By Jamie Lewis, Assistant Vice President
The hours of work you put into writing that big account is almost a year behind you now. Even though it’s been 9 months, you vividly remember the weeks of collecting information from your client, following-up for additional requests, reviewing applications and loss runs, explaining why the company is requiring so many details, and finalizing your own file. There are 90 days left on this policy and you’re anticipating a smooth and painless renewal. Then you get an email from Beacon Hill that includes a blank application, a separate supplemental app, and bullet point list of four additional items. When opening the application, you see another list of details that must be sent with the application. You may be wondering why you actually have to go through this process all over again for a renewal.
Our goal is not to make your life more difficult. We want a smooth and painless renewal experience just as much as you and your insured do! Beacon Hill imports and begins reviewing upcoming renewals 120 days prior to expiration. We carefully examine the account, any servicing issues during the policy term, and discuss the upcoming renewal with the assigned underwriter. When requesting information, we try to anticipate any questions or requests the insurance company may have. Our goal is to ask for everything the carrier may need and give you the opportunity to receive everything from the insured at one time.
An updated application is the most important piece of information for an upcoming renewal. While there may not be any changes in the insured’s operations from the prior term, it is crucial that the insured carefully reviews their operations, services, revenue, and any claim history information listed during the prior term. The insured should make sure that all information about their company and risk is updated and accurate. Not revealing information such as a potential service offered, state where they may be performing work, or potential claim information could make the insured’s renewal policy invalid. The insured needs the opportunity to review and confirm by signature that all statements on the application are true and complete.
Current financial statements will allow the insurance company to review the insured’s revenue trends and compare them to upcoming projections. If their projection for the upcoming renewal differs from what their financials may have revealed about the prior term, there may be additional questions or concerns. This is also an opportunity for an underwriter to review and determine the financial stability of the insured’s company – including their ability to pay the deductible. Currently valued loss runs for prior terms will help the company compare information to see if there have been any developments in losses on prior policies. Additional requested details such as resumes, a Health & Safety Plan, a Statement of Qualifications, updated licenses or certifications, MVRs, ACORD Applications, etc. are not always requested or required. These are additional details that are always helpful to an insurance company when analyzing and determining a risk. These are often items that may not change from year to year, so we may only request them once to help create a full and complete file.
As with any account, no two renewals are the same. The Renewal Team at Beacon Hill spends a great deal of time making sure that the company’s file is accurate and complete and determining the information that is truly necessary and available from the insured. It is important for us all to communicate often on upcoming renewals to make sure that the carrier receives exactly what they need to offer competitive renewal terms and pricing.