Amica Insurance: Comprehensive Coverage and Customer-Centric Services

Amica Mutual Insurance Company, commonly known as Amica, is a mutual insurance company headquartered in Lincoln, Rhode Island. Founded in 1907, Amica has grown to become one of the largest personal lines insurers in the United States, providing a wide range of insurance products, including auto, home, life, and marine insurance. Amica is renowned for its commitment to customer service, consistently ranking among the highest-rated insurers in industry surveys. With a focus on long-term relationships, Amica is dedicated to providing its policyholders with peace of mind and financial security.

Amica’s customer-centric approach is evident in its exceptional claims handling process. The company’s experienced adjusters are committed to handling claims promptly and fairly, prioritizing the needs of policyholders. Amica’s policyholders benefit from a dedicated claims representative, providing personalized assistance throughout the claims process. By combining its commitment to customer service with its strong financial performance, Amica has established itself as a trusted and reliable insurance provider.

In addition to its personal lines insurance offerings, Amica also provides commercial insurance for businesses of all sizes. The company’s comprehensive commercial insurance policies are tailored to meet the unique needs of various industries, providing businesses with the protection they need to thrive. Amica’s commercial insurance portfolio includes coverage for property, liability, workers’ compensation, and fleet vehicles, ensuring that businesses can operate with confidence.

History of Amica Insurance

Amica Insurance is a mutual insurance company headquartered in Providence, Rhode Island. It is the oldest mutual insurance company in the United States, having been founded in 1907. Amica provides a wide range of insurance products, including auto, home, life, and business insurance.

Early History

Amica Insurance was founded in 1907 by a group of Rhode Island businessmen, including Arthur J. Pothier, Ernest W. Olson, and Herman J. Carew. The company’s original name was the Automobile Mutual Insurance Company of Providence County, and its initial focus was on providing auto insurance to local residents and businesses. In 1913, the company changed its name to Amica Mutual Fire Insurance Company, and began offering fire insurance in addition to auto insurance. By 1919, the company had expanded to offer a full range of property and casualty insurance products.

Expansion and Growth

Amica Insurance continued to expand its operations throughout the early 20th century. In 1923, the company opened its first branch office outside of Rhode Island, in Boston, Massachusetts. By 1945, the company had operations in all six New England states, and in 1956, it opened its first branch office outside of New England, in New York City. In 1959, the company changed its name to Amica Mutual Insurance Company to reflect its expanded product offerings.

The 1960s and 1970s were a period of significant growth for Amica Insurance. The company expanded its operations to include all 50 states and the District of Columbia, and introduced a number of new products, including homeowners insurance, mariners insurance, and life insurance. In 1970, the company became a publicly traded company, and in 1975, it acquired the Colonial Penn Life Insurance Company, making it one of the largest life insurance companies in the United States.

Recent History

In the 1980s and 1990s, Amica Insurance continued to expand its product offerings and operations. The company introduced a number of new products, including business insurance, long-term care insurance, and pet insurance. In 1993, the company acquired the Chubb Group of Insurance Companies, making it one of the largest property and casualty insurance companies in the world. In 2007, the company celebrated its 100th anniversary, and in 2014, it was named the “Most Trusted Property and Casualty Insurer” by J.D. Power and Associates.

Today, Amica Insurance is a Fortune 500 company with over $10 billion in annual revenue. It is one of the largest mutual insurance companies in the United States, and provides insurance products to over 2 million customers nationwide. The company is known for its strong financial stability, excellent customer service, and commitment to community involvement.

Growth and Expansion

Amica Mutual Insurance Company began as a small, local insurer in Providence, Rhode Island, in 1907. Over the years, the company has grown and expanded significantly, becoming one of the largest and most respected insurance companies in the United States.

Early Growth

In its early years, Amica focused primarily on providing auto insurance to residents of Rhode Island. The company’s reputation for providing excellent customer service and fair prices quickly spread, and Amica began to grow rapidly. By the 1950s, Amica had expanded its operations to neighboring states, including Massachusetts and Connecticut.

