Reprinted with permission from Risk Management,
January/February 2009 issue, page 58. Copyright 2009 Risk and
Insurance Management Society, Inc. All Rights Reserved.
www.rmmag.com
Major advances over the past decade have been embraced by
businesses in virtually every sector, except one—the
insurance industry. The insurance industry has been slow to change
its business practices and nowhere is this more noticeable than in
preparation and delivery to policyholders of their
property/casualty insurance policies.
One common problem for policyholders is that insurance policies
are frequently finalized and delivered by insurers months after
policy inception—if they are delivered at all. Another
problem is that insurance coverage documents may be riddled with
errors. It is not uncommon for an insurance broker to check a
policy after issuance and discover significant errors, assuming the
broker even reviews the policy in the first place. Many brokers do
not, and even
