This research seeks to determine how the implementation of the COSO internal control system influences the reduction of financial failure among insurance companies that are publicly traded. A descriptive analytical method was employed to meet the objectives of the study. The independent variable, which is the COSO internal control systems, was evaluated using a questionnaire, while the dependent variable, financial failure, was measured through the KIDA model by analyzing the financial statements of the insurance companies in the study sample to gather financial failure metrics. The study focused on 17 insurance companies listed on the stock exchange, with the sample comprising 15 companies for which data was accessible for the year 2022. The study’s questionnaire was distributed to a random selection of financial managers, accountants, and auditors from the listed insurance firms. Out of 300 questionnaires sent out, 245 were returned, and 225 were considered valid for analysis. The statistical analysis results showed a significant impact from the implementation of the COSO internal control system, which includes components such as information and communication systems, control environment, risk assessment, control activities, monitoring, and follow-up, in mitigating financial failure among the insurance companies evaluated using the KIDA model. The study puts forth several recommendations, with the most crucial being: investing in modern technology and advanced accounting information systems to improve transparency and internal control, as well as providing ongoing training for employees to boost the effectiveness of these systems.