Premium Audit Practices Study - 2014

Date:JUL 2014
Status:Complete
Cost: $2500 Add to Cart
Detail:

Over the last three years the US commercial lines market has experienced significant growth in direct premiums written (DPW). Overall commercial lines are up 16% and workers’ compensation specifically is up 34%, much of this growth related to growth in rate and exposures.

Ward Group conducted a survey to examine the structure and performance of premium audit operations amidst the growth of direct premiums written in U.S commercial lines. The data for this survey was collected in the second quarter of 2014. 

The objectives of the study were as follows:

  • Analyze frequency, type, and resources utilized to conduct premium audits
  • Determine audit costs by type of audit to provide insurers with insights into better utilizing their resources
  • Analyze staffing for various premium audit related functions, including:
-    Location of premium audit staff
-    Workloads for field auditors
-   2014 staffing projections
  • Evaluate the frequency and use of third party vendors to conduct premium audits
  • Compare the organizational structure of participants
  • Review 2013 premium audit results

The following benchmark groups were defined to provide the most meaningful segmentation of results: 

  • Overall Benchmark
  • Mono-Line Workers’ compensation Writer Benchmark
  • Multi-Line Commercial Writer Benchmark
  • Small Accounts Benchmark
  • Large Accounts Benchmark

Table of Contents:


Introduction
  • Overview
  • Benchmark Groups
  • Executive Summary
  • Profile of Participants
Key Findings
  • 2013 Audit Results
  • Audit Frequency
  • Audit Types Utilized
  • Audit Expenses
  • Premium Audit Staffing
  • Outsourcing
  • Other Business Practices
  • Premium Audit Systems
Summary of Participant Responses

Appendix
: Detailed Study Results

For more information, contact Matt Ryan at matthew.ryan@wardinc.com.

 




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