Automatically Renew the Policies

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.

NOTE  

Such automatic renewals may also include changes in the premium insured by rate increases or decreases.

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 have to be renewed, need to generate insurance offers which 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 have to be renewed, need to generate insurance offers which 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 have 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 have 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.