Proactive audits boost U.S. insurers’ premiums by 18%
Insurance companies that conduct thorough premium audits for workers’ compensation and general liability policies recovered up to 18 percent in additional revenue over the past 18 months, according to Pro Global. The firm found that carriers lose money when businesses underreport payroll figures, misclassify workers, or fail to meet state rating requirements.
Robert Sherman leads audit operations at Pro Global in the United States and said specialist audits help insurers reduce disputes while collecting accurate premiums. Premium audits verify that businesses report correct payroll amounts and worker classifications for final insurance costs. Private carriers wrote $41.6 billion in workers’ compensation premiums last year, down 3.2 percent from the previous year.
The sector maintained a combined ratio of 86.1 percent despite rising medical and indemnity claim costs. Workplace injuries declined 6 percent in 2024 as safety programs reduced claim frequency. Medical treatment expenses increased faster than standard price indexes, driven by higher service use rather than price changes alone.
