If you already have company health insurance, you will know that the insurer releases the renewal premium approximately 6-8 weeks before the annual renewal date, along with notification of any changes in the policy benefits.
As intermediaries, we receive copies of the renewal invitation documents and we assist with managing the renewal on our clients’ behalf. We follow a strict process to recommend the product best suited to their requirements for the next policy year.
We have detailed the steps below, so you can know exactly what you should expect from a broker. Processes may differ slightly between intermediaries.
Table of Contents
The Renewal Review
We receive the renewal details, including any premium changes and new policy documents. We contact the client to carry out a detailed fact find so we can ensure that any changes are actioned.
The fact-finding process is an important discussion that needs to take place so that the renewal review can be carried out and achieve the best outcome for the client. Multiple changes can occur during the year, so it is important to keep track and advise accordingly.
We check and confirm with the policy member listing with the client. This accounts for group leavers/joiners/retirees, promotions, overage dependents, births, divorces or deaths.
Overage Dependents
Overage dependents refer to the children of policyholders.
They are included in the policy at a child’s rate or under the rate of the parent until they turn a certain age. The age varies depending on which insurer. For example, BUPA is up to age 24 and AXA is up to age 30.
After this date, most insurers allow them to stay on their parents’ policy but they will be charged at an Over Age Dependent rate.
There may also be historic and ongoing claims and medical conditions the group secretary is aware of that can impact our advice. This only applies to information already known by the group secretary – it is not a requirement of the secretary to ask for employees’ private or sensitive information.
Also, the company’s actual needs may have changed. They may wish to increase or decrease cover, change benefits, excess amounts and hospital listings, the allocated budget may have adjusted, or the client may be unhappy with the incumbent insurer and wish to explore other options.
Trusted Advice and Market Review
With the updated fact find, we begin to formulate our advice. We will contact the incumbent insurer to discuss the risk profile, any changes and apply for discounts where possible.
Where applicable, we will complete a market review. This involves a manual process of procuring quotes from each of the relevant insurance providers, collating and having multiple negotiations to ensure the most favourable premiums have been offered by insurers.
The review is then collated in a comprehensive, easy-to-understand report and sent to the client. The report shows the full picture, our review and our final professional recommendation for the coming year.
Explanation of the Market
After the review, we follow up to explain what has taken place, answer any questions and guide the client on making a final decision. On the client’s agreement to proceed, we process the renewal accordingly, informing the insurers of any changes or adjustments, whilst ensuring that the cover is arranged with minimal fuss.
If there is a switch to another provider, we will arrange this and ensure that the transfer is smooth, taking care of all the required paperwork and certificates.
Ongoing Care and Support
We continually let the client know what stage we are up to in the process. We also ensure that the correct insurer documentation reaches the client, our final documents are sent out in a timely fashion and that the client has everything needed for the coming policy year.
Where suitable, we will visit the client and carry out a presentation so that the employees are educated on the benefits of the policy. Employees greatly value this as they truly feel the company is looking after them.
What To Avoid
A bad renewal is one where:
- No fact find is completed
- The adviser has not taken the time to understand what the client requires
- The broker has done no work on behalf of the client
- There has been no communication between the incumbent insurer and the broker
- There has been no attempt to lower the cost or perform a market review
If premiums are not managed carefully at the annual renewal and are simply allowed to roll over, clients run the risk of having unnecessary premium increases year on year. A broker that does not communicate properly, delays sending the client the review until the last minute, or does not complete a review properly or at all, does a huge disservice to the profession and the client.
Conclusion
A carefully managed renewal process ensures that any changes are kept on top of. Well-placed fact finds and market reviews can also help to avoid unnecessary and avoidable price jumps without compromising cover. Good timing and good communication are key to a healthy renewal process.
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