, enables a supervisory authority to use available resources effectively and efficiently