Expansion into New Lines of Business

In the 1960s and 1970s, Amica expanded into new lines of business, including homeowners insurance, personal umbrella insurance, and life insurance. This diversification helped Amica to become a more comprehensive insurer and appeal to a broader range of customers.

Geographic Expansion

Throughout the 1980s and 1990s, Amica continued to expand its geographic reach, opening offices in new states across the country. By the early 2000s, Amica had become a national insurer, providing insurance products to customers in all 50 states.

Acquisition of The Hanover Insurance Group

In 2015, Amica acquired The Hanover Insurance Group, a leading specialty insurer with operations in the United States and Canada. This acquisition significantly increased Amica’s presence in the commercial insurance market and provided the company with new capabilities and expertise.

Continued Growth and Innovation

Today, Amica remains one of the largest and most respected insurers in the United States. The company continues to grow and innovate, providing a wide range of insurance products and services to customers across the country. Amica’s focus on customer service, financial stability, and innovation has been key to its success over the past century.

Products and Services

Amica Mutual Insurance Company offers a comprehensive suite of insurance products and services tailored to meet the diverse needs of individuals, families, and businesses.

Personal Lines

Amica offers a range of personal insurance products designed to protect individuals and their families. These products include:

Auto insurance
Homeowners insurance
Renters insurance
Condo insurance
Umbrella insurance
Life insurance
Disability insurance

Business Lines

Amica also provides insurance solutions for businesses of all sizes. These solutions include:

Commercial auto insurance
Commercial property insurance
Business interruption insurance
Workers’ compensation insurance
Cyber liability insurance
Professional liability insurance
Errors and omissions insurance

Additional Products and Services

In addition to its core insurance products, Amica also offers a range of additional products and services, such as:

Roadside assistance
Identity theft protection
Home warranty
Pet insurance
Financial planning
Investments

Claims Process

Amica prides itself on its customer-centric claims process. When a customer files a claim, they are assigned a dedicated claims adjuster who will guide them through the process and ensure that their claim is handled efficiently and fairly. Amica has consistently received high ratings for its claims service, demonstrating its commitment to providing exceptional customer experiences.

Financial Strength

Amica Mutual Insurance Company is a financially strong and stable company. It has been consistently rated A+ (Superior) by A.M. Best, demonstrating its ability to meet its financial obligations to policyholders. Amica’s strong financial position enables it to provide competitive rates and peace of mind to its customers.

Customer Service

Amica is known for its exceptional customer service. The company has consistently ranked highly in customer satisfaction surveys, reflecting its commitment to providing personalized and responsive support to its policyholders. Amica’s agents are knowledgeable and professional, and they are always willing to go the extra mile to assist customers with their insurance needs.

Automobile Insurance

Amica Mutual Insurance Company offers a comprehensive range of automobile insurance policies to protect drivers and their vehicles. These policies provide coverage for a wide variety of potential risks, including:

Liability Coverage

Liability coverage protects the policyholder if they are found legally responsible for injuries or property damage caused to others in an accident. Amica offers three types of liability coverage: bodily injury liability, property damage liability, and uninsured/underinsured motorist coverage.

Collision Coverage

Collision coverage pays for repairs to the policyholder’s vehicle after an accident with another vehicle or object. Amica offers three deductible options for collision coverage: $250, $500, and $1,000.

Comprehensive Coverage

Comprehensive coverage pays for repairs to the policyholder’s vehicle if it is damaged or stolen in a non-collision event, such as a fire, vandalism, or natural disaster. Amica offers a $50 deductible for comprehensive coverage.

Medical Payments Coverage

Medical payments coverage pays for medical expenses incurred by the policyholder or their passengers in an accident, regardless of who is at fault. Amica offers four coverage options for medical payments coverage: $1,000, $2,000, $5,000, and $10,000.

Personal Injury Protection (PIP) Coverage

Personal injury protection (PIP) coverage pays for medical expenses and lost wages for the policyholder or their passengers in an accident, regardless of who is at fault. Amica offers four coverage options for PIP coverage: $1,000, $2,000, $5,000, and $10,000.

