An insurer declining to quote does not necessarily mean there is something wrong with the business.

Insurers decide which types of risks they are prepared to insure.

This is commonly referred to as their underwriting appetite.

Why can an insurer decline a risk? #

Reasons can include:

• The occupation is outside the insurer’s target market.
• Activities are considered too hazardous.
• Previous claims exceed the insurer’s tolerance.
• The business operates in a restricted industry.
• Property construction or location is unsuitable.
• Turnover or project values are too large.
• Overseas activities fall outside appetite.
• Particular contracts create unacceptable liabilities.
• The insurer lacks sufficient capacity for the exposure.

Can another insurer have a different view? #

Yes.

Insurance markets do not all have identical underwriting rules.

Specialist insurers may actively seek risks that mainstream insurers do not write.

Can more information change the insurer’s decision? #

Sometimes.

A decline may result from limited or unclear information.

Providing additional material such as:

• Detailed business activities.
• Risk management procedures.
• Claims explanations.
• Qualifications.
• Contracts.
• Photos or surveys.
• