Premium auditors assess insurance risk and assist in setting premiums for insurance products. They work closely with underwriting and loss prevention departments and may also have administrative duties related to human resources.
A premium auditor often works with high-dollar projections for insurance risk in order to help an insurance company or other employer manage those risks. Some financial experts define premiums as payments involved in some types of customer transactions. In the insurance industry, premium is generally defined as the payment made to an insurance company in exchange for risk coverage. Premium auditors generally assist in assessing premiums and assessing risks and liabilities for the company offering the policy or insurance product.
As a professional who specializes in finance, the work of a premiums auditor is essential to ensure that premiums are in line with higher-level risk projections for a set of policies or insurance products. To ensure that premiums are set correctly and that insurance projects are well calibrated to make a profit, premium auditors typically engage in field auditing, resolving audit issues and maintaining audits. Premium auditors often work closely with underwriting departments to ensure the right initiatives are taken to assess risk and liability. They may also work with loss prevention departments or other internal teams.
In addition to their technical roles, premium audit professionals can be part of the face of an insurance company. They may be asked to represent the company in various scenarios or situations. One is as a facilitator to update loss control or prevention departments on field research or on how policies or insurance products are actually used.
In general, premium auditors research each individual policy to find out whether the payout matches the risk taken by the company. This is done for both small individual policies and larger financial policies, for example where an insurance company underwrites the risk for a financial product. All types of insurance policies and premiums require professional premium auditing and assessment, and these individuals are an integral part of an assessment team for a company that sells insurance or is involved in that field.
In addition to the above, the premium auditor may sometimes have some type of task or duty related to human resources, recruitment or training. These professionals can train beginners after they have proven themselves as competent auditors or participate in team meetings on the strategy of adding new auditors to an existing team. These types of administrative functions are often secondary to the work that premium auditors do in the field, where close inspection of premiums, underwriting methods, and demographic or real-time data helps show whether an insurance policy, product, or initiative will prosper.
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