We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Does a Premium Auditor Do?

By A. Leverkuhn
Updated Mar 03, 2024
Our promise to you
Practical Adult Insights is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At Practical Adult Insights, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

A premium auditor generally works on high dollar projections for insurance risk in order to help an insurance company, or other employer, to manage these risks. Some financial experts define premiums as payouts involved in some kinds of customer transactions. In the insurance industry, the premium is most usually defined as the payment made to an insurance company in exchange for coverage of risk. Premium auditors generally assist in valuing premiums, and otherwise assessing risk and liability for the company offering the insurance policy or product.

As a specialized kind of finance professional, the work of a premium auditor is critical for making sure that premiums are in line with top-level risk projections for a set of policies or insurance products. To assure that premiums are set correctly, and that insurance projects are well calibrated for profits, premium auditors typically engage in field auditing, resolving audit questions and otherwise maintaining audits. Premium auditors often work closely with underwriting departments to make sure that the right initiatives are taken to assess risk and liability. They may also work with loss prevention departments or other internal teams.

Aside from their technical duties, premium auditor professionals may be part of the face of an insurance company. They may be asked to represent the company in various scenarios or situations. One of these is as a facilitator in bringing loss control or prevention departments up to speed on field research, or on how insurance policies or products are actually used.

In general, premium auditors research each individual policy to find out whether the payment corresponds to the risk undertaken by the company. This is done for small individual policies, as well as larger financial policies, for example, where an insurance company underwrites risk for a financial product. All sorts of insurance policies and premiums require professional premium auditing and assessment, and these individuals are integral parts of a valuation team for a company selling insurance or otherwise involved in this field.

In addition to the above, the premium auditor might sometimes have some sorts of tasks or duties related to human resources, recruiting, or training. These professionals may train beginners after they have proven themselves as competent auditors, or engage in staff meetings over the strategy for adding new auditors to an existing team. These kinds of administrative roles are usually secondary to the work that premium auditors do in the field, where close inspection of premiums, underwriting methods, and demographic or real-time data help to show whether an insurance policy, product, or initiative will thrive.

Practical Adult Insights is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Discussion Comments
Practical Adult Insights, in your inbox

Our latest articles, guides, and more, delivered daily.

Practical Adult Insights, in your inbox

Our latest articles, guides, and more, delivered daily.