Insurance Processes
Insurance Processes
Insurance Process Review
Our primary offering is the review of renewal management activities and timelines for all types of policy. We also provide guidance on interrelationships with other transaction types including amendments, cancellations and reinstatements.
Renewal Schedules
A great deal of thought is normally given to the definition of the new business process for any policy type but the definition of the renewal cycle is often almost an afterthought. The irony is that an established policy book with a good retention rate will potentially have 8 renewals processed for every new business taken, even more when dealing with short-term policies. This is one reason why many large insurers use mainframe solutions - this is the tool of choice when processing large volumes of 'batched' (but not necessarily batch) transactions.
In today's competitive markets the cost of new business acquisition can be high, making renewal retention even more important than ever. A carefully structured renewal cycle, whilst offering statutory compliance, can also increase retention rates and maximise the value of the client relationship.
Renewal Activities
Carefully defining the activities that are applied during the renewal cycle, and the time at which they are applied, can ensure optimum currency of information so that all policies are underwritten in the most effective and cost-efficient manner. In the US there are regulatory controls on renewal timelines that will differ by state and line of business, meaning that a flexible scheduling framework is essential to ensure compliance at all times.
The renewal cycle is also often the only opportunity to communicate with the policy holder during the contract period. Using techniques such as propensity modelling it is possible to maximise retention whilst up-selling and cross-selling to maximise the value of the client relationship (where statutorily allowed).
Renewal Experience
While working for the HUON Corporation, Richard Robinson was responsible for the design and build of the Next Activity system within The HUON Solution, which was used to schedule and manage the application of activities during the renewal cycle. The schedule was defined by business users and allowed activities to be specified at the state and line of business level. Individual schedules could be further modified by applying custom conditions that were defined within an integrated rules engine.
To create the final version of the Next Activity system Richard worked closely with a number of US clients, with policy books covering most US states, to ensure that the solution had sufficient flexibility to readily support the US market.
Richard then worked with every HUON client to provide training on how the Next Activity system worked and also provide guidance on how the renewal schedules could best be implemented for each client.
