Insurance policy renewals are not working argue NICC speakers
Published: October 2, 2017
Updated: July 24, 2018
Author: Luke Jones
CATEGORY: Industry News
The insurance policy renewal process has been described as cumbersome and inefficient by speakers at the National Insurance Conference of Canada (NICC) this week.
On Monday at the Quebec City event, Franck Baron, chairman of Singapore-based Pan Asia Risk & Insurance Management Association (PARIMA) described insurance policy renewal processes as “a total disaster; it’s not working at all”. Baron was speaking as part of a panel titles Straight Talk Commercial: Global Risk Manager Views.
He told attendees that he is waiting for a policy to be issued on the association’s corporate insurance program, which was renewed on July 1, 2017. “On top of that, I’m still waiting for the insurance premiums invoice to be issued and I think it’s a complete disaster,” he said.
Rick Roberts, director of risk management and employee benefits for Ensign-Bickford Industries agreed with the assessment. The global science and technology company executive described the delays as “absurd”.
“If you look at the insurance transaction, from us as buyers, it’s the most inefficient transaction that we have to deal with on a daily basis,” he said. “You’ve got to start 90 days in advance is the recommendation and you can’t get quotes until 15 days before because underwriters are just swamped. Right now, it’s a very cumbersome process.”
Roberts has previously served as president of the Risk and Insurance Management Society (RIMS). He says it makes no sense that long-time customers need to go through a prolonged renenwal process.
“Why do we have to start 90 days in advance?” he asked. “Don’t you know us? You’ve been with us for 20 years. It’s a relationship business but there’s still, to me, a disconnect in that business relationship. I don’t know a whole bunch about insurtech, but I think there will be something that comes down the road that will disrupt how the industry interacts between broker, insurer and risk management.”
“I just want to make sure that at the end of the very long and cumbersome process we really have customized solution to my risks, the risks of my corporation,” Baron added. “I’m just not sure that it’s really happening right now.”