Uninsured/Underinsured Motorist Coverage

Uninsured/underinsured motorist coverage protects the policyholder if they are involved in an accident with a driver who is uninsured or underinsured. Amica offers three coverage options for uninsured/underinsured motorist coverage: $25,000, $50,000, and $100,000.

Rideshare Coverage

Rideshare coverage provides additional protection for drivers who use their vehicles to transport passengers for ride-sharing services such as Uber and Lyft. Amica offers three coverage options for rideshare coverage: $50,000, $100,000, and $200,000.

Rental Reimbursement Coverage

Rental reimbursement coverage pays for the cost of a rental car if the policyholder’s vehicle is damaged in an accident and needs to be repaired. Amica offers three coverage options for rental reimbursement coverage: $25 per day, $50 per day, and $75 per day.

Towing and Labor Coverage

Towing and labor coverage pays for the cost of towing the policyholder’s vehicle to a repair shop if it is disabled in an accident or other covered event. Amica offers two coverage options for towing and labor coverage: $50 per occurrence and $100 per occurrence.

Awards and Recognition

Amica Mutual Insurance Company has consistently received high ratings and recognition for its financial strength, customer service, and ethical practices.

Financial Strength

Amica has consistently earned “A+ (Superior)” ratings from A.M. Best, the leading insurance rating agency, indicating its exceptional financial strength and ability to meet policyholder obligations.

Customer Service

Amica is renowned for its outstanding customer service, consistently ranking among the highest-rated insurers in J.D. Power studies. The company has received numerous awards, including:

J.D. Power 2023 U.S. Auto Insurance Study: Highest in Customer Satisfaction among Auto Insurers
J.D. Power 2023 U.S. Homeowners Insurance Study: Highest in Homeowner Satisfaction Among Midsize Insurers
J.D. Power 2023 U.S. Personal Lines Insurance Digital Experience Study: Highest in Digital Experience for Auto and Home

Ethical Practices

Amica adheres to the highest ethical standards in all aspects of its operations. The company has received numerous accolades for its ethical practices, including:

Ethisphere Institute 2023 World’s Most Ethical Companies (16th consecutive year)
Insurance Business America 2023 Top Insurance Carriers for Ethics
Reputation Institute 2023 Global RepTrak® 100: Ranked 42nd Most Reputable Company in the World

These awards and recognitions are a testament to Amica’s unwavering commitment to delivering exceptional value to its policyholders, employees, and communities.

Future Outlook and Growth Prospects

Amica Mutual Insurance Company is well-positioned to continue its strong growth trajectory in the years to come. The company’s solid financial foundation, customer-centric approach, and innovative product offerings provide a competitive edge in the marketplace.

1. Continued Growth in Personal Lines

Amica expects to continue its growth in personal lines, particularly in auto and homeowners insurance. The company’s focus on safety, customer service, and competitive pricing has resonated with consumers, and it is likely to continue to drive growth.

2. Expansion into Commercial Lines

Amica is also looking to expand its commercial lines business. The company has a strong reputation in the personal lines market, and it is leveraging that expertise to develop innovative commercial insurance products.

3. Digital Transformation

Amica is investing heavily in digital transformation to improve its customer experience and operational efficiency. The company is implementing new technologies, such as artificial intelligence and machine learning, to streamline its processes and provide personalized service.

4. Acquisitions and Partnerships

Amica is open to acquisitions and partnerships that can accelerate its growth. The company has a proven track record of successful integrations, and it is likely to continue to pursue strategic opportunities.

5. International Expansion

Amica is exploring international expansion opportunities. The company has the financial resources and experience to enter new markets, and it is actively evaluating options.

6. Product Innovation

Amica is committed to product innovation. The company is constantly developing new products and features to meet the evolving needs of its customers. This focus on innovation is likely to continue to drive growth.

7. Customer Service Excellence

Amica prides itself on its exceptional customer service. The company has a long history of providing personalized attention to its customers, and it is committed to maintaining this high level of service.

