Renewals and cancellations

Renewals: 

-most insurance policies are a year

-then near the end they are said to be due for 'renewal' 

-which is the 'renewal date' 

Renewal date is important because it means the insurers can review the risk and conditions 

Why are insurers keen to renew policies?

1. Statistics - clients portfolios will be accurate 

2. Costs - policy renewal is a lot cheaper (because of marketing costs involved). 

How does the insurer go about securing the business? 

-automated procedures i.e. sending a computer generated renewal notice 

-automatic renewal w direct debits 

Automatic and assumptive renewals have attracted scrutiny from the FCA, Govt and media. 

-one reason = diff of pricing between new business which often contains incentives and discounts to win customers, and renewals that may have such discounts removed.

-In April 2017 the FCA introduced the new reg rules for…