Contract Certainty

The FSA has mandated a deadline for insureres to conform to Contract Certainty -- providing very little time for implementation. While the success of this initiative depends partially on culture and process change within the market as a whole, individual insurers and brokers are expected to make best efforts towards early implementation of best practices.

Q.Know supports the implementation of Contract Certainty through operationalising  best practices from the earliest stages of the deal process. E-mail submissions and attached documentation are logged and indexed by project, broker and insured client. Early access to these documents by underwriting assistants and administration / policy wording staff can enable rapid draft-wording responses, reducing or even eliminating unnecessary queries. If the initial pricing and terms are likely to be acceptable, the process can quickly proceed to finalisation and acceptance of terms, clearly documenting all disclosures to provide contract certainty at an early stage, and in most cases prior to policy inception.

Benefits

• Reduced costs as the best practice (straight through) process includes far fewer stages of document preparation and client interaction
• Reduced rework of policy documentation
• Reduced operational and legal risks
• Improved recording of policy negotiation and disclosures, leading to earlier and more complete understanding and acceptance of policy terms by brokers
• Improved service and transparency for brokers and insurers, leading to business retention and growth
• Reduced disputes and insured dissatisfaction, especially from claims shortly after inception but prior to policy completion
• Optimised use of capital, as underwriting commitments are understood and confirmed in advance of policy inception
• Easier audit and more assured process standardisation and measurement, also policy compliance

Q.Know supports continuous improvement as market practices change and process steps are removed.