8. Strong Financial Performance

Amica has a strong financial performance that provides a solid foundation for growth. The company has consistently reported strong financial results, and it is expected to continue to do so in the future.

9. Stable and Experienced Leadership

Amica has a stable and experienced leadership team that is committed to the company’s long-term success. The team’s expertise and industry knowledge provide a strong foundation for future growth.

10. Market Share Growth

Amica has a growing market share in the insurance industry. The company’s strong brand, competitive pricing, and excellent customer service have all contributed to its market share growth. This trend is expected to continue in the years to come.

Comparison to Other Insurance Companies

1. Financial Stability

Amica has consistently received strong financial stability ratings from reputable agencies such as A.M. Best (“A++ Excellent”) and Standard & Poor’s (“AA- Very Strong”). These ratings indicate that Amica has ample financial resources to meet its obligations to policyholders.

2. Customer Service

Amica prides itself on providing exceptional customer service. It consistently ranks highly in independent surveys, earning praise for its responsiveness, proactive communication, and personalized attention.

3. Claims Handling

Amica is known for its efficient and fair claims handling process. Customers report experiencing minimal delays, clear communication, and satisfactory settlements. The company’s Claims Satisfaction Index score of 95% is a testament to its commitment to customer satisfaction.

4. Homeowners Insurance

Amica offers a comprehensive range of homeowners insurance options tailored to different needs and budgets. Its policies include coverage for dwelling, personal property, liability, and additional living expenses. Amica’s homeowners insurance premiums are competitive and often lower than industry averages.

5. Auto Insurance

Amica provides various auto insurance coverages, including liability, collision, comprehensive, and uninsured/underinsured motorist protection. Its rates are competitive, and it offers discounts for safe driving habits and multiple policies.

6. Life Insurance

Amica offers term life insurance, whole life insurance, and universal life insurance designed to provide financial security for loved ones. Its life insurance products are competitively priced and come with a variety of riders to enhance coverage.

7. Business Insurance

Amica caters to businesses of all sizes, providing customizable insurance solutions for property, liability, and workers’ compensation. Its business insurance policies are designed to protect businesses from a wide range of risks.

8. Specialty Insurance

Amica offers specialized insurance products for unique situations, including marine insurance, coastal homeowners insurance, and classic car insurance. These specialized policies provide tailored coverage to meet the specific needs of these niche markets.

9. Long-Term Care Insurance

Amica’s long-term care insurance helps individuals prepare for the potential costs associated with aging and chronic illnesses. Its policies cover skilled nursing care, assisted living expenses, and home healthcare services.

10. Discounts and Rewards

Amica offers various discounts and rewards programs to policyholders. These include safe driving discounts, multi-policy discounts, loyalty rewards, and referral bonuses. The company’s commitment to affordability makes it a cost-effective choice for many customers.

11. Technology and Innovation

Amica embraces technology to enhance the customer experience. Its mobile app allows policyholders to manage their accounts, file claims, and access roadside assistance. The company is continuously exploring innovative ways to improve its products and services.

12. Community Involvement

Amica actively supports communities where it operates. The company contributes to local charities, sponsors community events, and encourages employee volunteerism. Its commitment to making a positive impact is evident through its numerous charitable initiatives.

13. Environmental Sustainability

Amica recognizes the importance of environmental sustainability. It actively reduces its carbon footprint by using renewable energy sources, conserving resources, and implementing energy-efficient practices. The company is dedicated to operating in a responsible and sustainable manner.

14. Ethical Standards

Amica operates with a strong ethical foundation. It adheres to the highest standards of integrity, transparency, and fair play. The company’s commitment to ethical practices has earned it the trust and respect of customers and the insurance industry.

15. Award Recognition

Amica’s exceptional performance has been recognized with numerous industry awards and accolades. These include the J.D. Power Award for outstanding customer satisfaction, the Ward’s 50th Anniversary Award for excellence in auto insurance, and the Insurance Institute for Highway Safety (IIHS) Automotive Safety Leadership Award.

