A premium auditor works on high-dollar insurance risk projections to assist an insurance company or other employer in managing these risks. Premiums are payouts involved in certain types of customer transactions, according to some financial experts. The premium is most commonly defined in the insurance industry as the payment made to an insurance company in exchange for risk coverage. Premium auditors help the company offering the insurance policy or product value premiums and assess risk and liability in other ways.
A premium auditor’s job as a specialized type of finance professional is critical for ensuring that premiums are in line with top-level risk projections for a set of policies or insurance products. Premium auditors typically engage in field auditing, resolving audit questions, and otherwise maintaining audits to ensure that premiums are set correctly and that insurance projects are well calibrated for profits. Premium auditors frequently collaborate with underwriting departments to ensure that the appropriate risk and liability assessments are made. They may also collaborate with departments such as loss prevention or other internal teams.
Premium auditors may be part of an insurance company’s public face in addition to their technical responsibilities. They could be asked to represent the company in a variety of scenarios. One of these is as a facilitator in bringing loss control or prevention departments up to speed on field research or how insurance policies or products are used in practice.
Premium auditors look into each individual policy to see if the payment is appropriate for the risk that the company is taking. This is done for both small individual policies and larger financial policies, such as when an insurance company underwrites a financial product’s risk. Professional premium auditing and assessment is required for all types of insurance policies and premiums, and these individuals are essential members of a valuation team for a company selling insurance or otherwise involved in this field.
In addition to the aforementioned responsibilities, the premium auditor may be assigned tasks or responsibilities related to human resources, recruiting, or training. After proving themselves as competent auditors, these professionals may train newcomers or participate in staff meetings to discuss the strategy for adding new auditors to an existing team. Premium auditors’ work in the field, where they examine premiums, underwriting methods, and demographic or real-time data to determine whether an insurance policy, product, or initiative will succeed, is usually secondary to these administrative roles.