Author
Bowtie Team
Updated on
2025-06-19
Disclaimer: This article is translated with the assistance of AI.
Don’t let your insurance become an orphan policy! Discover simple, witty tips to manage follow-ups when your agent leaves, keeping your coverage secure and stress-free.
What is an Orphan Policy?
Traditional insurance companies rely on agents (Agents) to sell policies. When a policyholder buys insurance from an Agent, if that Agent leaves the company during the policy’s effective period, the policy turns into an “orphan policy.” If the policyholder needs to make a claim or update policy details, they’ll have to handle it all on their own. This can be a real headache, leaving them feeling like an orphan without any support or guidance.
Are Orphan Policies Common?
Agent turnover is a major reason behind “orphan policies.” According to data from the Vocational Training Council in 2017 , out of 56,955 agents, a whopping 7,333 left their jobs—that’s about 13%. It’s a trend that’s hard to ignore.
As reported by HK01 , some reasons for agents leaving include no base salary in the first year and retirement. In recent years, some insurers have shifted their agent systems, offering a base salary or benefits initially, but if agents don’t hit their targets in the second year, they lose those perks—making it tough for many to stick around beyond a year.
Problems Arising from an Orphan Policy
Of course, when you buy insurance, you hope claims go smoothly. With traditional insurers, policyholders can rely on their agent to handle everything—from communicating with the company to processing documents—all you need to do is sign and collect the payout. It’s a convenient, time-saving setup. But get too comfortable, and you might overlook the policy details, like coverage limits, claim procedures, or required paperwork.
If your original agent leaves and no one steps in right away, as an “orphan policy” holder, you might have to take the initiative to contact the insurer to sort out a new agent arrangement.
What’s even more worrying is not realizing you’ve become an “orphan policy” in the first place. Insurers and agents typically notify policyholders via mail or other means and assign a new agent, but in reality, many only find out when following up on their policy or making a claim—that their agent has already left or even changed hands multiple times. And whether the new agent is proactive or on top of things? Well, that’s another story, leaving plenty of policyholders feeling lost when they need help most.
On top of that, policies need to evolve with life changes, like your age, personal needs, medical inflation, or new diseases—adding coverage is a breeze with an agent on your side. But if you’re stuck with an orphan policy and lose that go-to contact, you’ll have to navigate the paperwork yourself, which can turn into a real hassle.
How to Check Your Policy Status?
As a responsible policyholder, don’t rely too heavily on your agent. When you sign up, take the time to thoroughly understand the policy terms and covered items, and make it a habit to check your policy status regularly. Many insurers now offer online account services where you can log in to see the latest updates and agent contact info. If you haven’t set up an online account, the company should send a notification letter after any agent changes.
If you’ve misplaced any letters from the insurer, you can always call their customer service hotline to get the lowdown on your policy status.
What to Do If Your Insurance Policy Becomes an Orphan Policy?
If your policy has turned into an “orphan policy,” it’s time to connect with your newly appointed agent to make sure they fully understand your needs. And if you think switching to another trustworthy agent is a better move, you can simply reach out to the insurance company in writing to arrange for the right person to take over.
Do You Need an Agent to Buy and Claim Insurance?
With technology evolving rapidly, online insurance buying and claiming are the new norm. More and more companies, like Bowtie, are putting their plan details and terms right online, and they offer easy ways to get help—think email, phone, or even Live Chat—so you can sort out your policy questions anytime, anywhere.
On top of that, Bowtie has really put in the effort with their online system. They help you skip those intermediary fees and have created a straightforward, user-friendly setup for underwriting and claims. Impressively, without any agent assistance, nearly 70% of customers can handle their own applications, and over the past two years, they’ve achieved a whopping 90% payout rate on processed claims.
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