OUTSOURCE INSURANCE POLICY CHECKING
Policy Checking is Critical
It’s tempting to save time by skipping the policy checking services at renewal time, especially when the pile of renewals is large. However, this process is critical to ensuring your clients are properly covered and avoiding E&O claims. We all know insurance carriers sometimes make mistakes – endorsements made near the end of a policy term don’t make it to the renewal term, additional insureds accidentally get deleted, or payroll or revenue adjustments don’t get made. And of course, agency employees make mistakes or develop backlogs sometimes too. We’re all human, but errors and backlogs can cause a host of problems for you and your customers. Outsourcing the policy checking services may be just the solution you’re looking for.
Policy Checking Can Be Time Consuming and Costly
Depending on the complexity of the policy, the review process can be tedious and slow. If the process is consuming a lot of your in-house staff’s time, it’s consuming a lot of your agency’s capital. Agencies become more profitable when their higher paid employees spend the bulk of their time on high value tasks – those activities that produce and retain income for the agency.
However, it’s important to remember that not policy checking can be costly too. If a renewal application for a CGL policy indicates a customer’s gross annual receipts are expected to increase by a million dollars for the upcoming policy period, but the carrier doesn’t make the adjustment to the renewal policy, the customer could be in for a huge audit premium at the end of the term. These types of errors can cost your agency customers. Other errors such as incorrect vehicle or equipment schedules, or unscheduled locations can lead to E&O claims, if incidents occur during the policy period.
Outsourcing Policy Checking Services Makes Agencies More Efficient
Utilizing a business process outsourcing partner such as Insuserve-1 can streamline the policy checking services and save your internal staff a significant amount of time. In collaboration with your agency, Insuserve-1 establishes a workflow – a pre-designed process customized to your agency’s needs. Based on the workflow, our processors compare renewal policies against the prior term, as well as any other data points you require, then prepare a report for your team. These reports alert your team to any discrepancies, allowing them to quickly review and take action, if needed. Addressing issues prior to renewal prevents headaches for you, your customers, and the carriers.
Workflows can include agency and policy-specific checklists as well as a variety of services such as downloading renewal policies from carrier websites, indexing them in your agency management system, and requesting endorsements from carriers at the direction of your in-house staff.
Account Managers, and CSR’s have to be masters at multi-tasking. Unlike your employees, our processors are focused on just the specific tasks you assign – they aren’t constantly shifting from one type of task to another, like assisting walk-in customers or answering the telephone. Insuserve-1 team members are able to concentrate on their assigned activities, which makes processing more efficient and reduces errors.
Policy Checking Improves Customer Relationships
Customers work with agents because of the value those agents add to the insurance buying and servicing process. If agencies get too bogged down in operational tasks and backlogs develop, customer relationships can suffer.
A common example is premium increases at renewal time. Insurance carriers may be required to notify you and your customers when the renewal premium on a policy is going to increase more than a certain percentage, but that threshold may be set rather high. As part of a customized policy checking services, our team will alert your staff to increases in excess of a limit set by you, not the insurance carrier. This allows your staff time to alert the client and remarket the policy, if needed. Often this will prevent valued customers from shopping their business elsewhere.
It Doesn’t Have to Stop with Policy Checking
Insuserve-1’s customizable services give agencies the opportunity to add processes to established workflows in order to efficiently manage routine tasks. Maybe your agency needs assistance checking new business policies and endorsements, maybe your Producers need help collecting pre-renewal supplemental applications or other data from clients. The Insuserve-1 team is ready and able to create workflows to increase operational efficiencies throughout the term of your client’s policy.
Reach out to us today to find out more about how Insuserve-1 can help you.