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Avoid these Minor Mistakes if You Want a Smooth Renewal Process

Angus Rhodes

mistakes-insurance-renewal

In the worst case, delays in the renewal process could interrupt timely policy implementation. That could easily become a catastrophe because it might violate contracts and even expose a company to grievous losses. Even if a business enjoys a successful insurance renewal in January or June, that doesn't mean the process was as effective or streamlined as it could have been. If there is no time to negotiate premiums or review coverage, it isn't likely that a business made the most our of their opportunity. Common mistakes create delays and inefficiencies that could have been avoided by proactively taking steps to avoid them.

Mistake 1: Delay renewal submissions until the last minute:

Robert Stein, a chief brokering officer for AON in New York, says that he starts working with clients 60 to 120 days before policy renewal dates. This helps ensure that submissions go smoothly, mistakes get fixed, quotes get to financial officers and risk managers in a timely manner, and there is plenty of time to review risk data and offers. From a company's point of view, exchanging early submissions for the promise of prompt quotes gives them a much better negotiating position, too.

Mistake 2: Don't consider the insurance renewal process an all-year event:

Plenty of things that can impact next year's insurance renewals could happen the week after this year's renewals. These could include accidents, a real estate purchase, or the installation of a high-tech fire alarm. All relevant information should get collected in real time to make sure all of the information that risk managers need to pass on to their brokers and underwriters is always available at the push of a button.

Mistake 3: Don't find a broker and insurance company you can rely upon:

As businesses consider ways to reduce exposure, risk managers should stay in contact with brokers to learn how proposed changes might impact insurance rates and necessary coverage levels. Good brokers and insurers will offer suggestions that may offer quick returns because they help avoid losses. Insurance companies make it their business to learn a lot about the best ways to prevent claims, and these suggestions can also save money and help prevent injuries.

Mistake 4: Don't validate and consolidate your risk data in advance:

Honestly, risk managers should have more productive ways to spend their time than using it to track down policy information, fix errors, or convert global currencies into USD. They can use that time to truly analyze potential hazards, evaluate quotes and coverage levels, and find reasons to negotiate better terms.

For many companies, the solution to streamline their insurance renewal process is to install risk management information software, or RMIS. This technology allows data entry and validation in real time from the home office or out in the field. It also allows consolidation of all relevant data and production of analytics and reports at the touch of a button. At Ventiv Technology, we already help 550 companies succeed in all facets of risk management. We'd like a chance to show you how we can help you avoid expensive mistakes by making risk management one of your companies strengths.

Download the Definitive Guide to Commercial Insurance Renewal

Apr 24, 2015

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