Policies Renewal

This feature ensures that customers continue to receive uninterrupted insurance coverage after their initial policy period ends. It allows insurers to seamlessly renew policies so that beneficiaries are never left without coverage, regardless of the insurance type.

NOTE  

Automatic renewals can also adjust the insured premium based on any applicable rate increases or decreases defined by the insurer.

At product level, you can configure the Renewal functionality when defining the product in the Product Factory user guide. In the image below, we've configured a renewal option for a home insurance product as an example.

To switch a policy from no renewal to automatic renewal or renewal offers, you need to perform an alteration called Change Renewal Type:

  1. Open the policy by navigating to Main menu > Contract Management > Policies.

  2. In the Policy tab, click Add MTA next to your policy.

  3. Click Choose MTA type and click Change Renewal Type.

  4. From the Renew Type drop-down, click Automatic renewal or Renewal offers.

  5. From the Renewal Tariff Type drop-down

    • Same tariff: the insurance premium is calculated using the original pricing model from when the policy was first issued.

    • Actual tariff: the insurance premium is recalculated based on the insurer’s current pricing model at the time of renewal.

  6. If you've previously chosen Automatic renewal, then from the Renewing Policy drop-down pick Same policy or New policy.

  7. If you've previously chosen Renewal offers, then from the Renew Business Offer Type drop-down pick Proposal Offers, As Expiring, or Both.

  8. When done, click Validate.

NOTE  
In both manual and automatic renewal scenarios, the renewed policy can be generated either with or without creating a quotation first.

A daily scheduled job, FTOS_PA_PolicyRenewal automatically identifies all policies that are due for renewal. It checks for policies where the Policy End date – Number of days before Renewal (as configured) equals the current date. When this condition is met, the system automatically initiates the renewal process for those policies.

Manually Renew a Policy

You can manually renew a policy, when at product level, the Renewal Type is set as Renewal Offer. Details of this renewal type are outlined below.

For products configured with the Renewal Offer type, the renewal has the following validity:

  • Renewal Offer Start Date: Transition to Submitted;

  • Renewal Offer End Date: The earlier of:

    • Quote Submitted Transition Date + Quote Validity (configured at product level), or

    • Expiring Policy End Date.

Policy Administration automatically calculates the number of days before expiration (Policy End Date) based on the No of Days Before Renewal configuration at the product level. Coverage Rules for Renewal Offers:

  • The renewed policy includes only coverages that are valid at the time of renewal,

  • Each coverage’s end date aligns with the policy’s end date.

Policy Administration also provides the necessary information as it is available in the most recent InForce version of the policy:

  • Expiring policy number;

  • Offer type: Renewal;

  • Product and Insurance Type;

  • Validity: Expiring Policy validity (begin date, end date, validity in days: this is calculated as the difference between the end date and the begin date);

  • Parties;

  • Expiring policy end date;

  • Insured object (dimensions, address, declarations);

  • Agent or broker, and distribution channel;

  • Payment type and the same payment frequency;

  • Coverages;

  • Claims summary and affected coverages;

  • Card name;

  • Renewal Policy Dates:

    • Begin Date = Expiring Policy End Date + 1;

    • End Date = Begin Date + Validity.

Renewal Offers

Depending on product-level configuration, the generated quote may contain different types of offers:

  1. Proposal Offers:

    • If both Renewal Business Offer Type and Renew Business Offer Type are set to Proposal Offers, Quote Admin generates a quote reflecting offers obtained from the proposal,

    • The proposal is based on data from the expiring policy, including premium and validity configured at product level.

  2. Expiring Offers:

    • If both Renewal Business Offer Type and Renew Business Offer Type are set to Expiring, Quote Admin generates a single offer,

    • The offer’s premium mirrors the expiring policy’s coverage structure, sums insured, and deductibles (if any).

  3. Both:

    • If the Renewal Business Offer Type is set to Both, a new quote is generated containing offers for both scenarios above.

Follow the steps below to renew a policy:

  1. Go to Main Menu > Offer Management > Offers > Insurance Quotes. The list of generated quotes is displayed.

  2. Open the newly generated quote, and go to tab Quote Admin Offers to view the list of offer proposals.

    Go to the Insured Object tab to view Audience Input and Insured Object Details.

