Insurance carriers get thousands of fresh insurance policy applications from their agents and just as many renewal requests on a regular basis. Often, insurers cannot handle the volume of business coming in and so choose to delegate certain functions or tasks to third-party vendors. These vendors are entrusted with detecting missing information, identifying any discrepancies in the policies, and highlighting inconsistencies to the underwriters so as to minimize the risk a certain policyholder poses to an insurer, thus helping maximize their revenues. Third-party vendors have unique strategies to accelerate and streamline the insurance policy checking process.
With the onset of the pandemic, insurers have witnessed a fresh set of challenges with their policy checking services. Some of the challenges are listed below:
- A surge in fraudulent Covid-19 loss claims.
- Remote working conditions have rendered the network for information sharing to policyholders dysfunctional.
- The work from home conditions have resulted in compromised quality of policy checking services.
Some of the different ways in which third-party vendors assist insurance companies with policy checking include:
Checking the Policy Status
It is not uncommon for policyholders to forget how long their policy is valid and need to check on its status through the insurance company. This being the case, third-party vendors can help insurance companies in determining whether the policy’s status is active, dormant, or has lapsed to better serve their customers.
Reviewing Customer Documents
Insurance companies need to establish a fool-proof process for reviewing and validating customer data to ensure that all the documents submitted are complete and accurate. Third-party vendors can assist insurance companies in validating documents to check that no vital information is missing and that these documents contain no errors that may cost the insurer in the long run.
Submitting Findings to Underwriters
Third-party vendors that have accurately assessed all the data contained in the documents will need to highlight any missing or incomplete information to the underwriters. This is to minimize the risk associated with covering the policyholder and dismissing the application if the required documentation cannot be furnished.
Entering Customer and Policy Details
Insurers may need to enter the personal details of a customer in the system to generate an appropriate policy to cater to their individual needs. Third-party vendors can help insurance companies enter these details and ensure accurate and thorough data entry in this process. They can also verify the policy’s details on the insurer’s behalf.
Generating the Final Policy
Insurance companies need to generate policies based on the underwriter’s feedback and assessment. Third-party vendors can assist in this process by helping the underwriters highlight any red flags in the documents submitted and generate a clean policy once all the details have been authenticated.
Issuing Insurance Certificates
Insurance carriers often need help in issuing insurance certificates as it is a document-heavy and lengthy process. Third-party vendors can step in and take over the issuance responsibilities such that these certificates are generated and issued in a timely manner and with as much as 100% accuracy.
Handle Policy Change Requests
Often policy holders require changes to their policies such as adding a car to comprehensive/collision coverage or adding or removing a driver etc. We assist our clients handle all policy change request made by customers with accuracy and in a time bound manner. We also answer questions related to policy changes on behalf of our clients.
Insurance companies need to generate quotes for prospective customers in record time. Generating quotes for thousands of customers in a very short period of time can be riddled with difficulties and inefficiencies. Third-party vendors often take over the reins by generating these quotes in a way that insurers do not lose out on any business so as to minimize the insurer’s risk and maximize their returns.
Requesting Loss Runs
It is often the insurance carrier’s responsibility to request loss runs from previous insurers to determine how great a risk a specific customer poses to the company if a policy is granted. Third-party vendors can be entrusted with this responsibility and obtain loss run reports quickly so that they are not black-listed by underwriters when other carriers request these reports before them.
Handling Adjustment Requests
Vendors are often entrusted with the task of handling different kinds of adjustment requests from their clients. Third-party vendors can be assigned the task of accepting these requests and analyzing whether any changes that need to be made might affect the insurer in a negative way. They can also verify to what extent these change requests will affect the policy premium.
Tackling Policy Renewals
Carriers need to handle a lot of paper work when it comes time to renew a policy. Third-party vendors can be trusted to pore through all the documents on their behalf to ensure that the new policy that is generated matches the previous policy’s terms and doesn’t deviate from the original policy in any significant way.
Policy checking is often not a simple process and may need an insurer to outsource this function to a proficient third-party vendor for maximum returns. Insurance Back Office Pro is one such vendor that has niche expertise in the policy checking department. It has helped many an insurance carrier effectively streamline their insurance policy checking process and cater to their growing insurance policyholder demands. Look to Insurance Back Office Pro if you are looking to work with the best resources and technical expertise to truly be a market leader in your field.