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Host

What are typical premium auditor salaries? Do some companies pay a lot more for this position than others? What does a top earner make in this field?

What skills should you learn to increase your salary?

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Mark in Orange, California

113 months ago

Host said: What are typical premium auditor salaries? Do some companies pay a lot more for this position than others? What does a top earner make in this field?

What skills should you learn to increase your salary?

Most premium auditors make 30,000 to 60,000 a year with experienced auditors making over 70,000. Company auditors (those working directly for the carriers) have decent salaries and good benefits. Most fee companies seem to hire Independent Contractors (IC's) and pay around 35-40 per hour with no expenses.

It is obtainable to make in excess of 100,000 if you want to put in the work, are efficient and computer literate.

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Mark in Orange, California

113 months ago

No, from personal experience. I have done lots of training, interviewing with multiple companies, both carriers and fee companies, training many new auditors and discussing with co-workers and others in the audit community.

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brianc@*****.*** in Tampa, Florida

110 months ago

Host said: What are typical premium auditor salaries? Do some companies pay a lot more for this position than others? What does a top earner make in this field?

What skills should you learn to increase your salary?

many independent auditors are growing their potential we have seen by cross training in loss control, the money is roughly the same at $40 to $45 an hour or by the job. The added jobs from loss control survey work helps fill in on the route that an auditor may plan to get their jobs done.

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Nikkie in Aliso Viejo, California

108 months ago

Mark in Orange, California said: No, from personal experience. I have done lots of training, interviewing with multiple companies, both carriers and fee companies, training many new auditors and discussing with co-workers and others in the audit community.

I'm interested to learn more about Premium Auditor - changing the career path. I have commercial insurance experience as CSR (license agent)in the past 5 years and have done reconciliation on the WC and GL Final Audit for the insured. I do have AA degree in accounting with 10 years experience. I've been searching for someone who is a Premium Auditor to discuss the potential. Wondering if you could provide me some insight. I see that you are in Orange County. Wondering if you would not mind to contact me via e-mail: floweraccents@yahoo.com I'm in between job at the moment due to workforce reduction since this is the soft market for the insurance industry.

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Steve in Miamisburg, Ohio

94 months ago

I have audited and from what I can see there is no money in working for a fee company, you have to work for several companies which makes your life suck, two review staffs, two sets of rules (each fee company makes up their own auditing rules on top of customer requirments, two inventories to watch. The smaller fee companies micromanage and bug you about status updates becuase they have nothing better to do. Insurance companies only use auditors in hope of premium increases and additional charges, in a bad economy the insurance companies don't want to audit because they don't want to give return premiums therefore your workload is very light, IE today's market 2010. Getting on with a carrier is extremely tough. It is a dog eat dog world, fee company work sucks because each company is competing for the business of the insurance companies. The one with the cheapest bids get the contracts, so pay cuts are VERY common to be competitive. Auditing was a great job 10 years ago but is going the way of the DO-DO, prices are competitive the insurance companies don't want to pay you for what you do do, uggg greatest job I have ever had, but there is no money to be made, therefore making it the most useless job I have ever had. Hope this helps.

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Auditing Ideas in San Jose, California

87 months ago

I've been in the claims auditing field since 2003. I also have a background in Underwriting, both in the Calif. WC industry. That said, after reading your blog, I feel that there are a lot of opportunities to tap into especially in today's economy. I've made a significant amount of money working as an expert witness on Fraud cases and other litigation. Yes, it's hard work, but it pays as much as $500/hr. Also, if you market yourself, you can work as an independent auditor, either in claims or policy auditing, and get between $100 & $125/hour. You just have to be resourceful and identify a niche market or two, making those markets your focus and sell yourself as a specialty auditor. It might require some travel, but I did it with an infant and survived the 2000 recesion and the 2008 recession.

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johnnycage in Washington, District of Columbia

87 months ago

Auditing Ideas in San Jose, California said: I've been in the claims auditing field since 2003. I also have a background in Underwriting, both in the Calif. WC industry. That said, after reading your blog, I feel that there are a lot of opportunities to tap into especially in today's economy. I've made a significant amount of money working as an expert witness on Fraud cases and other litigation. Yes, it's hard work, but it pays as much as $500/hr. Also, if you market yourself, you can work as an independent auditor, either in claims or policy auditing, and get between $100 & $125/hour. You just have to be resourceful and identify a niche market or two, making those markets your focus and sell yourself as a specialty auditor. It might require some travel, but I did it with an infant and survived the 2000 recesion and the 2008 recession.

I am currently a government auditor looking to get a job in the private sector. Premium auditing sounds like something that would be interesting and consistent with my background, however I'm not sure I want to audit for the rest of my life. How does underwriting compare to premium auditing? Can one of these careers lead to another? Any insight would be helpful. Thx.

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poopsidoo

80 months ago

Auditing Ideas in San Jose, California said: I've been in the claims auditing field since 2003. I also have a background in Underwriting, both in the Calif. WC industry. That said, after reading your blog, I feel that there are a lot of opportunities to tap into especially in today's economy. I've made a significant amount of money working as an expert witness on Fraud cases and other litigation. Yes, it's hard work, but it pays as much as $500/hr. Also, if you market yourself, you can work as an independent auditor, either in claims or policy auditing, and get between $100 & $125/hour. You just have to be resourceful and identify a niche market or two, making those markets your focus and sell yourself as a specialty auditor. It might require some travel, but I did it with an infant and survived the 2000 recesion and the 2008 recession.

Thanks for your post. I find myself out of work after 20 years in the industry with carriers. I am interested in you statement about niche areas. Can you give me some examples? Thank you.

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via in Canyon Country, California

77 months ago

how do you become a premium audit vendor. How do you get audits from the insurance companies.?

