- Created by: fjollakrasniqi
- Created on: 09-05-21 16:24
-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…