Renewal Policy Transaction

Carriers typically begin the process of renewing a policy for another period of time before its expiration.
The most efficient way is to have PolicyCenter process these renewals automatically. However,
sometimes an underwriter or producer must review or make adjustments to the policy before deciding
whether it can be renewed. PolicyCenter is flexible in handling both automatic and manual renewals.
Typically, as a policy nears its expiration date, carriers wishing to keep that business offer the policy
again for another policy period. A renewal policy transaction extends a policy for another period of time.
The goals of renewal processing are to:
• Maximize retention of the best customers of a carrier.
• Reduce expenses associated with the renewal process.

Renewal General Steps

The diagrams in this topic show the basic steps used in an automatic and manual renewal policy
transaction in the default application. You can customize the flows based on your business
requirements.

An underwriter may use the manual process if the renewal needs modification and the renewal needs to
be started before the scheduled time for the renewal batch process. An underwriter may also use the
manual process if a renewal was previously declined (not taken), then the insured changed their mind,
and now wants the policy renewed.

Renewals Manually
There may be times that you need to start the process manually. For example, you may want to start a
renewal policy transaction earlier than the predetermined number of days. Or you may want to start a
renewal if the insured originally declined the renewal, then changed their mind, and now requests that
their policy be renewed.
To start a renewal through the user interface, find an in-force policy, then select Renew Policy from the
Actions menu. The renewal wizard guides you though the necessary steps.
Starting Renewals by Using the Policy Renewal Web Service
Renewals can be started by an external system through the policy renewal web service. The web service
provides methods to start renewals on existing policies and to import a policy to PolicyCenter and start a
renewal. The web service also provides methods for renewals in a billing system.

Starting Renewals by Using a Batch Process

PolicyCenter has a batch process that automatically finds policies that are ready for renewal. In the
default configuration, PolicyCenter starts renewals based upon the expiration date, the renewal process
lead time, line of business, jurisdiction, and time of year. PolicyCenter first checks whether the
expiration date of the policy period falls within the renewal process lead time. Then PolicyCenter
determines the lead time required by regulations.

PolicyCenter adds additional time for company practices. Finally, PolicyCenter adds a delay for
concurrent policy transactions, if any. Because the renewal process lead time is checked first, no policy
will start automatic renewal sooner than this.
Factors to Consider in Scheduling the Renewal Batch Process
There are several factors to consider in the schedule of the renewal batch process. Some of these
factors are:
• Frequency – Suppose you have a batch process that runs every Sunday. A renewal that could start on
Wednesday will not start until the batch process runs several days later on Sunday.
• Start time – The batch process starts at 11 p.m. on Sunday, and it may take several hours to run.
Therefore, the batch process starts some renewals on Sunday and others early Monday morning.
• Postal service – The renewal paperwork depends upon the working days of the postal service.
Although the renewal was started on Sunday, the postal service picks up the renewal paperwork on
Monday.

Renewal Flows
PolicyCenter supports the following renewal process flows:
• Bind and cancel
• Renewal offer
• Confirmed renewal

In the default configuration, PolicyCenter uses the bind and cancel renewal flow for all lines of business.
When you bind a renewal, PolicyCenter sends charges to the billing system. PolicyCenter then does a flat
cancel for reason Policy not taken if no payment is received for that period. If partially paid, then
PolicyCenter cancels for reason Non payment.

The default configuration contains the renewal offer renewal flow which binds only after payment. You
can configure this renewal flow for a particular line of business. Under this approach, you make the
decision to renew or not renew, but instead of actually binding the renewal, you consider it a renewal
offer. When you make the renewal offer, PolicyCenter sends a renewal notice (including pricing and
payment plans). PolicyCenter does not send charges to the billing system (since no policy transaction
has been completed). When the billing system receives payment, it sends a message to PolicyCenter to
bind the renewal. If payment is not received, the PolicyCenter renewal flow times out. The renewal is
considered not taken.
The default configuration contains the confirmed renewal flow which provides confirmation from the
billing system that the insured has completed payment. PolicyCenter knows if the policy was confirmed
and is legally binding. The bind and cancel flow does not provide either of these.

Renewals Create New Policy Periods

The renewal policy transaction creates a new policy period with new effective and expiration dates.
The only restriction is that the effective date of the renewal policy must not overlap with the policy
period of the current in-force policy.

Renewal Restrictions
Any policy that has been issued and is in-force can be renewed, however there are limitations to starting
a renewal.
• There can be no open rewrite policy transactions on the policy.
• There can be no open renewals on the policy.
• The policy cannot be canceled.

Renewal Outcomes
Renewals can have one of the following outcomes:
• Renewed – A policy is renewed for another period of time.
• Not Taken – The insured declines the offered policy, and PolicyCenter marks the renewal as not taken.
• Not Renewed – The carrier decides not to renew the policy, and the policy expires on the expiration
date.

