Insurance premium auditing has a complicated history, and the auditing process has moved through several iterations.  In the past, the insurance carrier completed the audit using estimates of insurance exposure to calculate the final premium.  Other factors, such as auditor bias, proper classifications, and rates that apply to the business, also influenced the final premium.

Now, the insurance carrier hires or contracts an auditor, who then reaches out to a business in need of an audit.  Auditors review various records, such as payroll, cash receipts, and certificates of insurance.  Once these documents have been evaluated, the carrier completes a final audit and issues a statement, which determines whether or not the business receives a bill or credit. 

However, a new form of auditing is growing more popular and marks the future of insurance premium audits.  AI is on the rise and adds features to the process that boost efficiency.  For example, AI allows for increased flexibility, as audits can occur virtually.  AI also helps detect anomalies, improve evidence-based classification, and increase data reliability. 

These advancements in the insurance premium auditing process help businesses avoid unnecessary expenses.  For instance, AdvoQate has developed an auditing process using AI, which has helped businesses save thousands and sometimes millions of dollars.