---
title: Mid-term adjustments
slug: policy-administration/mid-term-adjustments
icon: {"lucideIcon":"FilePenLine"}
docTags: 
createdAt: 2026-08-17T11:16:08.865Z
---

## 🎯 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

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### 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
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### 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
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## ✅ Procedure

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Validate the instruction source: policyholder directly, or intermediary holding a current mandate for the policy. Instructions from anyone else are refused and logged.
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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.
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Calculate the premium effect from the effective date requested. Backdating beyond 30 days requires team lead approval and a file note explaining the reason.
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Process the endorsement in the policy administration system; the system generates the endorsement schedule.
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Where premium changes: confirm the collection adjustment is scheduled and, for broker-billed policies, notify **Finance Operations** so the statement run expects the movement.
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Issue the endorsement documents to the client through their chosen channel; record dispatch.
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**⚠️ 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.
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## 🛡 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).

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## 🔎 Operational guidance and common failure points

- Confirm intermediary mandates are current before processing.
- Validate effective dates carefully where a premium impact applies.
- Record all approval evidence directly against the policy file.
- Escalate any uncertainty regarding material risk changes to Underwriting.
- Monitor repeated backdating requests for potential conduct or process concerns.
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## 🧾 Records and evidence

Instruction, calculation and issued endorsement attach to the policy record. Adjustment cycle time feeds the operations SLA measures.