16. Customer Testimonials

Customer testimonials provide valuable insights into Amica’s service and products. Positive reviews consistently praise the company’s responsiveness, professionalism, and fair claims handling. Many customers express their satisfaction with Amica’s competitive rates and personalized approach.

17. Detailed Financial Analysis

Amica’s financial stability is supported by strong underwriting practices, a conservative investment strategy, and a robust reinsurance program. The company’s underwriting profit margin has consistently exceeded the industry average, indicating its ability to generate revenue from its insurance operations. Amica’s investment portfolio is well-diversified and primarily invested in fixed-income securities, minimizing risk and ensuring a stable stream of investment income. The company’s reinsurance arrangements provide additional financial protection against catastrophic losses and enhance its ability to meet policyholder obligations.

Market Share

Amica’s market share in the United States is relatively small, with the company accounting for approximately 2% of the national auto insurance market. However, Amica holds a much larger share in certain regions, particularly in Rhode Island, where it is the largest auto insurer with a market share of approximately 20%.

Customer Base

Amica’s customer base is primarily made up of individuals and families who seek reliable and affordable insurance coverage. The company’s focus on providing excellent customer service has resulted in high levels of customer satisfaction and loyalty.

Demographics

Amica’s customers are typically middle-income to affluent households with an average age of around 45 years old. The company also has a significant presence among homeowners, with many customers purchasing both auto and homeowners insurance from Amica.

Geographic Distribution

The majority of Amica’s customers reside in the northeastern United States, particularly in Rhode Island, Massachusetts, and New Hampshire. However, the company also has a growing presence in other regions, including the Midwest and Southeast.

Customer Acquisition

Amica primarily acquires new customers through independent agents. The company has a network of over 2,000 agents who sell Amica’s products throughout the country. Amica also employs a direct marketing strategy through which it reaches out to potential customers through mail, email, and online advertising.

Customer Retention

Amica boasts exceptionally high customer retention rates. The company’s dedication to providing excellent customer service, fair pricing, and competitive coverage has resulted in many customers staying with Amica for years. Additionally, Amica’s Lifetime Renewal Guarantee ensures that customers’ policies will not be canceled or non-renewed due to a single claim.

Customer Satisfaction

Amica has consistently received high marks for customer satisfaction. According to J.D. Power’s 2022 U.S. Auto Insurance Study, Amica ranked highest in overall customer satisfaction among major auto insurers for the 10th year in a row. The company’s focus on providing excellent customer service and personalized solutions has resulted in a loyal and satisfied customer base.

Brand Reputation and Trust

Brand History and Longevity

Amica Mutual Insurance Company has built a solid reputation over its 115-year history. The company was founded in 1907 and has consistently provided insurance services to its customers. Its longevity is a testament to its commitment to excellence and customer satisfaction.

Customer Satisfaction

Amica consistently ranks highly in customer satisfaction surveys. In J.D. Power’s 2023 U.S. Auto Insurance Study, Amica ranked highest in overall customer satisfaction for the eighth consecutive year. This high level of customer satisfaction is a result of Amica’s focus on providing excellent service, competitive rates, and a wide range of coverage options.

Financial Stability and Reliability

Amica is financially strong and reliable. The company has received an “A+ (Superior)” rating from AM Best, a leading rating agency for the insurance industry. This rating indicates that Amica has a strong ability to meet its financial obligations to its customers.

Awards and Recognition

Amica has received numerous awards and recognitions for its brand reputation and trustworthiness. These include:

* Forbes “America’s Best-In-State Insurance Companies”
* Kiplinger’s Personal Finance “Best Homeowners Insurance Companies”
* Barron’s “50 Most Philanthropic Companies in the U.S.”

Community Involvement

Amica actively supports its local communities through charitable giving and volunteerism. The company has a long history of giving back to the communities it serves, which has helped to enhance its brand reputation and build trust.

Customer Advocacy

Amica customers are often highly vocal advocates for the company. They frequently share their positive experiences with others and recommend Amica to their friends and family. This word-of-mouth marketing has played a significant role in building Amica’s brand reputation and trust.

