EU Audit Directive

The UK implementation of the EU Audit Directive, in June 2016, is having a significant impact on all insurance businesses. The Directive brought four main provisions into force:

  • mandatory audit rotation;
  • restrictions on non-audit services;
  • changes to the form and content of the audit report; 
  • new requirements for the role of the audit committee.
While the Directive covers a wide range of public interest entities (PIEs), it is important to be aware that all insurance companies in the EU are considered PIEs. This is irrespective of whether they are listed or not, and irrespective of whether they are life, non-life, insurance or reinsurance.

Key changes are outlined below.