General Underwriting Process
What is insurance underwriting?
Insurance underwriting is the process by which insurers assess and evaluate risk to determine if they are acceptable or not and to determine the appropriate pricing of the risk as well as the terms and conditions to be applied on the policy.
Why is underwriting necessary for an insurance policy?
- Underwriting helps insurers to properly evaluate risks.
- It helps to ensure that risks are fairly priced.
- It also protects policyholders by ensuring that claims are promptly settled as the premium charged are commensurate with the risk exposure.
How long does the underwriting process take?
The duration varies based on the complexity of the policy and risk assessment. Standard underwriting can take a few hours to conclude while more complex cases may take longer.
What documents are required for the underwriting process?
The documents required in the Underwriting process for Non-Life policies defers from policy to policy. However, there are some basic documents that has to be provided/completed irrespective of the policy type/class. Such documents include; Means of identification (e.g., National ID, Driving License, International passport) for Individual clients and Certificate of Incorporation (CAC Certificate) for Corporate clients, Completed Know Your Customer(KYC) Form and Completed Proposal Form amongst others.
The customer shall be required to provide other documents that are relevant and peculiar to the chosen class of business.
Policy Application & Eligibility
How are insurance premiums calculated?
Premiums are determined based on factors such as risk level, value of the assets, policy type, and industry regulations.
Can I pay my premium in installments?
Yes, many policies offer flexible payment plans, including quarterly, semi-annual, or annual payments.
Are there penalties for late premium payments?
The industry Regulation stipulates “No Premium, No Cover.” which means that Policies cannot be underwritten without premium payment; therefore, issue of penalties do not apply here.
How do I update my payment details?
You can update your payment details by contacting customer service, your account officer or by visiting our office.
Premium Calculation & Payments
Who is eligible to apply for an insurance policy?
Eligibility depends on the type of insurance policy. Generally, individuals who are not minors and businesses that meet the insurer’s risk assessment criteria can apply.
Can I apply for an insurance policy online?
Yes, many insurers allow online applications through their websites or mobile apps. However, some policies may require physical documentation.
What happens if I provide incorrect or incomplete information during the application?
Providing false or incomplete information can result in policy cancellation, claim denial, or legal consequences. It is important to provide accurate details.
Can an insurance policy be issued without underwriting?
Some simple policies may have minimal underwriting requirements. However, most policies require proper and basic underwriting.
How do I check the status of my application?
You can check your application status by contacting our customer service team, visiting our website, or using our mobile app.
Risk Assessment & Policy Approval
What is risk assessment in underwriting?
Risk assessment is the process of evaluating an applicant’s potential risk level to determine eligibility, premium rates, and policy terms and condition.
Can my application be declined? If so, why?
Yes, applications may be declined due to high-risk factors, incomplete information, adverse claims history, or non-compliance with policy requirements.
What can I do if my application is rejected?
If rejected, you can request a review, seek clarification, provide additional documents, or explore alternative insurance options.
What happens after my policy is approved?
Once approved, you will be issued with a premium payment advice. Then after premium payment, you will get your Insurance Certificate depending on the policy involved and the policy document outlining your coverage details.
Policy Modifications & Renewals
Can I make changes to my insurance policy after it is issued?
Yes, policy modifications are possible, but they may require approval from the underwriting team and could affect your premium.
How do I renew my policy?
You will receive a renewal notice before your policy expires. You can renew online, through our customer service, or at our office.
What happens if I miss my policy renewal date?
If you miss your renewal date, your policy may lapse. To ensure continued coverage, please reach out as soon as you receive your renewal notice.
Claims & Policy Termination
How do I file a claim on my insurance policy?
To file a claim, you are expected to notify the Company immediately the loss occurred in writing and you will be sent a Claim Form to fill which would be returned along with the necessary supporting documents such as photographs and estimate of loss amongst others. You can do this online, via email, or in person.
What factors can lead to a claim being denied?
Common reasons for denial include losses which falls under policy exclusions, non-disclosure of material facts/ information, late reporting, and fraudulent claims.
Can I cancel my policy? If so, what is the process?
Yes, you can cancel your policy by submitting a formal request. Based on the Policy Cancellation conditions, you will be entitled to a pro-rated premium refund. This depends also on the policy terms and conditions.
Will I receive a refund if I cancel my policy before it expires?
Refund eligibility depends on the type of policy and the insurer’s refund policy. Some policies offer prorated refunds, while others do not.