Pay as You Go and audits work together
A significant benefit of Pay as You Go is aligning payroll data with actual premiums. This translates to fewer surprises for both policyholders and agents during audits. Real-time adjustments minimize the need for sizeable end-of-policy term corrections, resulting in a more predictable and stable billing experience.
Let’s dispel the myth that Pay as You Go eliminates the need for premium audits. Audits remain crucial for ensuring accurate, fair, and compliant insurance premiums. In fact, Pay as You Go contributes to smoother and more efficient audits.
Benefits of Pay as You Go
MEM’s Pay as You Go billing offers flexibility and precision in premium payments. Unlike traditional methods, Pay as You Go adjusts premiums based on real-time payroll data. This ensures businesses only pay for the coverage they use. It can benefit both agents and policyholders through:
- Improved cash flow management: Smaller, more accurate payments make it easier for businesses to manage their cash flow.
- Reduced surprises: Adjustments based on actual payroll minimize the risk of significant premium changes at the end of the policy period.
Pay as You Go streamlines the audit process
While Pay as You Go audits still require access to original payroll and financial records to verify reported data, the system itself streamlines the process in several ways:
- Payroll data verification: Audits are a final check on the payroll information used for Pay as You Go calculations, ensuring accuracy and completion.
- Compliance and accuracy: Audits guarantee all payroll and classification details are reported correctly, adhering to insurance regulations.
- Reconciliation and adjustments: Audits help identify and address discrepancies between estimated and actual payroll, guaranteeing you pay the correct premium.
For more information, visit Pay as You Go.