Full Cycle Insurance

Many insurers and intermediaries have deployed online insurance applications that enable users to obtain quotes and purchase policies for a range of personal line and commercial line products. The policy details are then transferred to the insurer’s back-end system. Discover IT has developed and deployed many such applications.

The more compelling application that demonstrates more complete engagement of the Internet provides brokers and agents, and also end user customers, with their own log-in to allow the processing of policy adjustments, renewals, and cancellations, directly online.

Discover IT has developed, deployed, maintains and operates a number of systems in which the complete life-cycle of insurance policies (New Business, Mid-Term Adjustments, Renewals, Lapses, and Cancellations) can be administered directly online . . . online "full cycle" insurance applications.

Brokers, agents and clients have the flexibility to administer policies directly without referral to the insurer or their call centre . . . resulting in more immediate and faster closure, and a reduction in "supply chain" overheads.

Full Cycle Insurance Schematic

The front-end web applications are connected directly to enterprise back-end business systems. The division of work between the front-end and the back-end - data validation, quotes generation, policy inception, documents generation, policy versioning, etc. can be tailored to suit the requiremets. Full versioning of the policy records means that the policy can be viewed at any historic point, to view the status of the policy at that point in time.

New Business

The insurance product is selected . . . personal line or commercial line. After having input all the required policy details, a quotation premium or, indeed, quotation premiums from a number of different schemes/insurers will be presented to the user. It is also possible to "Save partial quote" after having completed only some of the policy details. The policy quotation can be returned to at a later time.

If the user decides to proceed with the quotation, typically, payment information will be requested and then the policy will be "made live". A variety of spread payment options are supported and collection diary items are added automatically.

All the documents for this New Business (Statement of Fact, Policy Schedule, Certificate, Direct Debit Mandate, Credit Agreement, etc.) will be generated as this stage. And, if necessary, these can be stitched into a single document with blank pages (as on the back of a Certificate or Direct Debit Mandate) where required.

If this is a broker or agent, they will already have been issued with their login credentials. If this is a new end user, they will be issued with login credentials now if they have not been issued with a login during the "Save partial quote" process.

Mid-Term Adjustments

When making an adjustment to a policy, a user will retrieve the current policy record and will edit any necessary details (such as changing cover level, or adding a driver). In the solution Discover IT has developed, it is possible to have multiple quotations for an adjustment, and for the adjustment to occur at a future date. So, after a user has received the quotation(s), they can decide to proceed with one at a later date.

A rule engine is used to calculate the new annual premium, or this can be done by the enterprise back-end system. From this, the number of days left on the policy and the previous annual premium are used to calculate the MTA premium amount.

This will result in either an increased premium, referred to as an additional premium, or a decrease, referred to as a return premium, or the changes made may not have affected the premium. Payment will be collected and/or the necessary adjustments to spread payment collections will be made.

Again, all relevant documentation will be generated as part of this step.

Renewals

Renewal invitations can be automatically generated some time before the policy is due to renew (typically 15 - 30 days). When the invitation is created, the new annual premium is calculated for the next policy period.

It is also possible to make an adjustment at the time of a Renewal.

Once the Renewal is accepted and payments/payment mandates made, on the renewal date, a batch process will make all the outstanding renewals "live".

All relevant documentation (such as Renewal Confirmation, Schedule, Certificate, Revised Direct Debit Mandate, Revised Credit Agreement, etc.) will be generated as part of this step.

Lapses

When a policy is not renewed by a client, there is an automatic process to make the policy no longer "live" . . . it is lapsed.

Relevant documentation (such as Cancellation Schedule) will be generated as part of this step.

Cancellations

On cancelling a policy, information is retrieved from the accounting system to calculate whether a return premium is due or money is owed. Payment by instalments are fully accounted for in this process. Failure to receive payments on-time causes diary items to be raised and a ruleset is used to determine if and when a policy should be cancelled.

All relevant documentation (such as Warning Letters, Cancellation Schedule, etc.) will be generated as part of this step.

When used by a broker or agent, special authorities can be provided to the supervisor role.

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