Insurance premium auditing is important when it comes to determining insurance estimates. However, in the past, audits have been cumbersome to companies. Insurance premium auditing was annually done by the carrier. These audits were calculated based on estimates of insurance exposure, which includes estimated payroll, business operations, and losses and mod.
Unfortunately, this type of auditing often leads to over and underestimates. Both cases cause issues. For example, if the estimate is too low, the company will receive a bill for the additional premium. If the estimate is too high, the company will receive a refund, usually in the form of a policy credit. This has led 25-50% of business owners with insurance policies to potentially be overcharged at some point in their audit process.
Luckily, the auditing process is changing, and new options are available. AI has begun to play a role in auditing, which has allowed for paradigm shifts, flexible visits, and predictive analytics. AdvoQates is an example of a company that is working to help businesses save money in the auditing process. It does so by putting the business back in control of the auditing process, ensuring clear communication and mitigating errors and overcharged premiums.
While insurance premium auditing has been inefficient in the past, new methods can change the game. Programs that use AI and focus on centering the business can streamline the process, and are the future of insurance auditing.
