Risk specialists usually regard the few weeks before January and June renewals as a critical period. At that point, right before renewals are due, the entire department might need to scramble around to research and fix errors, consolidate data, review quotes, provide brokers and underwriters with missing information, and get approval from financial officers. Meanwhile, the success or failure of these activities could reflect on the company and risk management department for the entire next year.
Of course, risk managers cannot avoid some steps in this process, but they can certainly take action every day of the year to minimize or even reduce others. By taking proactive measures to make sure information is correct and accessible, and that reports are easy to produce, everybody involved can enjoy a streamlined process that is much easier to manage and likely to work out better.
Two main problems tend to slow down the renewal process and make it inefficient and unproductive. Here are the problems and possible solutions:
Some insurance experts say that risk specialists who cannot get timely action from their brokers might be wise to start shopping around for another broker. Collecting quotes in a timely manner gives managers time to shop around, make sure coverage is correct, and negotiate with insurers. Given the right information, some insurance companies and brokers offer tentative quotes, thirty, or even sixty days in advance of renewal dates.
However, brokers and underwriters are not likely to be the only reason for a delay. During crunch time, risk specialists might spend more time tracking down policy information, safety reports, property values, and other relevant information than they do analyzing coverage needs. If the renewal process is disorganized, the company is not likely to enjoy the lowest possible premiums. In some cases, the company won't even get the right coverage. An integrated software solution should get updated in real time whenever there is a new policy, incident, property purchase, or anything that might impact commercial insurance renewals.
You might be quite aware that your current risk management system is less efficient than it could be, but you just might not be sure what to do about it. We make it our business to help companies streamline their entire risk management process, so please contact us long before your next commercial insurance renewal date.
Apr 16, 2015
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