Transparency and Honesty

Amica is committed to transparency and honesty in all its dealings with customers. The company provides clear and accurate information about its products and services, and it is always willing to answer customer questions and concerns. This transparency and honesty have helped to build trust with customers.

Innovation and Adaptability

Amica is constantly innovating and adapting to meet the changing needs of customers. The company has introduced new products and services, such as its online claims filing system and its mobile app, to make it easier for customers to do business with Amica. This innovation and adaptability have helped Amica to maintain its competitive edge and continue to attract new customers.

High-Quality Products and Services

Amica offers a wide range of high-quality products and services to meet the needs of its customers. The company’s products and services are designed to provide superior protection and value. This high quality has helped Amica to build a strong and loyal customer base.

Personalized Service

Amica is known for its personalized service. The company takes the time to get to know its customers and their individual needs. This personalized service has helped Amica to build strong relationships with its customers and create a sense of trust and loyalty.

Blockchain and Distributed Ledger Technology

Blockchain is a revolutionary technology that is transforming the way we store and share data. It is a secure, decentralized, and transparent digital ledger that can be used to record transactions between two or more parties in a verifiable and permanent way. Distributed ledger technology (DLT) refers to the underlying infrastructure that supports blockchain networks, allowing for the secure and efficient sharing of data across a network of computers.

Key Features of Blockchain and DLT

Blockchain and DLT offer several key features that make them well-suited for a wide range of applications:

**Decentralization:** Blockchain networks are not controlled by a single entity, which eliminates the risk of censorship or manipulation.
**Transparency:** All transactions on a blockchain network are visible to all participants, ensuring accountability and reducing the risk of fraud.
**Immutability:** Once data is stored on a blockchain, it is extremely difficult to alter or delete it, providing a high level of security and data integrity.
**Security:** Blockchain networks are secured by cryptography, making them highly resistant to hacking and data breaches.
**Efficiency:** Blockchain and DLT can automate processes and reduce the need for intermediaries, resulting in increased efficiency and cost savings.

Use Cases for Amica Insurance

Amica Insurance is exploring the potential of blockchain and DLT to transform its operations and enhance the customer experience:

**Claims Processing:** Blockchain can streamline and accelerate the claims process by providing a secure and transparent platform for sharing data between insurers, customers, and repair shops.
**Fraud Prevention:** Blockchain’s immutability and transparency can help prevent fraudulent claims by creating an audit trail that can be easily verified.
**Risk Management:** Blockchain can enable Amica Insurance to access and analyze data from a wider range of sources, improving risk assessment and underwriting decisions.
**Customer Relationship Management:** Blockchain can enhance customer engagement by providing a secure and transparent platform for sharing information and providing personalized services.
**Data Security:** Blockchain’s security features can protect sensitive customer data from unauthorized access and data breaches.

Benefits for Customers

The adoption of blockchain and DLT by Amica Insurance offers numerous benefits to customers:

**Faster and more efficient claims processing**
**Reduced risk of fraud**
**More accurate and personalized insurance products**
**Enhanced transparency and accountability**
**Increased trust and confidence in Amica Insurance**

Regulatory Considerations

As blockchain and DLT are emerging technologies, there are still regulatory uncertainties surrounding their use in the insurance industry:

**Data Protection:** Regulators are concerned about the privacy and security of customer data stored on blockchain networks.
**Smart Contracts:** The enforceability and legal implications of smart contracts, which are self-executing contracts stored on blockchain networks, need to be clarified.
**Interoperability:** Regulators are encouraging the development of interoperable blockchain platforms to facilitate data sharing and collaboration.

Future Outlook

Blockchain and DLT hold immense potential for transforming the insurance industry. As regulatory frameworks evolve and technology matures, Amica Insurance is well-positioned to leverage these technologies to enhance its operations, improve the customer experience, and remain competitive in the rapidly evolving insurance landscape.

Audit and Internal Review

Amica’s Audit and Internal Review function is responsible for providing independent assurance to the company’s Board of Directors and senior management about the adequacy and effectiveness of the company’s internal controls. The function also conducts risk assessments, reviews financial and operational controls, and provides recommendations for improvements.

