IPTM7250 - Audit of insurers: records to be maintained

Regulations describe what records insurers need to keep, for how long, and HMRC’s powers to obtain information and inspect the records maintained by the insurer.

The relevant regulations are SI 1997/265 – Life Assurance and Other Policies (Keeping of Information and Duties of Insurers) Regulations 1997.

The insurer must keep sufficient records to enable HMRC to:

• verify the terms of the policy or contract
• verify any certificate delivered under the reporting requirements in ICTA88/S552, and
• confirm whether there has been, or is likely to be, any failure in the insurer’s obligations to report relevant events.

Documents to be made available

Although not an exhaustive list, the auditors will want to see, or have available on request, the following documents:

• the policy or contract schedule or, if not possible, the information that would be included on the document
• transaction details including all premiums paid and money withdrawn
• details of any changes to the policy, including changes to the life assured or policy owner
• full details of any chargeable events including dates and values and any relevant correspondence
• information and/or documentation to confirm the issue of a chargeable event certificate and the details shown on that certificate.

Retention of records

In general, records should be retained for a period of three years from the termination of the policy or contract.

However, where a new policy is

• issued in substitution for the policy or on the maturity of the policy following the exercise of an option in the policy, or
• connected to the policy for the purpose of the qualifying policy rules – see IPTM8090

the time limit for retention of records is extended to three years from the termination of the final policy issued in substitution for or connected with earlier policies.