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Commercial Insurance Renewal Timetable

Collecting, consolidating and manually checking large amounts of data for a commercial insurance renewal can be a very daunting task. This business critical process, which can involve gathering data from different locations across the globe, requires a clear strategy to ensure that the correct information is collected in time to be verified and analyzed before being submitted for renewal. 

It is not uncommon for small risk teams to feel the burden of such a large and critical task, stretching their resources to the absolute limit. The challenge here is to maintain high quality collection of data and minimize the chances of any shortcuts being taken. The knock on effect of poor quality data collection is not only an increase in premiums for the business but also potential under-insurance where insufficient data is provided. This is where the risk of void claims due to lack of, or incorrect data, becomes very real. No Risk Manager wants to explain to the Chief Financial Officer that the end result is that the organization has to pay out a claim due to an insufficient policy.

Risk teams can mitigate this potential risk by having a strategy in place that allocates sufficient time for the brokering and underwriting of policies to receive a far better outcome when it comes to renewal.

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Where to start

The three most time consuming tasks when planning a Commercial Insurance Renewal timetable are:

  1. Obtaining cross-organization risk information (exposure and loss data).
  2. Verifying and analyzing renewal data and updating insurer documentation.
  3. Executing the booking process and binding instructions.

We estimate that these three tasks alone can take over four months to execute properly. Once these processes are complete, additional time needs to be set aside to discuss the renewal strategy, finalize insurances and have them confirmed in time for the renewal deadline date. To plan this strategy you should begin at least six months in advance of the renewal deadline, after which any post placement renewal activities can begin, which can take up to three months to implement. 

Who’s involved in a renewal and how do they use the data?

We’ve established that it can take the better part of six months to collate, review, analyze and present commercial insurance renewal data – before preparing to spend a further three months implementing any post placement renewal activities.

But who actually uses this data within this process and for what purpose?

To help answer this question we have identified four key roles that play an important part in the commercial insurance renewal process and will benefit from the insight contained within the data.

The Risk/Insurance Manager

A Risk Manager with up-to-date information and analysis about risks and exposures not only supplies this information to the broker, but can also justify premium spend internally and update the organization’s Chief Financial Officer and other stakeholders on the insurance renewals. 

The Broker

With this data the broker can ‘tell the story’ about the client’s risk and exposures to the insurance market and negotiate the best possible premiums and conditions. Through analyzing the detail contained within the data, the broker can offer advice before, during and after the renewal.

The Actuary

Detailed data allows the actuary to run a series of predictive and capital modeling on the values supplied for property renewals and on claims for casualty and motor renewals – consequently using the insight contained within the data for claims reserving and setting premium provisions. However, it is important to note that where any data is missing, actuaries will take the worst-case scenario, so it is crucially important that your data includes details of the highest quality. 

The underwriter

When pricing the risk and setting the policy terms and conditions, analysis of the data will enable the underwriter to spot trends and correlations, improving the accuracy with which future risks are priced. 

The key takeaways to note throughout the commercial insurance renewal process are to have clear and ongoing communication between all parties throughout the entire process and to allocate sufficient time for the brokering and underwriting of policies to mitigate any potential risk. This will result in a far better outcome.

For more information on optimizing your organization’s insurance renewal, please download The Definitive Guide to Commercial Insurance Renewal or contact us today! 

Joe Fitzpatrick is Director of Commercialization with the Ventiv Technology Global Product Management team. Joe works in the Atlanta Ventiv office and can be reached at joe.fitzpatrick@ventivtech.com or by phone at 770-308-5446.


Download the Definitive Guide to Commercial Insurance Renewal

Mar 3, 2015

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