Reviewing Client Files – A Quality Decision for Independent Agencies
Reviewing insurance client files is a resource commitment that could save the agency from an E&O claim or losing a good customer. Ensuring proper client file management shows a commitment to quality service, compliance, and data integrity.
- Ensuring Accuracy and Up-to-Date Information
Client Changes: Clients’ circumstances change over time—jobs, homes, family size, or financial situations. An agency must offer regular reviews to ensure accurate information and policies reflect current needs. The agency must also drive the importance of documenting these changes. Errors in client files (like incorrect exposure details) can lead to claims, denials, or disputes.
What to look for in the file?
- Is there written client acknowledgment of the change request being made?
- Is there carrier verification that the change request was received and processed?
- Was there a follow-up with the client to confirm the change was made?
- Compliance with Regulations
Legal and Regulatory Standards: Insurance professionals, particularly those in the Employee Benefits division, must complete reviews to help ensure that policies comply with laws and industry standards. Proper documentation reduces agents' professional liability risk, especially during audits or disputes.
What to look for in the file?
- Is there a compensation disclosure form in the file annually?
- Has the client signed an e-delivery consent form?
- Have MVRs been distributed beyond just the agency?
- Risk Management
Assessing Client Coverage Needs: Reviewing files provides the agency with an opportunity to identify gaps in coverage, providing an opportunity to make sure clients are not underinsured.
What to look for in the file?
- Has an exposure review been offered to the client?
- Do the client's insurance limits meet or exceed agency minimum standards?
- Is there documentation of additional coverage or limits having been offered?
- Enhancing Business Efficiency
Organized Records: Keeping files up to date ensures easy access to client details during reviews, audits, or claims processing.
What to look for in the file?
- Is there a client intake or quote form that provides a good “snapshot” of the client needs?
- Is there a statement of values available?
- Is there up to do date employee counts, census data and proposal presentations?
Regularly reviewing client files ensures that both clients and the agency are protected. It improves accuracy, minimizes risks, enhances customer relationships, and ensures legal compliance. By staying proactive, insurance professionals build trust and safeguard the long-term success of their business. You can find additional information regarding operational audits and client file reviews by visting Virtual Agency Solutions at www.virtualagencysolutions.com.
Mallory Cornell, MBA
Vice President, Virtual Agency Solutions at the IIAW
www.virtualagencysolutions.com
