Insurance policies for different sectors such as life insurance, automobile, workers’ compensation, and others have varying sets of clauses. The policies require to be packaged in different forms of documentation.
It is critical that insurers pay maximum attention to every detail in the policy packaging. This includes details such as policy terms, clauses, wordings, among others. Accurate policy packaging has a direct bearing to a policyholder’s experience with insurers.
However, as the customer base increase, it becomes increasingly difficult for insurers’ in-house team to comb through each minute details in policy documents. The task of policy checking somehow takes a backseat among the humongous tasks of setting new policies, policy renewals, and claim settlement. As a result, this heightens the chance of errors in insurance policies.
This warrants the importance of insurance policy checking services. In this article, we will explore the growing importance of policy checking services and how we ensure delivering spotless checking services to you.
3 Common Insurance Policy Errors
Here’s shedding light on the three common but critical errors in insurance policy documents.
Erroneous Address Entry
Erroneous entry of a policyholder’s address is the top insurance policy error. It is the result of a mistyped zip code or district name. Such an error leads to issuing insurance coverage to the wrong person.
In another instance, policyholders end up paying exorbitant premiums for flood insurance despite far away from the coast. This happens when their zip code includes the coast. It results in misquoting, thereby leading to inaccurate insurance coverage.
Inadequate Coverage Limit
Improper risk assessment results in issuing policies with inadequate per occurrence and aggregate limits.
For instance, an enterprise gets an insurance policy with a per occurrence limit capped at $2 million and the aggregate limit capped at $3 million annually. Two separate lawsuits are filed against that particular company in the same year. Each lawsuit was valued at $1.5 million. Insurers cover both the lawsuits because its per occurrence limit is $2 million. However, insurers will reimburse any additional claim in that year. It is because the enterprise had reached their coverage aggregate limit of $3 million.
Leaving Out Entities to be Covered
This is the third commonly occurring policy error. It is the result of a difference between the policy terms and information in the ACORD (Association for Cooperative Operations Research and Development) form.
For instance, a fleet owner requests coverage of 12 trucks. But the insurance policy states coverage to only 10 trucks, leaving the 2 other trucks vulnerable.
Why Policy Checking Services are Important to Avert Policy Errors?
Insurance policy checking services involve careful scanning of insurance documents. These documents are submitted by policyholders or agents.
The documents are thoroughly checked to weed out errors such as erroneous application filing, incorrect policy terms, inaccurate address, or name of policyholders, among others.
Here’s a look at how policy checking services are carried out to eliminate policy errors.
Data Integrity Evaluation
A deep-dive review of policy documents helps reveal any data inconsistency.
It includes a thorough review of binder generations, insurance policy quotes, and proposals. These documents are scrutinized to ensure that all the information featured has data integrity.
This process of evaluating data integrity minimizes any last-minute complexities during insurance claim filing. Most importantly, it eliminates any chances of missing or discrepancy in information in policy documents.
Coordination with Underwriters
Underwriters face a challenging task of ascertaining correctness and integrity of information provided by policyholders in their documents. Based on this, underwriters design and decide on the final policy terms.
Policy checking services simplify underwriters’ tasks to a significant extent. The initial data scrutiny in policy documents ensure that underwriters work with documents that have minimal to no errors.
Insurance policy checking services take charge of policyholder details verification starting from quotes, policies, and proposals.
This enables underwriters to take prompt decisions on coverage terms, resulting in shorter policy issuance cycle. This facilitates customer satisfaction and motivates them to shop for more coverages.
Policy Adjustment Evaluation
Coverage information in an insurance policy is considered complete only when it comprises policy adjustments from policyholders.
It must also be ensured that both the insurer and the insured are on the same page when it comes to understanding policy terms and conditions.
Accuracy of an insurance policy is ascertained through a thorough evaluation of terms adjustments requested by policyholders. This entails determining the impact of such adjustments on the policy’s premium value. This step is done before dispatching the coverage to underwriters for their approval.
Policy Status Verification for Customer Service
Insurance policy services require policy checking to update customers about critical information such as the status of their premium payment.
This enables policyholders to check their policy status on insurers’ portals.
How We Provide Robust Policy Checking Services
It is evident that insurance policy checking is absolutely critical. Any slip-ups in this process result in an error in policy documents. Given the high-risk aspect of the insurance industry, a single error will result in inappropriate claims filed for you to cover, suboptimal customer service, and the pain of backtracking to fix the error.
As an industry experienced background check policy services provider, we dedicate a team of policy checking experts to you. They round the clock to unburden your core staff from the tedious policy check tasks.
We constantly conduct upskilling programs and risk assessment trainings for our experts. This places them in a position to negotiate the insurance industry complexities. They gain the expertise to identify and fix errors such as inappropriate limits, coverage gaps, improper policyholder credentials while handling massive number of documents in a day.
Analytics tools play an integral part in the way we provide background check policy services. We gather data about factors such as the number accurate policies processed by our agents, number of closed deals, and so on. This allows us insights into the performance level of our agents. Based on the insights, we re-allocate resources to you to ensure services with utmost quality for you.
Our team of experts conducts several rounds of checking to ensure that all policy changes requested by customers are included post an underwriter’s verification. This is done prior to issuing the final policy to customers.
We create an audit trail of our policy review process. It keeps a record of all the flagged errors and how they were fixed. This will back you up when you face any litigation. It is because you can follow the train to prove that you have followed all the regulatory protocols during background checking policy tasks.
Who are We and Why are We Considered as an Industry Authority?
This article is authored by experts at Insurance Backoffice Pro, a leading insurance policy checking services provider. Our comprehensive range of services cater to checking an organization or individual policies, incumbent insurer renewal policies, and policy renewal with new insurers.
Get in touch with us to leverage industry expert-led insurance policy checking services.