Predictive Modeling for Premium Audit

Carriers can use a premium audit model to prioritize audits most likely to require a large premium adjustment and concentrate audit resources on those accounts first. Prioritizing audits will result in addressing those discrepancies faster. Even moving average receivables forward 30 days can be worth millions of dollars to the bottom line of a carrier with a sizable audit base. Additionally, using these premium discrepancy predictions proactively at the underwriting stage of the process can result in better underwriting decisions and increased customer retention, since there will be fewer end-of-policy cash-flow surprises for the customer and agent.