The final stage of establishing insurance coverage is policy issuance, and it is a critical step to understand. It is the culmination of each prospective and official application step. With so many elements, many carriers even rely on a software platform to compile the information and finalize the policy. In either case, it is essential to understand the fundamentals of the process so you can guide your clients through and set expectations.
Issuance, as the final step of obtaining an insurance policy, synthesizes the application, risk, and client data with the underwriting evaluation to create a policy declaration and establish the policy and final insurance coverage.
A policy issuance platform compiles the data to finalize an insurance policy into a quickly followed user interface. The prompts, screens, and details make reviewing the application information, risk assessment data, underwriting notes, coverage limits, premium costs, potential discounts and surcharges easy. Everything in one place reduces the risk of overlooking details, ensuring comprehensive, accurate, and timely issuance and policy management.
When it comes to issuing insurance, understanding the actual issuance process includes recognizing the essential steps. For example, assessing the risk factors and evaluating the underwriters’ information are critical steps because they contribute to how the company rates the policyholder’s risk factors. The underwriters evaluate the accuracy of the information provided and research any other risk factors that play a role in the coverage.
Once the review is complete and the policyholder accepts the terms, you produce the declaration page to bind the coverage. It includes the policy issuance date and the coverage effective date, especially if the two differ. The coverage is usually effective the day after the policy issuance. This date is essential for defining the policy term and coverage period.
Providing your policyholders with the best possible service means ensuring you have the tools necessary for comprehensive service. An insurance platform that compiles everything together gives you a central point to review information, answer questions and make policy adjustments. It makes it easier to serve your customers as effectively and efficiently as possible. The right platform can save you from potentially costly oversights and show your clients your commitment to service.
Automation tools are the most significant advantages of the right policy issuance platform. You can set your platform to automatically flag specific risk factors, categorize applications according to defined criteria and automate renewal notifications and change confirmations.
The right policy issuance platform and understanding of the process make it easier for your agency to manage client policies and preserve client satisfaction while minimizing risk factors and ensuring agency profitability. Looking for the right platform is integral to meeting your agency’s long-term goals.
Say goodbye to outdated systems and begin looking at a solution that will provide what you need to increase productivity, decrease costs in the long run, deliver frictionless transactions, and remain competitive in today’s environment. For more information about VRC’s Verity software and to book a demo, click here or contact us at 541-209-0700.