Internal Audit

The Internal Audit department is responsible for conducting independent audits of Amica’s operations, including its financial, operational, and compliance controls. The department also provides consulting services to Amica’s management team on a variety of risk management and internal control issues.

External Audit

Amica’s external auditor is PricewaterhouseCoopers LLP (PwC). PwC is responsible for conducting an annual audit of Amica’s financial statements and for issuing an audit opinion on the company’s financial reporting. PwC also provides Amica with other assurance services, such as reviews of the company’s internal controls and risk management practices.

Audit Committee

Amica’s Audit Committee is comprised of four independent directors who are responsible for overseeing the company’s financial reporting process and internal controls. The committee meets regularly with management and the internal and external auditors to discuss the results of audits and other financial reporting matters.

Internal Control

Amica has a system of internal controls designed to provide reasonable assurance that the company’s financial and operational objectives are achieved. The company’s internal controls are based on the Committee of Sponsoring Organizations of the Treadway Commission (COSO) internal control framework.

Risk Management

Amica’s risk management function is responsible for identifying, assessing, and mitigating the company’s risks. The function works closely with the company’s business units to develop and implement risk management strategies.

76. Internal Control over Financial Reporting

Amica’s internal control over financial reporting is designed to provide reasonable assurance that the company’s financial statements are free from material misstatement, whether due to error or fraud. The company’s internal control over financial reporting is based on the COSO internal control framework and includes the following components:

Control environment

Risk assessment

Control activities

Information and communication

Monitoring

Amica’s internal control over financial reporting is subject to ongoing evaluation and testing by the company’s internal audit department and external auditors.

77. Control Environment

The control environment is the foundation for all other components of internal control. It sets the tone for the organization and influences the control consciousness of its employees. Amica’s control environment includes the following elements:

Integrity and ethical values

Board of directors

Management’s philosophy and operating style

Organizational structure

Assignment of authority and responsibility

Internal audit function

External audit function

Code of conduct

78. Risk Assessment

The risk assessment process is used to identify, assess, and prioritize the risks that may affect the achievement of Amica’s objectives. Amica’s risk assessment process is based on the COSO risk assessment framework and includes the following steps:

Identify risks

Assess risks

Prioritize risks

Develop risk response strategies

Implement risk response strategies

Monitor risk response strategies

79. Control Activities

Control activities are the policies and procedures that are designed to prevent, detect, and correct errors or fraud. Amica’s control activities include the following:

Authorization of transactions

Record-keeping

Reconciliation of accounts

Review of performance

Physical controls

80. Information and Communication

Information and communication are essential to the effective functioning of internal control. Amica’s information and communication systems are designed to provide timely and accurate financial and operational information to the company’s management and employees.

81. Monitoring

Monitoring is the process of ongoing evaluation and testing of the effectiveness of internal control. Amica’s monitoring process includes the following activities:

Internal audit function

External audit function

Management review

Self-assessment

82. Internal Audit Function

The internal audit function is an independent, objective assurance function within Amica. The internal audit function is responsible for providing assurance to management and the Board of Directors on the effectiveness of the company’s internal control system.

83. External Audit Function

The external audit function is performed by PricewaterhouseCoopers LLP (PwC). PwC is responsible for conducting an annual audit of Amica’s financial statements and for issuing an audit opinion on the company’s financial reporting.

84. Management Review

Management review is the process by which management evaluates the effectiveness of internal control. Management review includes the following activities:

Review of internal audit reports

Review of external audit reports

Review of self-assessment

Development of action plans

Monitoring of action plans

85. Self-Assessment

Self-assessment is the process by which employees evaluate the effectiveness of the internal control activities within their own areas of responsibility.

86. Continuous Improvement

Amica is committed to continuous improvement of its internal control system. The company’s internal control system is subject to ongoing evaluation and testing by the company’s internal audit department and external auditors. Amica also participates in the American Institute of Certified Public Accountants (AICPA) peer review program, which provides an independent assessment of the company’s internal control system.