Policy Automatic Renewal

The Policy Automatic Renewal solution helps insurers to continue providing coverage to the customer once the initial policy period has passed, at the end of the term period, so the beneficiary never goes without coverage in any field of insurance. You can opt for this automatic renewal once you initiates your first insurance policy, so as to get rid of the worry of manual renewal once the policy reaches maturity. What is important to note is that such automatic renewals may also include changes in the premium insured by rate increases or decreases.

In order to configure whether the contracts under a specific Insurance Product should be automatically renewed or not, you must set the Renew Type on the Insurance Product level.

You may choose between:

  • No - no renewal applied for the current product and subjected insurance policies;

  • Automatic renewal - the process of automatic renewal is applied according to some extra configurations triggered by this option (see below);

  • Renewal offers - a renewal offer is generated as a JSON object for the policies which have to be renewed under the current product.

If you configure your product to Automatic renewal, then you have to fill out the following fields:

Renewal Validity - the new validity which is applied for the correlated contracts of current product:

  • Yearly - the new validity is set for 12 months (a year) in order to be automatically renewed next year, so that the new End Date of the renewed policy is the Start Date + Policy validity where the value is retrieved according to Renewal validity;

  • Monthly - the new validity is set for x month in order to be renewed, so that the new End Date of the renewed policy is the Start Date + Policy validity where the value is retrieved according to Renewal validity;

  • Same Validity - the new validity is calculated as for the previous policy to be renewed, so that the new End Date of the renewed policy is the Start Date + Policy validity where the value is retrieved according to Renewal validity; also, for this calculation, the values retrieved from the old policy are kept in the Policy Validity and Validity type attributes.

Example 1:

For the previous policy: Policy Validity = 365 and Validity type = days

For the new policy: Start Date = Renewed policy End Date + 1 and End Date = Start date + 365 days - 1 day

Example 2:

For the previous policy: Policy Validity = 13 and Validity type = months

For the new policy: Start Date = Renewed policy End Date + 1 and End Date = Start date + 12 months - 1 day

Renewing Policy - troughout the automatic renewal process, policies can be renewed as new policy records in the system, keeping the old policy records with a final status, or they can be renewed by creating a new version of the same old policy records:

  • Same policy - policy new version, keeping the same record in the database;

  • New policy - brand new policy as new record in the database.

Renewal Tariff - the calculation of renewed policies can be either kept as for the previous policy that have been renewed or it can be calculated according to the current insurance product tariff version

  • Same tariff - keeping the same tariff as for the old policy which have been renewed without taking into consideration the current insurance product tariff version;

  • Actual tariff - taking into account the current insurance product tariff version and calculate the premium amount with the new values configured on product level.

IMPORTANT!  

In order to take into account the new insurance product tariff configuration, the insurance product must be an approved version!

No. of Days Before Renewal - tis stores the number of days before renewal, more precisely, with how many days before the policy End Date, a policy should be renewed; the automatic renewal scheduled job looks after this value in order to renew the policies which meet this renewal condition x days before End Date.

Example:

If No. of days before renewal = 2, the policies after which the automatic renewal scheduled job looks after are the policies with

Policy End Date (old policy Initial End Date) - No. of days before renewal = Current Date and applies the renewal process to them

15.01.2022 (old policy Initial End Date) - 2 days (No. of days before renewal) = 13.01.2022 (Current Date) → the policies with this End Date is renewed.

NOTE  

Policy Initial End Date <= Current Date + x days before renewal and Policy Initial End Date > Current Date

If at product level, the Renewal Type is set to Renewal offer, then the policies found to be renewed generate a JSON object as an insurance renewal offer containing information about the new policy renewed.

Copy 
{
"startDate": "2022-12-19",
"validity": 12.0,
"validityType": "Months",
"issuedDate": "2021-12-17",
"totalIndemnityLimit": null,
"isRenewal": true,
"renewedPolicyId": "3bdfb0b6-5a91-48ac-854f-59e5e1650622",
"mentions": "Insert comment here",
"quoteNo": "User0063",
"noOfRenewals": 1.0,
"insuranceTypeName": "Personal Accidents",
"productCode": "PA",
"agent": {
"agentId": null,
"agentType": "Individual person"
},
"broker": {
"brokerId": null,
"distributionChannel": null
},
"contractor": {
"uniqueIdentifier": "1911110223344",
"firstName": "Praslea",
"lastName": "NoMail",
"type": "Other"
},
"insured": {
"uniqueIdentifier": "1911110223344",
"firstName": "Praslea",
"lastName": "NoMail",
"type": "Other"
},
"beneficiary": {
"uniqueIdentifier": "1911110223344",
"firstName": "Praslea",
"lastName": "NoMail",
"type": "Other"
},
"currency": "RON",
"paymentType": "brokerCollection",
"paymentFrequency": "monthly",
"renewedPolicyNo": "80001342",
"insuranceProductItemList": [
{
"code": "MEACC",
"insuredAmount": 20000.0,
"finalPremiumAmount": 691.2
},
{
"code": "ICPA",
"insuredAmount": 25000.0,
"finalPremiumAmount": 792.0
},
{
"code": "PDA",
"insuredAmount": 35000.0,
"finalPremiumAmount": 1209.6
},
{
"code": "DPA",
"insuredAmount": 50000.0,
"finalPremiumAmount": 144.0
}
]
}

