An insurer may decide that it no longer wants to insure a particular business at renewal.

This is commonly referred to as non-renewal.

Why might an insurer decline renewal? #

Reasons can include:

• A change in underwriting appetite.
• Changes to the business activities.
• Claims history.
• Increased turnover or project sizes.
• Changes to the property or location.
• A broader market withdrawal from an industry.
• New information identified during underwriting.
• Changes in insurer capacity.

A non-renewal is not necessarily the result of something the business has done wrong.

What should I ask the insurer or broker for? #

Useful information can include:

• The reason for the non-renewal.
• Current policy schedule.
• Claims history.
• Any insurer surveys.
• Outstanding risk requirements.
• Relevant correspondence.

Understanding the reason helps determine which alternative insurers may be suitable.

Should I wait until the policy is about to expire? #

No.

Alternative placement should ideally begin as early as possible.

Complex risks can require additional underwriting information and may need to be presented to multiple specialist markets.

Can another insurer provide cover? #

Potentially.

Different insurers have different appetites.

However, the alternative policy may have different:

• Premiums.
• Excesses.
• Limits.
• Exclusions.
• Conditions.

The replacement policy should therefore be compared carefully rather than simply treated as equivalent to the previous cover.