Insurers position for 2014 business, start accounts renewal
Beginning from October, insurance companies across the globe begin firming up their position in readiness for new businesses and retention of existing accounts for the coming year.
This time, business acquisitions for 2014 have started, with underwriting companies forming alliances on new accounts and renewing old ones for the new business year. This is also the time for signing of reinsurance treaties with major reinsurance companies locally and internationally.
An industry player who preferred anonymity said “what we have done is to secure our treaties for the coming year because it is important to enable us file for bids in some corporate accounts.”
According to the source, his company has signed treaties with top reinsurance and brokers in the international market including Lloyds to enable for bids in oil and gas businesses for the coming year.
Sunday Thomas, director general, Nigerian Insurers’ Association (NIA) had stated that companies are taking this time to review their business operations for the year, and project for the new year.
Thomas stated that he expects that business in the new year will firm up with proper pricing given the volatility of risk in the environment. And this, he believes, will create more value for the business in terms of premium growth and improved service to the consumer.
According to him, the different reforms by the National Insurance Commission (NAICOM) targeted at improving the industry prospect will begin to yield result in the coming years. The outlook for the industry is positive, Thomas has stated during an interview.
Insurance business renewal is when a policy period expires and a new policy period begins. Renewal dates typically occur six months or one year after the policy began or the last renewal date occurred.
Renewal dates give both the insurance company and the insured the opportunity to make any necessary changes to the policy.
If the insurance company determines that the risk posed by the policyholder has changed, it may amend the policy, add restrictions or terminate coverage. General policy changes that affect all insureds also take place at policy renewal.
A change in risk may also trigger a premium change at renewal. A policyholder who has not filed any claims may see a premium reduction, while a policyholder with several claims may see an increase.
If you find a better rate with another company or are unhappy with your company’s service, consider switching policies at renewal. You will avoid cancellation fees that may be imposed for mid-term cancellations.
By: Modestus Anaesoronye