A Commitment to Specialization
insurance
Founded in 2000, Veris Consulting, LLC, provides highly specialized accounting, financial, and survey services in particular market niches. The name Veris reflects the cornerstone of our services—integrity and objectivity—and was derived from “verify” and the Latin for “truth.”
Veris’ operations have grown considerably since our formation and today consist of forensic accounting and litigation support, outsourced internal auditing and accounting, information technology consulting and assurance services, and technology-based survey and research services. Veris serves a diverse clientele throughout the United States, as well as clients in Europe and the Caribbean. Services are provided from regional offices in Metropolitan Washington, DC; Metropolitan New York; and Columbus, Ohio.
As part of our formation, Veris acquired certain practice areas of Johnson Lambert & Co., a niche-focused CPA firm created in 1986 by Veris’ founder, Larry Johnson. Recently, we have made further acquisitions from that firm. We expect to continue expanding our resources and service areas as opportunities arise that we believe are consistent with our strategic vision: to provide value and an unparalleled quality of service by concentrating on specialized market niches, remaining committed to technical leadership in those market niches and applying an entrepreneurial spirit that seeks out opportunities in a rapidly changing world.
The management of Veris will continue to dream in color and act in black and white.
regulators, outside counsel and other interested parties in assessing the nature, causes and effects of many of the largest insurance insolvencies experienced in the United States.
standard setting leadership The establishment of accounting principles and financial statement disclosures for insurance companies has historically been the province of the Financial Accounting Standards Board (FASB), the American Institute of CPAs (AICPA) and the National Association of
insurance
Insurance Commissioners (NAIC). The FASB and AICPA have dealt with measurements under generally accepted The insurance
accounting principles, whereas the NAIC has dealt
industry is unique and demands a specialized focus
with the development and use of what is referred to as
from the professionals who serve it. The underlying
statutory accounting principles.
economics of the industry involve receipt of funds today in the form of premiums and an obligation to disburse
Since the late 1980s, Veris executives have been actively
funds over a long period of time in the future. The
involved in the standard-setting process by, among other
types of assets that best match the liabilities assumed
things, serving on the AICPA’s Insurance Companies
by insurers and the measurement of those liabilities are
Committee, Accounting Standards Executive Commit-
particularly complex.
tee, Insurance Liaison Task Force and, most recently, its Insurance Expert Panel.
The insurance industry is heavily regulated, including restrictions on the types of assets that can be acquired,
In addition to serving on these standard-setting commit-
the manner in which a company conducts business with
tees, our executives have served as chairpersons or
its policyholders, the prices that it charges for its product
members of a variety of task forces, including those that
and the specific accounting principles that are required to
have issued the authoritative guidance dealing with
provide regulators and other users with appropriate
the audit of property and casualty insurance company
financial measurements.
loss reserves, the accounting for reinsurance arrangements that do not transfer risk and the application of
The insurance industry has been a long-standing focus
generally accepted accounting principles to mutual
of Veris, and prior to that by those Veris executives
life insurance companies. Experience of our executives
who were affiliated with Johnson Lambert & Co. Our
has also included technical positions at the AICPA and
professionals have served a leadership role in the devel-
the Independence Standards Board.
opment of the industry’s technical accounting and financial measurement principles. We have also been heavily involved in a variety of regulatory issues, primarily concerning evaluation of regulatory accounting and the measurement of solvency in connection with insurance
Veris Consulting, LLC
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companies that failed. Our expertise has been sought by
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Our commitment to participation in the standard-setting process continues today through our active role in the AICPA and its liaison with the NAIC. When our clients consult with us or engage us as experts in connection with financial reporting issues, they do not receive an interpretation of what someone else thought, meant or wrote. Rather, our advice comes from having been actively involved in the development of the principles that govern that financial reporting.
regulatory expertise
ins
Each state oversees the insurance companies domiciled there. The laws and regulations of individual states impact not only the way business is conducted by insurance companies, but also the manner in which they account for those operations. It is imperative that professionals who serve the needs of the insurance industry be well versed in the nature and specifics of state regulation, as well as the regulatory process. Through a wide array of consulting engagements involving the evaluation of failed insurance companies, as well as our ongoing commitment
connection with insurance company failures. That
to leading the development of industry accounting
analysis inevitably involves the creation of but-for world
principles, the executives of Veris are uniquely able
scenarios in addition to an understanding of the actions
to meet those needs.
of regulators and others specific to a particular insolvency.
