What is one main goal of conducting insurance audits?

Conducting insurance audits primarily aims to ensure proper claims handling and compliance. This process involves a comprehensive review of the insurer's practices, policies, and procedures to verify that they are in alignment with regulatory requirements and industry standards. By performing these audits, insurers can identify any discrepancies or areas that may need improvement in how claims are processed and handled. This not only helps maintain compliance with laws and regulations but also enhances the overall integrity and efficiency of the claims process, ensuring that policyholders receive the benefits they are entitled to in a timely manner.

While evaluating profitability, refining marketing strategies, and determining staff performance are important aspects of managing an insurance business, they do not directly relate to the primary objective of an insurance audit. The focus of an audit is specifically on claims handling practices and adherence to compliance requirements, helping to uphold the insurer’s responsibilities to its customers and regulators.