5 Steps in the Insurance Policy Life Cycle

Hi and welcome back. This video is in regards 
to the property insurance policy life cycle and   wanted to make a quick brief illustration about 
what are the sequence of events that have to take   place in order for a pop policy to be written and 
an issue with the company and this is keep in mind   this is with regards to property insurance policy 
not health insurance or life insurance this is   this video is mainly focused on property insurance 
so keep that in mind. In simplistic terms, just   think about your engine and your car and all the 
different mechanisms that have to take place in   order for that engine to work and run effectively 
and kind of putting that in the same connotation   with regards to how the property insurance policy 
is first quoted and bound and issued by a company   this is video pretty much ss it up so it really 
all starts with marketing and advertising   many of you in your own personal lives even in my 
own personal life as well we get tv commercials or   YouTube advertisements Facebook advertisement 
any sort of marketing or advertisement whether   that's through email or whatever we're on we may 
see a commercial or some sort of advertisement   of an insurance company trying to market an 
insurance policy and typically most folks   find out about their insurance company through 
marketing or advertising word of mouth or just   brand recognition or name brand so although many 
companies may not have to put as much effort   into marketing advertising other companies may 
have to depending on their distribution systems   if they're looking to go into new markets where 
their name may be unfamiliar so essentially   before a policy can even be issued or quoted 
the customer has to first find out about that   that company and that really all starts with 
marketing and advertising and here basically   the marketing and advertising it really helps 
prospects find the insurance company that's   essentially what it boils down to.

There's more 
things that might take place once the customer   goes forward with that company they may continue 
to see some sort of marketing and advertising   once you have that policy with that company 
like email communications about other products   different sort of discounts or service offerings 
that that company might have you'll continuously   see some sort of marketing advertising at some 
point throughout that term with that company next   so let's say the customer finds the commercial the 
advertisement they say what i want to go for it   with xyz company and then that's when it takes 
us into the new business and quoting in sales   and this particular segment of the life cycle is 
really with regards to the customer now actually   getting a quote and figuring out they want to 
pay the premi that's being offered and sometimes   customers may undergo various types of avenues 
to find policies they may work through an agent   they may have a licensed insurance agency that 
they work with to help them find coverage some   customers may work directly or prefer to work 
directly with their insurance company and they may   shop and get their own quotes and go forward with 
the policy as they feel that best meet their needs   but this whole cycle right here or process of 
the cycle is really with regards to new business   and quoting and typically this could be anywhere 
from a day from when a customer binds the policy   or it can be typically is six months or up to 
a year depending on how fast or how quick the   customer is looking to move on getting a new 
policy and then sales is with regards to maybe   if they're working with an agency the 
agency is really working with them to   sell them an insurance policy or if they're 
working directly with the company they may   have internal sales individuals or internal 
sales agents that help them write that policy next here is the policy issuance and underwriting 
after the policy is quoted in the new business   quoting and sales phase it then goes into the 
issuance or underwriting phase sometimes or   most of the time the policy can be issued right 
away, dependent on certain underwriting criteria   and underwriting guidelines sometimes the policy 
may not be issued right away and it has to undergo   a period of underwriting before the policy can be 
issued depending on the circstance of the property   insurance policy or that company's guidelines but 
essentially once the policy is complete with the   underwriting phase that's really the go ahead for 
the customer know that they have a new insurance   policy next here i just put the premi charge for 
the risk again this is really making sure that   underwriting and the issuance phase is making sure 
that the appropriate premi is being charged based   on all the information the customer put into 
the application or the quote and then likewise   the customer has to agree to that premi to 
make sure that premi is something that fits   their budget fix what they've seen with other 
companies that they may have gotten quotes from   next here is customer experience and technology 
really after the policies issued you're kind   of just like smooth selling i got you got the 
policy issue you just kind of throw your policy   docents in the drawer somewhere and you move 
on about your life thank god I’ve got done with   purchasing that insurance policy but then you may 
have situations throughout a period of time where   you may have to call customer service or you may 
have to log online to the online portal to check   your policy or to make changes maybe you bought a 
new car or you bought a new house you may have to   make some changes to your policy and this is where 
the whole customer experience and technology phase   of the property insurance policy life cycle is and 
really companies are putting a lot of effort into   making sure technology is up to date whether 
it be through mobile phone where you have an   application that you can quickly log into to check 
your insurance policy or to file a claim or to   make changes and making sure that the customer 
experience is where it needs to be in terms of   when you call in you're getting you're getting 
someone on the line pretty quickly or as quickly   as possible and that your interactions with 
those individuals are satisfactory and then   this is satisfaction and retention it's really 
what it all boils down to when it relates to   customer experience and technology given the 
level of various competitors and a robust market   there could be a lot of competitors and so the way 
typically customers would prefer at least myself   would prefer to stay with the companies I know 
they have really good customer service and I like   their technology so this is a really important 
part of the property insurance policy life cycle   and then I will move my screen here the last 
phase of the property insurance policy life cycle   hopefully the phase that you don't have to go 
into but in the event that you have an accident   or unforeseen circstance the last phase of the 
life cycle here's claims handling so you may   have to file a claim with your insurance company 
typically they'll have someone contact you as soon   as they possibly can and then I put here payment 
issued for covert losses and this is essentially   you'll work with usually the professional and the 
insurance companies call it a claims adjuster and   that adjuster is really your point of contact 
working with you to basically come up within   nber one figuring out if the loss is covered by 
your insurance policy based on the policy contract   if you don't leave here with anything else 
the policy contract is important so make   sure you understand and you are aware of the 
details of your policy contract but I digress   and your adjuster will work with you to get more 
information if needed and then ultimately come up   with an estimate on how much it's going to cost 
to replace your property or repair your property   and then they issue your claims payment and you 
can get your damage repaired or fixed or replaced   and that's payment issued for cover losses so in a 
nutshell, by and large in most insurance companies   property insurance policy this is essentially 
your engine if you will on really what it takes   in terms of getting a policy quoted basically 
issued serviced if you have any servicing   related matters and then hopefully you never have 
to enter into that phase but also claims handling   and if you have any questions put them in 
the comments thanks again for watching!


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