Understanding Pre-renewal Directions

A pre-renewal direction is a special type of note which indicates how to handle the renewal.
PolicyCenter attaches this special note to a policy, but you cannot view the note in the user interface.
Creating these directions can save the underwriter from revisiting the renewal policy transaction at a
later time.
Pre-renewals have the following broad directions:
• Non-renew – Indicates not to renew the policy.
• Not taken – Indicates that the insured did not take the renewal policy.
• Refer to an individual for review – Indicates that a person needs to manually review the policy before
deciding its outcome. This person can be an underwriter, a customer service representative, or an
underwriter assistant.
Usually, a user who knows how to handle the renewal creates the pre-renewal direction.

Viewing an Existing Pre-renewal Direction

You can view a pre-renewal direction on a policy.
1. In this example, find a policy that you know has a pre-renewal direction.
2. Click the Summary link under the Tools menu. A policy that does not have a pre-renewal direction,
does not display this information because the pre-renewal direction widgets are not visible.
Creating a Pre-renewal Direction
1. Navigate to a policy.
2. Select Pre-Renewal Direction from the Actions menu to view the Pre-Renewal Direction screen. If the
policy has no pre-renewal direction, then the Details in the pre-renewal direction screen is initially
blank.
3. To create a pre-renewal direction or modify an existing one, click Edit.
4. Select a direction from the drop-down list, add text, and set the security level which controls who can
view it.
In the default configuration, you can specify that the renewal:
• Ends in non-renewal
• Ends in not taken
Deleting a Pre-renewal Direction
Pre-renewals can be removed.
1. Navigate to a policy.
2. Navigate to the Summary screen as in the previous example.
3. Click the Pre-Renewal link. The Pre-renewal Direction for the Policy Term screen appears.
4. Click Delete.

Creating a Renewal from a Batch Process

Creating a renewal from a batch process is the most common way for renewals to be created. In a
production environment, the renewal batch process looks for policies that expire in X days (the default is
165 days). Then the Policy Renewal plugin evaluates each policy and determines whether to create a
renewal for that policy. A system administrator can also run this batch process outside of its schedule.
The frequency of the batch process is a factor in when a renewal starts. For example, you can have a
batch process that runs every Sunday. Renewals that could start on Wednesday will not start until the
batch process runs on Sunday, several days later.

Note: You must have the correct permissions for this process. Typically, you must have system
administrator or super user permissions.
1. In PolicyCenter, type Shift + Alt + T to display Server Tools.
2. Select the Batch Process Info link in the left sidebar.
The Batch Process Info screen contains useful information about the batch process, including:
• Current status
• The last time it ran
• The time of the next scheduled run
• The schedule
3. Find Policy Renewal Start under the Batch Process column.
4. Click Run under the Action column to start the batch process immediately.

Creating a Manual Renewal

This example is useful if you need to create a renewal before its scheduled time and need to make
changes to the policy.
1. Find the policy you want to renew.
2. From the Policy Info screen, select Actions → Renew Policy. A dialog box asks you to confirm your
selection and the renewal wizard begins.
3. Click Edit Policy Transaction. Make the required changes to the policy.
At this point, you can click one of the following:
• Quote – You must generate a quote. If the policy had not been edited, the renewal wizard
would perform the quote step and obtain a new premium.
• Save Draft – You can return to work on it at a later time.
• Close Options → Withdraw Transaction – You can withdraw the renewal.
• Close Options → NonRenew – The policy is not renewed, and PolicyCenter asks you to give a
reason.
• Close Options → Not Taken – Use if the insured declines to renew the policy.
4. In this example, click Quote.
5. On the View Quote screen, you have various options, but first review the quote and the policy in
general.
6. In this example, you use the original modified policy. Your options are:
• Edit Policy Transaction – Put the policy in Draft status. You can edit and requote again.
• Bind Options → Renew – Puts the policy transaction into a Renewing state, so that it will
eventually be completed with an outcome of renewed, but not until the actual effective date of
the renewal
 • Bind Options → Issue Now – Immediately finish the policy transaction and renew the policy.
• Close Options → Withdraw Transaction – Remove the renewal from consideration.
• Close Options → NonRenew – Complete the renewal process by setting the outcome to
NonRenewed and the policy expires. You must give a reason such as insured request, losses, or
payment history.
• Close Options → Not Taken – Complete the renewal process by setting the outcome to
NotTaken. The policy expires.
• Versions → Start Multi-Version – Create new versions of the policy. For more information,
see “Creating and Comparing Multi-version Quotes” on page 168.
• Print Quote – Print the quote.

Viewing Your Renewals

The My Renewals screen displays a renewal if:
• You have been assigned a role on that renewal.
• You have or had an activity assigned to you on that renewal.

To view your renewals

1. Go to the Desktop and select My Renewals.
2. You can select a group from the Group column or a policy from the Policy Type column. You can filter
your search by selecting from the drop-down menu displaying All open.