Decrease cover. But these actions may reduce the marketability of the product, so that
the reduction in premium rates achieved does not result in increased volumes of business sold.
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Apply limit to the sum assured, maximum age, or maximum payment period.
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Impose deductible, if it is general insurance.
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Increase exclusion applied and/or introduce longer deferred period.
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Reduce escalation of claims in payment. (Indexation clause in genaral insurance)
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Reduce elements of options / guarantees.
Introduce or extend use of reviewable/renewable premiums.
But, such steps are also likely to reduce marketability.
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Reduce additional cover.
Implement more stringent claims control processes
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Decline more claims
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Review existing claims on a more regular basis
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Reputational risk and PRE considerations if claims philosophy not in line with policyholders expectations.
Also, increased costs of new claims control measures will limit any reduction in premium rates.
Reduce anti-selection effect
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Target only lower risk business (e.g. with regard to age, sex, occupation) to allow for lower risk margins.
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Sell product as rider benefit only (e.g. when purchasing a mortgage)
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Better training of sales teams to identify anti-selection
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Effect regular policy reviews to identify over-insurance.
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But, may lead to significant reduction in business volumes and any additional costs incurred will reduce possible premiums reductions.