Mid-term adjustments
🎯 Purpose
Procedure for processing changes to a live policy: cover changes, sum insured amendments, risk address changes, addition or removal of items.
Owner: Policy Administration Team Lead · SLA: 2 working days from complete instruction
📊 Operational overview
Key operational metrics
- SLA target: 2 working days from complete instruction
- First-time-right target: 97%
- Backdating exception review within 1 working day
- Queue aging escalation at 24 hours
- Underwriting referral turnaround monitored daily
Continuous improvement priorities
- Reduce endorsement rework linked to incomplete instructions
- Improve structured address validation rates
- Increase automation of premium adjustment notifications
- Monitor referral volumes by risk-change category
- Review recurring dispatch or document-generation failures
✅ Procedure
Validate the instruction source: policyholder directly, or intermediary holding a current mandate for the policy. Instructions from anyone else are refused and logged.
Confirm the change is within product rules. Changes that alter the risk materially (occupancy, use, construction) route to Underwriting via the referral SOP in Underwriting Operations before processing.
Calculate the premium effect from the effective date requested. Backdating beyond 30 days requires team lead approval and a file note explaining the reason.
Process the endorsement in the policy administration system; the system generates the endorsement schedule.
Where premium changes: confirm the collection adjustment is scheduled and, for broker-billed policies, notify Finance Operations so the statement run expects the movement.
Issue the endorsement documents to the client through their chosen channel; record dispatch.
⚠️ Escalation requirement
Material risk changes, extended backdating requests, or premium-impact disputes must be referred to Underwriting or the Policy Administration Team Lead before release.
🛡 Governance and ownership
Function | Operational responsibility |
|---|---|
Policy Administration | Validate instructions, process endorsements, and maintain evidence records |
Underwriting | Review material risk changes and referral cases |
Finance Operations | Manage broker-billed premium movement tracking |
Compliance | Monitor adherence to delegated authority and audit requirements |
⚠️ Key controls
- Sum insured increases above the threshold in the delegation matrix require four-eyes release.
- Bank detail changes on refunds follow the call-back verification control (same design as CTRL-D-11).
🧾 Records and evidence
Instruction, calculation and issued endorsement attach to the policy record. Adjustment cycle time feeds the operations SLA measures.