The Auditor General’s Audit Work Plan included a review of the City’s administration of the insurance and risk management program. This is the first time this program has been the subject of an Auditor General review. This review was selected based on the importance of the program in the context of risk management at the City and also because of the significant funds expended in the area of risk management.
The objective of this audit was to review the adequacy and effectiveness of current practices for the management of the City’s insurance and risk management program, with a view to identifying opportunities for improvements and cost savings.
We have made 20 recommendations to address improvements that will impact the nature and method of obtaining insurance, claims processing, legal costs and information processing systems. Certain of the recommendations may result in cost impacts, although the complexities of the City’s insurance arrangements preclude us from quantifying these amounts. Of the recommendations where savings can be quantified, we estimate that savings of approximately $600,000 per year are achievable.