  3. Choose the suitable offer and click Accept. Alternatively, if you cannot find a suitable quote proposal, you can select all of the quotes and click Decline.

  4. After you have clicked Accept, go to tab Payment Details. Choose Payment Type for the new quote. The options are: Bank transfer, Broker Collection, Direct Debit, Continuous card payment, and Card payment. The Payment Frequency field is read-only, containing the value stated on the policy.

    If you choose the Direct Debit option as a payment type, four new fields are displayed and are mandatory to be filled in, as shown below.

  5. Once you have input the payment details, click Validate. After you have validated the payment details, you cannot make any changes to the quote details.

    In case of Direct Debit payment type, the Invoice details and Mandate details grids are unfolded.

  6. Go to tab Policy. Here, the details of the renewed policy to be issued are displayed.

  7. Click Issue Policy.

  8. Go to Main Menu > Contract Management > Policies. The renewed policy is displayed in the list. The Quote ID is the number of the quote above, that you have used to generate the renewed policy.

  9. Open the policy to view its details.

Follow the steps below to generate a renewal offer.

  1. Open a policy that is anywhere within the No. of Days Before Renewal.

  2. Run the FTOS_PA_PolicyRenewal job. This triggers the issuance of the renewal offer.

  3. Access the Renewal Offers entity list, and choose the suitable offer.

When you choose to renew a policy without generating a quote, there are two scenarios on how the policies are generated:

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 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.

Automatically Renew a Policy

For policies subject to Automatic Renewal that do not pass the Underwriting (UW) rules check, Policy Administration triggers the issuance of a Renewal Quote in Quote Admin:

  • The information provided from the expiring policy follows the same structure as in the Renewal Offer use case,

  • In this flow, Quote Admin always applies the Renewal Offer Type as Expiring.

For products configured with Automatic Renewal, policies processed under this workflow do not require a new quote.

There are two main scenarios for generating renewed policies:

Policies due to expire with the following product configuration are renewed automatically:

  • Types of Renewal: New Policy;

  • Renewal Validity: Same Validity;

  • Renewal Tariff: Actual Tariff.

  • Status of renewed policy: Proposal;

  • Validity: Renewed Policy validity;

  • Begin Date = Expiring Policy End Date + 1;

  • End Date = Begin Date + Validity;

  • Same Parties;

  • Same Insured Object;

  • Same Agent/Broker and Distribution Channel;

  • Same Quote Number;

  • Same Payment Type and Frequency;

  • Same Coverages and Indemnity Limits;

  • Premium calculated based on the currently approved product version;

  • Payment Schedule generated according to standard logic;

  • Expiring policy is marked as renewed, with the Renewed By attribute referencing the new policy number;

  • New policy stores the Renewed Policy Number of the old policy.

Policies are automatically renewed with the same premium amount, updating the system contract. Configuration: The configuration is below:

  • Renewing Policy = New Policy;

  • Renewal Validity = Same Validity;

  • Renewal Tariff = Same Tariff.

  • Status of renewed policy: Proposal;

  • Validity: Renewed Policy validity;

  • Begin Date: Initial Policy End Date + 1;

  • End Date = Begin Date + Validity;

  • Same Parties;

  • Same Insured Object;

  • Same Agent/Broker and Distribution Channel;

  • Same Quote Number;

  • Same Payment Type and Frequency;

  • Same Coverages and Indemnity Limits;

  • Premium calculated based on the product version valid on the issuance date of the initial policy;

  • Payment Schedule generated according to standard logic;

  • Expiring policy is marked as renewed, with Renewed By referencing the new policy number;

  • New policy stores the Renewed Policy Number of the old policy;

  • Start Date = Expiring Policy End Date + 1; End Date = Start Date + Policy Validity (from Renewal Validity attribute).

Underwriting Rules for Eligible Renewals

  • UW rules do not apply to policies with Renewal Type = Renewal Offer;

  • For policies with Automatic Renewal, Policy Administration checks UW rules before pricing;

  • For renewed policies failing UW checks or requiring manual review, a record is saved in the Renewal Offer entity, including policy data and UW check results;

  • The Renewal Offer entity has been enhanced with an attribute indicating whether the record type is UW-related, ensuring the system triggers UW checks correctly.