Hybrid Workers Comp Premium Audits Now More Popular
Hybrid workers comp premium audits seem to be rising in popularity very quickly. I noticed this term popping up on websites and premium auditing company booths at conferences. Two years ago, an auditing company at a conference started explaining this new (?) method of performing audits. I had written this definition on hybrid premium audits some time ago.

Almost all employers now have scanning and email abilities. The need for in-person on-site audits by insurance carriers will very likely incur a reduction over the next few years. Some employers will require an in-person audit regardless.
The main driver behind hybrid workers comp premium audits is the cost of obtaining an audit of an employer’s operations. Costs such as travel are easily reduced using this type of audit. As carriers’ profit and investment incomes have fallen, any method that will reduce overhead has to be heavily considered overall.
Hybrid workers comp premium audits are actually nothing new. The carriers and audit companies are basically mimicking the practice that has been in place for years with companies that perform Workers Comp premium audits for employers. As I mentioned before, certain employers and organizations will require an in-person audit. I see the need for in-person on-site audits shrinking rapidly.

Even the small employers have now become very sophisticated in their record keeping. Many employers can provide spreadsheets of almost any type on demand. I think insurance carriers and the auditing companies they hire will very likely move to hybrid audits for employers that had the same premium auditor on a past audit, unless of course the employer has changed some of their job functions.
I have never been too keen on telephone audits as an alternative to on-site premium audits. We have seen too many mistakes made on this type of audit. Self-reporting audits made by the employers have also caused many problems.
I will write another post on this area within a year. I will look back over the year to see if hybrid audits are more popular.
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