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Two Challenges You Could Face During a Commercial Insurance Renewal

Angus Rhodes

commercial-insurance-renewal-process-challenges

Most of us who are involved in insurance renewals know that the process actually happens 365 days a year and seven days a week. The day after yearly renewals, an incident or change could happen that will impact the next renewal. However, most risk managers and brokers consider the 30 to 60 days before renewals to be a very critical – it’s crunch time. For risk managers, this short period may be when they really demonstrate their worth to their companies, and potentially earn salaries for the rest of the year.

Particularly with companies who still handle their renewals the old-fashioned way, crunch time is the time when missing information, poor communication, and errors could cause delays in renewals, or a rushed quote that doesn't provide the best results. Consider the top two challenges faced during this critical time period before commercial policies get renewed.

Quote Delays

In a perfect world, insurers would provide quotes a month or two before renewals. This allows time for negotiation and even some shopping around. In the real world, quotes may appear a week before renewal time, and this doesn't leave risk managers and financial officers in the best position to negotiate or compare bids from other insurers.

The key is to diagnose the source of delays. Is it a communication issue on your end, or even a tactic used by a few brokers to almost force companies into accepting their bids? If the problem is on your end, a risk management information system can automatically produce reports for everybody with a stake in the renewal process, and this includes financial officers, brokers, and underwriters.

Invalid or Improper Information

Companies that still pull insurance information by exchanging emails and spreadsheets with other departments, brokers, financial officers, and underwriters are likely to spend a lot of time verifying information or even just converting it into a consistent format.

For example, companies with overseas operations may need currency converted. In simpler cases, existing policies might be kept in a different system than safety incidents. In any case, there is likely to be a lot of manual work involved that could be replaced by an integrated system that verifies and coverts data at data entry time.

Meet Commercial Insurance Renewal Challenges With Integrated Risk Management Software

It should be obvious that many challenges that risk managers have to face during renewal time get caused by things that happen during the rest of the year. By utilizing integrated risk management software, companies can make sure that all information is consistent and integrated in one place. This includes every step in the process, from department incident reporting, to preparing analytics and reports for financial officers and external brokers. Why not contact us here at Ventiv Technology and request a demo of integrated risk management software today? Come see how much help we’ll be to you.

RMIS Guide

 

Apr 15, 2015

 | Originally posted on 

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