ACHIEVE INSURANCE RENEWAL ADEQUATLY

SUCCEED IN COMMUNICATING AND NEGOTIATING

INDEX1. Marketing Work Activities

a) Writing A Report For Each Insurance Renewalb) Conclusions and Recommendations

2. Time Control System

a) Quotation Submissionb) Receiving Confirmationc) Collecting Premium

Marketing Work Activities

Insurance Marketing work closely with Underwriters, risk and claims managers to ensure a balance between attracting and retaining customers through competitive insurance premiums (fees) and being able to cover any potential losses from claims.

Typical Work Activities :

Studying various insurance proposals;

Gathering and assessing background information in order to effectively assess the risk involved;

Calculating possible risk and deciding how much individuals or organizations should pay for insurance (the premium);

Deciding with underwriter whether the risk should be shared with a reinsurer;

Marketing Work Activities

Computing results for appropriate premiums using actuarial information, other statistics and own judgment ;

Visiting brokers or potential customers and preparing quotations;

Liaising with specialists, such as surveyors, for risk assessment;

Gathering information and various types of reports (e.g. medical records) from specialists;

Negotiating terms with policyholders or their brokers;

Ensuring that premiums are competitive;

Specifying conditions to be imposed on different types of policies, for example, asking that a property owner install a security alarm;

Negotiating with brokers and drawing up contracts;

Keeping detailed and accurate records of policies and decisions made.

Writing A Report For Each Insurance Renewal

Careful planning will help write a clear, concise and effective report summary. Marketing also decide whether applications for insurance cover (risks) should be accepted and if so, what the terms of that acceptance are. They assess a risk according to the likelihood of a claim being made by weighing up a number of factors and asking for detailed information from prospective clients (policyholders). The aim is to minimize losses for their company and help to make a profit.

Understand the purposes of the Report Summary

Knowing the purpose will help us to communicate the information and be more selective when retrieving data. Giving adequate time to each of the developmental stages prior to submission.

Collect information for the Report Summary

We may have much of the information we need already such as survey reports, production list or loss records. However, there may be other material which is needed such as background information on other research studies or surveys. We may need to carry out an appointment or make a visit to the insured to collect all the information we need.

Organize and present data effectively

Present the data and information as simple as possible. The more complicated the information looks, the more difficult it will be to interpret. The results can be presented in a “Quotation Request Form”. This should give the context and scope of the report and should include your terms of reference. State clearly, define the limits, outline the method of enquiry, give a brief general background to the subject of the report and indicate the proposed development.

Set deadlines for the various stages

Set the work within a sensible time schedule for completion by the given deadline (inception date). Some of the most time-consuming parts of the process are collecting and selecting data, and checking and revising the report.

Conclusions and Recommendations

This is the section of the report which draws together the main issues. It should be expressed clearly. List the recommendations in separate section and them with conclusions and reasons.

Think through the outline of the Summary and work on the details of the risk. Such thinking will also lend focus to work and end up optimizing the returns on the time invested.

Two months before the actual inception date, have to have at least a paragraph-level outline of the report on the insured, with all details worked out.

Conclusions and Recommendations

After one round of critical analysis by the marketing of the account itself (or by team), have an underwriter review it. While it may be good to get someone working in the same area, for much of the feedback.

At this point, have the technical advisor give feedback on the outline. Getting this early is important since, based on this, Marketing may have to reorganize the report on the account, rework the theorems, or rerun the simulations.

Have a pre-final version of the Summary and Quotation ready 2 weeks before the Inception Date. Again, go through one round of self/peer-feedback, and then advisor/instructor feedback.

With these 3-4 rounds of revision and critical analysis, the quality of the Summary is bound to improve. Quality of writing a summary dramatically improves chances of profit.

Time Control System

Improve Time Control System, by taking the following measures:

1 month of preparation before renewal for all type of business insurance

Check Back up Re-Insurance information

Recheck KYC database and imply in quotation request form

Contact client and notify about the insurance renewal

A Risk Survey must be conducted to analyze the risk

Make an appointment with the client to review the Coverage and Sum Insured. Propose other types of insurance coverage to the client if there is an opportunity and possibility.

Quotation Submission

Issue Quotation for New and Renewal accounts

Send quotation 2 weeks before the inception date

The quotation are preferably been sent in person by the contact person, if not possible, it can be e-mailed or faxed and followed with a call to make sure the client has received and fully understands the terms and conditions.

After receiving confirmation and approval, send a Notification Letter of Renewal (Relief Letter). Marketing Department must clarify if issues appear (concerning clauses or co-insurance) and advise instructions to the U/W Department.

Receiving Confirmation

Ensure that all required documents are received

Send Policy & Invoice 7 (seven) to 10 (ten) working days after the inception date

Collect Premium

2 Days after sending Invoice & Policy 2nd week after sending Invoice & Policy (contact by phone) 3rd week afterwards 2 days before due date

PREPARE

Review the policy and invoice of the client before making the call. Know the history of the account and credit record. Have all records in, ready for reference.

ATTITUDE

Adopt a straight, professional business-like attitude. The Policy has been issued, the insurance period has started, there is a premium due date, and payment is expected. Never let it become personal. Don't yell or raise our voice; and NEVER swear. Don't threaten; legal action is our recourse.

CONTACT

Make sure we're talking to the right person. Identify the person who will pay the premium. Indicate the purpose of the call and if necessary give deadlines.

CONTROL

Control the conversation. Keep it focused on the payment and on the repayment schedule. Don't let the client sidetrack with personal history, excuses, etc. Remember that the object of the call is to collect money, or get a commitment, not to win arguments.

FLEXIBLE

Be ready to adjust to the situation. Think about the kind of client we’re dealing with and adapt to meet the circumstances. Be prepared to accept a reasonable payment schedule, and a willingness to deal with a client's circumstances.Collecting Premium

NOTES

Keep detailed, accurate notes of every contact with the customer. Probe for further information on the customer. Notes of these contacts will help in subsequent phone calls, and may be invaluable in litigation. Good notes will also help in further credit decisions, or in cases where skip tracing may be needed.

PRODUCTIVE

Keep contact brief and to the point. This is a business call, not a social one. View efforts on a ratio of time expended to results achieved.

PRECISE

Never leave a contact open ended. Every contact should result in a commitment to payment, of a specific amount, by a specific date, even the check number the Client is using to pay the pledge.

TIME

The longer an account is held, the less likely it is that it will be recovered. If payment is not arranged within 90 days, place the claim with a collection agency or start legal proceedings.

Collecting Premium