Veris has served regulators in California, Ohio, Penn-
True to our commitment to bring integrity and objectivity
sylvania, Kentucky, Kansas, Illinois, Rhode Island,
to each of our engagements, Veris has on other occasions
Connecticut, Iowa and Missouri, as well as regulators
provided consulting and expert services in the defense
in the government of Bermuda. Our assistance to these
against assertions made by regulators. When assertions
regulators has been provided in response to many of
of error in financial statements are made, or when the
the largest failures in US history.
conduct of third parties is challenged, those assertions and challenges must be evaluated by competent profes-
Veris has frequently conducted analyses of damages
sionals who will call it as they see it. That impartiality
that might be asserted against a variety of parties in
defines the practice and professionals of Veris.
Veris Consulting, LLC
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surance â€œâ€Śour advice comes from having been actively involved in the development of the principles that govern financial reporting.â€?
reinsurance
asserting improper financial reporting. Veris has been actively involved in the conduct of these investigations.
Reinsurance involves contractual arrangements between insurance companies. Many of these contractual arrange-
Accounting principles for reinsurance arrangements have
ments become the subject of disputes as to whether and to
evolved over time. Evaluating the economic substance
what extent underlying claims should be the responsibility
of reinsurance arrangements, as well as the contractual
of the reinsurers. More recently, a major issue with these
obligations that have been created as a consequence of
contractual arrangements is whether insurance risk has
these arrangements, has required significant judgment.
been transferred from one party to the other and whether
Professionals at Veris have, for several years, played
the accounting for these contractual arrangements has been
a leadership role in the evolution of these accounting
in compliance with the applicable accounting principles.
principles and the development of guidance to preparers
The issue of risk transfer has become the focus of many
of financial statements. In fact, the current authoritative
federal and state investigations and has led to many
guidance that identifies the appropriate accounting
restatements of financial statements and litigation filed
for reinsurance arrangements that do not transfer
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insurance risk was prepared by a task force chaired by
have been the subject of our analysis have ranged from
Larry Johnson, President and CEO of Veris.
relatively straightforward property- or warranty-related claims to complex catastrophes involving extensive
When we provide consulting and analytical services to a
property damage and substantial loss of life. We have
particular reinsurance arrangement, we base our services
provided reports and testimony resulting from our audits
on an in-depth knowledge of the development of the
to a variety of arbitration tribunals.
accounting standards. We can tell you what the guidance means because we wrote it. Separate from the consulting services regarding risk
outsourcing
transfer, we have provided expert assistance and testi-
Organizations that master resource allocation are more
mony in a multitude of circumstances involving reinsur-
competitive. They achieve greater financial success. To
ance disputes. That assistance has included examining
improve bottom line results and to permit executives to
the underlying support for claims reported by ceding
focus on growing market share and controlling costs,
companies, as well as evaluating the claims adjudica-
they increasingly look outside their own companies for
tion practices of those ceding companies. We have also
specialized expertise.
provided expert testimony about financial representations and reporting made by the parties to a reinsurance
In his comprehensive discussion of corporate decision-
arrangement in proceedings that sought to rescind those
making, Straight From The Gut, Jack Welch, former CEO
reinsurance arrangements.
of GE, writes:
A substantial amount of our claims-related assistance
Don’t own a cafeteria: Let a food company do it. Don’t run a print shop: Let a printing company do that. It’s
has been on behalf of London reinsurers; we’ve also
understanding where your real value added is and
provided significant assistance to a major multi-national
putting your best people and resources behind that.
Swiss insurance organization.
Back rooms by definition will never be able to attract your best. We converted ours into someone else’s front
claim audits Independent determination of the validity of claims
room and insisted on getting their best. That worked for us so many times. This is what outsourcing is all about.
incurred by an insurer is frequently needed. This need
Veris has developed specialty resources specifically
might stem from a corporate governance matter and the
designed to help companies focus on their strengths
assessment of the effectiveness of claims processing
and take advantage of ours. Our professionals have the
controls and procedures, or it might result from disputes
necessary knowledge and experience in full-service
with reinsurers. Many of our executives have extensive
internal accounting and financial management services;
experience conducting audits of insured claims, includ-
comprehensive internal audit services; the identification
ing experience performing independent audits of insur-
and assessment of risks and controls related to information
ance companies, working for insurance companies or
technology; and the construction and use of customized
providing outsourced services to insurance companies.
business surveys and data research.
Measuring the validity of claims generally includes a determination of the applicability of coverage and verification of documentation supporting the nature and amounts of those claims. The types of claims that
Veris Consulting, LLC
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VERIS CONSULTING, LLC www.verisconsulting.com
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