Important Points for IC 83 - Group Insurance and Retirement Benefit Schemes Exam
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Renewal of group policies raises specific challenges to the insurance company. The main objective is to retain the group on mutually acceptable terms.
Prior to the renewal date, a representative of the insurer should contact the employer to discuss the renewal process. It is important to obtain the employer views as to the quality of the insurers service and to discuss or propose any modifications to the group scheme.
The group actuary/underwriter should review the group file. They should have a thorogh knowledge of the scheme.
The employer should disclose about all details that have changed within the previous year to the insurer. That is, the insurer should ensure that it has appropriately received notification of : all members who have left the scheme, changes in cover for the existing scheme members, lists of new members with all relevant information, individual employees health declaration where necessary, detailed information for all claims that occurred during the previous year.
The renewal of scheme permits insurer to review its internal processes, for example, employees were properly distributed in various classes, undue prudence in selecting the rate table, underwriting guidelines not properly applied and that administrative procedures are efficient.
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