What is the ultimate goal of a premium audit in insurance?

The ultimate goal of a premium audit in insurance is to collect the correct premium that matches the actual exposure. This process involves reviewing and verifying a policyholder's records to ensure that the premium charged accurately reflects the risks and exposures associated with their insured operations.

Premium audits are critical because businesses may experience changes in their operations, such as increases or decreases in payroll, sales, or materials used, leading to a shift in the actual risk profile. By conducting an audit, the insurance company can adjust the premium accordingly, ensuring fairness and accuracy in premium charging. This not only protects the insurance company from under-collecting on premiums but also ensures that policyholders are not overpaying for coverage that doesn't reflect their current risk level.

The other choices, while they involve various facets of insurance operations, do not capture the primary purpose of a premium audit. Increasing coverage, providing discounts, or assessing market trends do not directly address the need to align the premium with actual exposure.