Businesses are audited to ensure the insurance premiums they pay are appropriately representing the risk they face. The audit is usually carried out once a year following the expiration of a policy. This process examines documents such as cash disbursements, tax records at the state and federal level, and payroll information. Carried out via email, phone, or online it is overseen by the auditor.
After gathering and reviewing all information, auditors issue a final statement. This confirms whether the company has to pay a bill or be issued a credit. Businesses receive extra premium bills if the initial estimates of their premium rates are too low. If they are too high, they receive checks or credits as a refund. Inaccurate estimates are unfortunately a very common occurrence. In fact, 25-50% of business owners may have been overcharged for their insurance at some point.
Artificial intelligence (AI) technology is increasingly used to help auditors increase the accuracy and efficiency of their insurance premium auditing process. AI is able to help forecast premium trends, improve data accuracy, and find anomalies by using predictive analytics. It is also able to expedite communication across different platform types, including video conferences, phone calls, auto paper mailings, and web-based portals.