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Dan in O Fallon, Missouri

75 months ago

I agree that being an auditor with a carrier pays much better however fee company auditors have more flexibility, can work part time, etc.

Also when the economy is bad carriers still audit the same. They have compliance needs and a good carrier doesn't care about the AP/RP issues. The reason fee company auditors get less work is that the carriers will move toward voluntary or phone audits to save outsourcing money.

Long term this career field may move more auditors toward a clerical type inside job where payroll data is obtained primarily over the phone or internet.

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Troy Breiland @ theexpertnetworks.com in Cleveland, Ohio

71 months ago

I would highly recommend joining an Expert Network like BidaWhiz, Gerson Lehrman Group, or Cognolink. Expert networks are micro-consulting exchanges where experienced professsionals connect with investors, individuals and corporations looking for advice. Engagements usually take place over the phone, last 30 to 60 minutes, pay well, and a great place to network and find longer-term gigs. You can enroll with more than one network to ensure a higher utilization and give yourself more flexibility.

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Maria in Palm Coast, Florida

57 months ago

Steve in Miamisburg, Ohio said: I have audited and from what I can see there is no money in working for a fee company,

Maybe "no money" is relative. At one point I was making $52,000 a year working for a fee company.

[quote] Insurance companies only use auditors in hope of premium increases and additional charges, in a bad economy the insurance companies don't want to audit because they don't want to give return premiums therefore your workload is very light, IE today's market 2010.

For being someone that allegedly has done auditing, you don't seem to be aware that WC laws for every state require audits to be done on those policies at least every two years. In a bad economy many insurance companies will resort to self audits or phone audits in order to get done what is required by law. THAT is why your work load is lighter.

[quote] Getting on with a carrier is extremely tough.

Like with any job in this economy.

[quote]It is a dog eat dog world, fee company work sucks because each company is competing for the business of the insurance companies. The one with the cheapest bids get the contracts , so pay cuts are VERY common to be competitive.

But that's not your problem. It's up to you to do the job search and find the company that pays the most.

[quote] Auditing was a great job 10 years ago but is going the way of the DO-DO, prices are competitive the insurance companies don't want to pay you for what you do do, uggg greatest job I have ever had, but there is no money to be made, therefore making it the most useless job I have ever had. Hope this helps.

Seems you feel you've been burned but I don't. I worked for a fee company for 4 years and was laid off when the economy tanked. Now I've been rehired by them as a phone auditor. It pays a lot less but I also don't have the traveling expenses and yet I still can make close to $800 a week. That's doable.

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Tina in Panama City, Florida

14 months ago

The truth is the premium auditing is interesting work, but the pay is very unfair to auditors. On a typical job you will need to contact the insured to make an appointment (which can take many attempts), drive to/from the appointment, meet with the insured, normally there is follow up because the insured did not provide you all the required records, and then write up the report. Now, the problem is you are not allowed to bill for your time making the appointment or driving to the appointment. There is also a cap on the number of hours you are allowed to bill. From start to finish, you realistically will be putting in 6-12 hours total time but the maximum you are allowed to bill for is 2-3 hours. Rarely does it ever go above 3 hours. So, your hourly wage becomes much smaller, plus you pay for gas and put miles on your car. It is annoying because the insureds are not cooperative, you will drive to appointments that they don't show up for, and the premium audit company will send you a ton of emails (responding to them is not compensated either). You can easily work 60 hours a week doing premium audits, but you will be paid for about 25 hours. It doesn't take long to start feeling really taken advantage of.

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gamac in Cumming, Georgia

14 months ago

This is one profession that has degenerated to a pinch hitting, low credibility low satisfaction job over the last fifteen years or more. The emergence of these "independent audit companies" is the major reason for this.

There was a time when premium auditors were hired by a commercial insurance company requiring a 4 year degree background and some basic knowledge of the world of accounting. They were paid a salary comparable with underwriters, adjusters, and other insurance professionals. A company car and expense account were standard. It was a good job choice after college, and most individuals really enjoyed their work.

I think the posts above emphasize how things have changed. Today you have to wear out a personal automobile, pay your own expenses and overhead, work and drive for many unpaid hours, and make pennies as a bottom line wage.

Maybe a bright side is that the barrier to entry as an auditor has been lowered to such a large extent that someone can be hired for the job with very little knowlege and experience.

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Tina in Panama City, Florida

14 months ago

Someone above stated that the audit firm is being paid $100 - $125 per hour. So, on a typical 2 hour audit they are getting paid $200 - $250, but only giving the auditor $80. So, the company is taking about 2/3 of the income, while the auditor is putting in about 5-6 hours of work and paying expenses. Yes, the company has review costs and costs associated with management, but they are probably making a profit equal to what the auditor is being paid. Their whole goal is high volume.

I agree that this has resulted in low standards. They also have a very high turnover problem because auditors quickly get tired out from all the driving and angry for not being compensated for the majority of their time. But these companies don't care because it doesn't cost them too much to change auditors.

Personally, I think there is a major paradox in the industry. The whole point of premium auditing is the protection of workers and ensuring that those who work are covered by insurance. If an employer pays someone off payroll, they are dinged for it on the audit. But, the audit companies do not cover or protect their workers. Some go to great lengths to make it look as if you are an independent contractor, but they want to control you like you are an employee. I wish the Department of Labor would study these companies because I think if they really looked at it, there would be a major shake up in the industry. You aren't allowed to treat employees as independent contractors to avoid paying payroll taxes and covering them with insurance. You also are not allowed to pay people less than minimum wage. I have worked on audits that come dangerously close to that.

My advice to anyone wanting to get into working for these firms is to only agree to audits that are very, very close to your home. This will limit the amount of your uncompensated time driving and reduce your expenses.

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