The daily scheduled job, FTOS_PA_PolicyRenewal, is running in order to find all the policies from the system which have to be renewed according to their end date and the parameter set for the number of days before renewal mentioned above.

The job verifies all the policies which have the Policy End Date (policy to be renewed Initial End Date) - No. of days before renewal (parameter set) = Current Date, and applies the renewal process to them.

The policy automatic renewal types are described below:

The system generates renewal offer policies for those which are due to expire and have the following product configuration:

  • Types of Renewal: New Policy;

  • Renewal Validity: Same Validity;

  • Renewal Tariff: Actual Tariff.

The policies which need to be renewed, need to generate insurance offers which need to include the following information:

  • Status of newly renewed policy - Proposal;

  • Validity - Renewed Policy validity;

  • Begin Date = Renewed policy End Date + 1;

  • End Date is calculated according to the Begin Date + Validity;

  • Same parties;

  • Same insured object;

  • Same agent/broker and distribution channel;

  • Same quote number;

  • Same payment type and the same payment frequency;

  • Same coverages and indemnity limits;

  • The premium has to be calculated based on the currently approved product version;

  • The Payments Schedule is generated according to the standard logic;

  • The old policy has to be mapped as renewed and have completed the Renewed by attribute with the new Policy number;

  • For the new policy, save the Renewed Policy number of the old policy.

The system generates renewal offer policies for those which are due to expire and have the following product configuration:

  • Types of Renewal: Renewal Offers;

  • Renewal Validity: Same Validity;

  • Renewal Tariff: Actual Tariff.

The policies found through the FTOS_PA_PolicyRenewal job which need to be renewed, need to generate insurance offers which need to include the following information:

  • Renewed policy;

  • Same Product and Insurance Type;

  • Validity: Renewed Policy validity;

  • Begin Date: Initial Policy End Date + 1;

  • End Date is calculated according to the Start date + Validity;

  • Same parties;

  • Same insured object;

  • Same agent or broker and distribution channel;

  • Same payment type and the same payment frequency;

  • Same coverages and indemnity limits;

  • The total premium has to be calculated based on the currently approved product version.

The system automatically renews policies having the same premium amount. These are updated as new policies to update the system's contract. The configuration is given below:

  • Renewing Policy = New Policy;

  • Renewal Validity = Same Validity;

  • Renewal Tariff = Same Tariff.

The policies found through the FTOS_PA_PolicyRenewal job which need to be renewed, for products with the above configuration are renewed as follows:

  • Status: Proposal;

  • Validity: Renewed Policy validity;

  • Begin Date: Initial Policy End Date + 1;

  • End Date is calculated according to the Start date + Validity;

  • Same Parties;

  • Same insured object;

  • Same agent or broker and distribution channel;

  • Same Quote;

  • Same payment type and the same payment frequency;

  • Same coverages and indemnity limits;

  • The premium has to be calculated based on the product version valid on the issuance date of the initial policy;

  • The Payment Schedule is generated according to the standard logic;

  • The old policy has to be mapped as renewed (existing attribute) + have completed the Renewed by attribute with the new policy no;

  • For the new policy, we need to save the Renewed Policy no of the policy (existing attribute);

  • for the new policy, Start Date = Renewed policy End Date + 1 and End Date is calculated according to the Start date + Policy validity (to be taken from Renewal Validity attribute).

The system generates renewal offer policies for those which are due to expire and have the following product configuration:

  • Types of Renewal: Renewal Offers;

  • Renewal Validity: Same Validity;

  • Renewal Tariff: Same Tariff.

The policies found through the FTOS_PA_PolicyRenewal job, which need to be renewed, need to generate insurance offers including the following information:

  • Renewed policy;

  • Same Product and Insurance Type;

  • Validity - Renewed Policy validity;

  • Begin Date = Initial Policy Begin Date + 1;

  • End Date is calculated according to the Start date + Validity;

  • Same Parties;

  • Same insured object;

  • Same agent/broker and distribution channel;

  • Same payment type and the same payment frequency;

  • Same coverages and indemnity limits;

  • The total premium is calculated based on the product version valid at the issuance date of the renewed policy.