At the center of insurance, there is an estimation of risk, and a monthly premium assigned to a customer based on that risk. In addition to the estimated risk and actual premium basis, the premium of a policy is also influenced by the auditor’s bias, applicable business rates, and proper classifications. But, an insurance company’s estimation is just that – an estimation. Because of all these complex factors, as many as half of all business owners have been overcharged at some point during their audit process. So how has insurance auditing nowadays changed the degree of premium discrepancy?
In the case of general liability insurance, the auditor examines payroll, cash disbursements, accounts payable to subcontractors, tax records, gross sales, and many more aspects. However, despite the multitude of quantitative data involved, this method is still susceptible to the auditor biases previously mentioned. However, with modern technology, a less biased and more efficient approach is being offered as an alternative.
Rather than a person manually auditing every policy, companies like AdvoQates have integrated AI to audit insurance policies. Firstly, using AI enables insurance premiums to better utilize predictive analysis. By having the AI compute the numbers and calculate the risk, there is a far reduced likelihood of inaccuracies and expensive premium increases due to human error.
Similarly, AI detects policy abnormalities, boosts data accuracy, and increases statistical reliability. AI technology also has the ability to predict premium trends and uncover real-time business shifts, which is even more important than the former. This means that the premium can not only be judged accurately now, but is incredibly unlikely to have significant premium changes throughout the policy.
But how exactly does AdvoQates work for you? Firstly, their auditing team becomes the primary point of contact for the auditor, which ensures clear communication and lessens the burden on you from the beginning. Then, the team gathers all necessary documents, and reviews all the classifications to analyze possible deductions and exemptions for any potential cost savings. After analysis, all the documentation and analysis are compiled and submitted to the auditor, which works twofold. Not only does it address problems in the audit but preemptively provides answers that could potentially arise and cause delays for the auditing process.
Ultimately, whether you’re a multinational corporation or a startup business just taking off, taking advantage of insurance auditing AI can help you ensure your business isn’t being overcharged for insurance. With the assistance of a team of experts as well, choosing AdvoQates as your insurance premium audit company is an easy choice for your business.
