Meet the Pros: Robert Sherman, Head of US Audit and Advisory

Q: Rob, what are some of the biggest trends you’re seeing in US insurance audit and advisory right now?  

The audit space is moving quickly. Regulatory activity remains high. As the NCCI’s 2025 Legislative and Regulatory Trends Report highlights, nearly 1,000 bills are being tracked this year, many of which directly impact workers’ compensation. That means carriers must ensure their exposure reporting, classifications, and compliance processes are watertight. At the same time, we’re seeing increasing appetite for proactive audits, where insurers want to identify issues earlier rather than just tick the regulatory box. 

Q: You’ve been championing proactive WC and GL audits: why are they so important?  

Accurate exposure reporting is the cornerstone of a sustainable insurance model. Yet too often we see misclassification, payroll underreporting, or errors that cause avoidable premium leakage. Our experience shows that insurers who take a proactive approach can unlock up to 18% additional premium. We’ve seen first hand how solving this challenge can help not only with recovering revenue but also boosting underwriting confidence, reducing disputes, and enhancing customer satisfaction. 

Q: How are regulatory changes shaping the need for stronger audit processes?  

The regulatory environment is becoming more complex. States are expanding definitions of compensable injuries, rethinking independent contractor rules, and debating issues like marijuana reimbursement. For carriers, that means classification and reporting errors are more costly than ever. Proactive audits help insurers stay ahead of these changes, demonstrate compliance, and avoid the risk of fines or reputational damage. 

Q: What role does technology and data play in the future of audit and advisory?  

Technology is helping us streamline audits while improving accuracy. For example, integrating payroll, sales, and classification data into audit workflows makes it easier to flag discrepancies before they turn into leakage. But technology alone isn’t enough. It’s the combination of deep insurance expertise, regulatory knowledge, and client collaboration that ensures the data is used effectively. 

Q: Looking ahead to 2026, where do you see the biggest opportunities for US insurers in this space?  

For me, it’s about shifting the mindset. Audits shouldn’t be seen as a compliance burden, but as a strategic opportunity. Proactive WC and GL audits protect revenue, improve regulatory alignment, and build trust with policyholders. As we head into 2026, carriers that embrace this approach will be better positioned to navigate the regulatory landscape, reduce disputes, and grow sustainably.