Confirmed renewals flow

For some insurers, neither the bind-and-cancel nor the renewal offers flows are appropriate.

Confirmed renewals are an alternative flow that combines qualities of bind-and-cancel and renewal offer flows:

Confirmed renewals allows the job to complete immediately, like the bind-and-cancel flow.
BillingCenter has complete control of the billing aspects to the insured, like the bind-and-cancel flow. This is particularly valuable for handling electronic payment methods.
PolicyCenter always knows whether the policy is fully bound or only tentatively bound thanks to an additional data model field: Policy.PolicyTerm.Bound. This is initially false for renewals that need confirmation. The billing system calls the PolicyCenter PolicyRenewalAPI web service method confirmTerm. This sets the Bound field to true. This change happens even though the renewal job finished. In the base configuration, for BillingCenter users, PolicyCenter sends this information in the billing instruction TermConfirmed property.
The bind-and-cancel approach starts immediately booking financials because there is no way to encode the concept of pending confirmation. Some insurers do not want to book written and earned premiums or billed receivables until a renewal is paid by the insured. In confirmed renewal, the insurer can confirm that the insured actually wants the policy before starting those processes. This flow waits until confirmation before accruing written and earned premium.
Note: The implications for premiums and receivables with confirmed renewals vary widely by insurer. Carefully consider the behavior that you require from confirmed renewals before implementation.
For confirmed renewals, the billing system gives PolicyCenter positive confirmation whenever the insured pays the billing system. The bind-and-cancel flow does not have this information.
For confirmed renewals, PolicyCenter knows whether the insured never confirmed the policy and that therefore the policy is not legally binding. This information is useful for handling ambiguities like those mentioned earlier in this topic. The bind-and-cancel flow does not have this information.

The base configuration of PolicyCenter does not provide waiting until confirmation. You can change this behavior.