FAQs on various topics give insurers, brokers and underwriters an initial insight into the possibilities of digitizing industrial insurance. Frequently asked questions are answered here and are intended to help identify opportunities and potential for digital industrial insurance. Can the renewal process also be carried out digitally? What are the most important prerequisites for this?
What is a renewal?
As a rule, contracts between corporate clients and industrial insurers are concluded as annual contracts, for example in the area of financial lines – whether liability, D&O or cyber. This also applies to many other lines. If the annual contract expires and is to be extended, a complex renewal process is required in which both contracting parties review and reassess risk data.
When does a renewal normally take place?
After the renewal is before the renewal. The renewal process often starts in the second half of the year or at the end of the year. Theoretically, however, policies can also be closed at any other time.
How exactly does the renewal process work?
When the contract validity is going to expire, the insurer usually requires various documents such as current business reports, balance sheets, management reports, company organisation charts, etc. for review and further risk assessment. Next to the insurer, the industrial brokers are also involved in the renewal process – it is a matter of advising the corporate client, clarifying queries, assessing risks, filling out updated questionnaires. Until a new contract is finally concluded, many documents are sent back and forth, countless clarifications are made, e-mails and various documents are sent.
Can renewals in industrial insurance also be carried out digitally?
Yes, various forms of digitalised renewal processes exist. Ideally, the different requirements of all market partners involved are combined on a digital platform. Time-consuming communication channels and the transfer of different data formats to and between the various IT systems are no longer necessary. The development basis for such digital platforms are increasingly so-called low code approaches.
What are the important prerequisites for a digitalised renewal process in industrial insurance?
In addition to the common use of a digital platform, structured data is particularly important. Once this has been established, contracts, terms and conditions, annexes, etc. can be mapped in a common view, such as a dashboard. All market partners involved in the renewal then theoretically have the possibility to access it digitally.
How does the automated execution of a renewal between the market partners work?
All data can be exchanged, edited and adjusted quickly and easily between all participants via the digital platform. This is possible in real time. This not only saves time, but also resources – because all partners are always on the same data status.
What adjustment options are there for the different contracts in Renewal?
There are different options for action for each contract:
- The contract is not adjusted and can thus continue for another year.
- The contract is extended, but adjustments have to be made. The market partners enter into an exchange about the concrete conditions.
- The contract must be completely renewed – possibly also with other industrial insurers.
Renewal in dark processing – is that possible at all?
Yes, if the market partners agree on the rules and conditions in advance and if these are implemented on the platform. This is done easily via the digital platform and ideally takes only a few minutes. As soon as the contracts have been viewed, all policies that do not need to be adjusted are filtered out. These can then be renewed quickly and easily at the existing conditions via dark processing. During the process, several hundred contracts can be processed simultaneously in a short time using a batch process.
What happens to the contracts whose renewal cannot be processed automatically?
All contracts that need to be adjusted are selected by the stored filters and go into further processing. New offers are obtained from insurers and brokers, this can also be done automatically and digitally via the platform, and new conditions are negotiated. Once the insurers have submitted their offers, the brokers can either accept, change or reject them together with the corporate clients via the platform. Depending on the decision, improvements are then made or a new renewal offer is made.
How are the renewed contracts ultimately issued?
Once the contracts have been negotiated and accepted, they can be automatically created digitally – including all individual notes and conditions. Invoices are also issued automatically.