Liga Asuransi – What is Insurance Renewal?
As you may know that insurance policies don’t last forever, at least not without changing. Most policies have a policy period of one year. During this period, the insurance provider won’t make changes to the policy’s premiums or coverages (except in special circumstances, we’ll get to that).
An insurance renewal is the end of the term of your policy, at which point, you’ll need to determine if you’d like to continue under the same policy with the same insurance carrier.
When your policy term ends, your insurance policy is up for renewal. At this point, you can choose whether you want to renew insurance under the same policy, negotiate the terms, or switch to a different insurance carrier.
Most insurance brokers will notify you at least 30 days ahead of your insurance renewal to discuss your new premium, any changes in rates, and whether you qualify for any discounts.
When is your insurance renewal?
The insurance renewal happens at the end of the policy period. At renewal time, the insurer adjusts coverages and premiums before starting the next policy period. Premiums can either increase or decrease. The insurer can also choose not to renew the policy, though they’ll only do that in certain uncommon circumstances.
The renewal date on your policy is based on when your policy first took effect. Typically, business insurance policies, such as general liability, workers’ compensation, and errors and omissions insurance, are renewed on an annual basis. That means that if you want to continue coverage under the same policy, it will need to be renewed at the one-year mark.
Under the terms of some policies, they will automatically renew unless you notify your insurer otherwise. This is another reason to read your insurance policy.
When you are renewing your policy, it is important to check that all the information you originally supplied to the insurer is correct. You must let your insurer know if anything has changed.
You may also choose to examine the level of cover, perhaps if you have recently purchased new furniture or white goods for your home or completed a renovation.
Your insurance policy might allow for certain changes during the term of the policy, but the renewal notice might prompt you to take another look at your insurance policy and decide if you want to make any changes.
Renewing your insurance policy
Renewing your insurance policy is usually quite straightforward. By paying your premium, you let your insurance company know that you agree to continue the policy. Your insurer will tell you how much you must pay and how much time you must make a payment on your insurance schedule.
If you decide that you are not going to continue the policy, you should make sure that you tell the insurance company before the renewal date. Depending on the terms and conditions in your policy, you may get charged for the time that the insurer extends as a grace period for payment.
Checking your insurance needs
At the time you are renewing your policy, it is important to check that all the information you originally supplied to the insurer is correct. If there have been any changes to your circumstances, you should advise the insurer of this.
How to review and renew your insurance policy?
- Don’t focus on price alone. Choose the policy that offers the best value. When comparing policies, it’s important to choose one that offers the inclusions and features that best meet your needs. Consider product inclusions, deductibles, exclusions, and coverage limits
- Make sure the information you provided to the insurer about yourself and the assets you are insuring are still accurate. Gifts and purchases made throughout the year can quickly add up. Check you have enough insurance and make sure any new assets are covered by your policy
- Put a reminder in your diary well before the renewal date so you have plenty of time to prepare
- Re-evaluate your needs. If you have more items in your home, for instance, you may need to increase your sum insured to avoid underinsurance, or list specific items on the policy. If you have an older car, you may decide you no longer need comprehensive cover
- Talk to your insurer if you are unhappy with your premium. Many insurers will review your premium if you can provide more information.
What do I need to do at renewal time?
- Check your payment method. Make sure the method of payment that you gave your insurance company is still up to date, particularly if you pay annually. A valid payment method ensures that your renewal will go through smoothly.
- However, renewal time is a good chance to review your policy to make sure that your coverage is adequate. Take a few steps to ensure you’re still getting the coverage you need:
- If the occupancy or use of your home has changed – like starting to rent the home to others – don’t wait for renewal time; let your insurer know immediately.
- Review the details. Small mistakes can fly under the radar. Take a moment to review the details on your policy like your address or the names of insureds to make sure they’re all correct.
- Review your limits of coverage. Even if you didn’t make any significant changes during the year, it’s worth thinking about your limits of coverage. Are they too low? Are they too high? Is your deductible still appropriate? Renewal time is the best chance to make changes to your policy.
- Think about any big changes you’ve made since your last renewal. Did you do some renovations? Make a big-ticket purchase? Check that your limits of coverage are high enough for any additions you’ve made and ask your insurer to bump up your limits if they’re not.
The Jobs of an insurance broker in policy renewal
As brokers navigate a rapidly evolving insurance market, it is imperative to start renewal discussions early and make the process as efficient as possible for all stakeholders.
Ensure complete and accurate renewal data collection.
Now more than ever, underwriters need more comprehensive submissions to feel comfortable with your client’s risk.
Using a customizable renewal system designed to help simplify and improve the renewal data collection and submission process adds value to your client relationships and improves efficiency for your staff.
With so many people working remotely right now, efficiency has become more important than ever. Online digital tools save time and improve the process for your clients along with your team in submitting data and working with underwriters.
With this system in place, you will be better positioned to advise your clients early and negotiate the best terms.
Analyze and strengthen safety and loss control programs by documenting status and results.
A key factor in pricing risk is how proactive a client is in managing their risk. With a centralized system to manage survey results, recommendations, and completed audits, you can dramatically improve your clients’ safety and loss control programs.
By providing your clients and colleagues with streamlined technology, you can establish a more proactive approach to safety and loss control while reducing risks and other hazards.
Identify deeper insights into claim frequency and severity, leading to reductions in claim costs.
Having online access to your clients’ consolidated claim information to help manage, measure, and improve results is the first step in enhanced claims management.
By integrating third-party data sources and KPIs along with advanced predictive analytics, you can identify previously undetected claim trends and anomalies in your clients’ claim data. With immediate access to emerging data trends, you can reduce claim costs and take preventive action for your clients.
By prioritizing efficiency, strengthening loss control programs, and identifying claim drivers, Insurance Broker will be better equipped to manage risk and capital in a hard market.
Source:
https://www.squareone.ca/resource-centres/insurance-glossary/insurance-renewal
https://understandinsurance.com.au/when-to-review-and-renew
https://www.ventivtech.com/blog/3-ways-for-insurance-brokers-to-improve-renewals-in-a-hard-market
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