Checklist for Policy Review for Insurance Companies and Agencies

FBSPL @FBSPL · Oct 16, 2024

You must have heard that precaution is better than cure. What if we say that this theory applies in the insurance world too? Yes, as an insurance agent or MGA, you are constantly trying to meet clients’ needs and comply with industry regulations. To do so, the easiest and safest way is to review policies to ensure they are on track with regulatory compliance and suit your consumers best.

The Powerful Role of Policy Reviews for Insurance Agents

Did you know that over 60% of policyholders feel neglected by agents after they have purchased their policy? That is why the need for regular policy reviews has arisen. If you want to maintain a good relationship with your clients or explore opportunities for upselling or cross-selling, you must stay in touch with them. To reach the stage where they are fully satisfied, you need to deliver them more than just the initial chasing to take your policy. Let’s see what all you can achieve-

1. Ensuring Adequate Coverage

It is essential to ensure through evaluation that the current coverage meets the client’s changing needs and circumstances. Policy review allows you to make changes in the policy in sync with recent life events, such as the acquisition of new assets, changes in business operations, or life events.

2. Compliance with Regulations

Regular policy reviews allow agents to stay compliant, meet the current standards of frequently changing insurance regulations, and avoid potential legal issues.

3. Identifying Gaps in Coverage

By following a proactive policy review approach to identifying gaps in coverage, you can save your clients from risks. This approach helps you suggest additional coverage or adjust the existing policy.

4. Optimizing Premium Costs

Policy review helps in effective policy management by optimizing premium costs. It allows you to adjust coverage limits or explore discounts, to reduce costs for your clients and provide them with adequate protection.

5. Maximizing Claim Settlements

Reviewing policies to ensure clients have the right coverage and understand the policy terms clearly can achieve a favorable claim settlement.

6. Educating Clients

Policy reviews play a huge role in educating clients about what is not covered in the policy and the reasons behind the coverage choices. This helps them make informed decisions.