Premium Adequacy & Leakage Sentinel · Brief 02
Audit-Premium Leakage
Audit Premium Due vs Billed on the six exposure-audited programs · the uncaptured true-up, traced
The one line you configure
When audited exposure comes in above the bound estimate, how much audit premium do we never bill back?
In a nutshell
Only 6 programs carry audit premium (the exposure-audited lines). Across them, $169.5M is due and $152.3M billed — 89.9% capture — leaving $17.2M uncaptured. Capture is worst on Contractors GL at 89.3%, which also carries the largest single gap at $4.1M — the same program softening on rate.
At a glance
What · where the $169.5M due actually lands
Of $169.5M due, $152.3M was captured and $17.2M leaked — Contractors GL, Public Entity Package and Municipal Law Enforcement carry $11.2M of it.
Where · uncaptured audit premium by program
Six exposure-audited programs carry the entire $17.2M. Contractors GL leads on both dollars and worst capture; the rest sit at 90.0%.
Where · due vs billed across the six exposure-audited programs
Read across: every audited program bills ~90% of what audited exposure owes; Contractors GL is the one below 90% — the natural first recovery target.
Audit Premium Capture % = Billed ÷ Due
Uncaptured Audit Premium = Due − Billed. Where audited payroll and sales came in above the bound estimate, the true-up was earned but never fully invoiced.
So what
Only the six exposure-audited programs carry audit premium, and together they leave $17.2M uncaptured at 89.9% capture. Contractors GL is worst on capture (89.3%) and largest on dollars ($4.1M) — the natural first recovery target, and the same program softening on rate.
The points that matter
The leak lives in six programs
Only the exposure-audited lines carry audit premium, and $17.2M of it went uncaptured at 89.9% capture.
$17.2MuncapturedContractors GL is worst on both counts
It captures 89.3% — the only program below 90% — and carries the largest single gap at $4.1M.
89.3%worst captureIt is the same program softening on rate
The audit leak and the rate inadequacy both concentrate on Contractors GL — one fix, two problems.
$4.1MContractors GL gapQuestions it already answers
Which programs even carry audit premium?
Six exposure-audited lines — Contractors GL, Public Entity Package, Municipal Law Enforcement, Propane & Fuel Dealers, Pest Control and Reel Media & Entertainment.
Where should the audit desk start?
Contractors GL — worst capture at 89.3% and the largest gap at $4.1M, and the same slice softening on rate.
Is 89.9% capture a one-off or the run-rate?
Run-rate — the gap holds near $17.2M across the window, so the reconciliation needs to run every audit cycle.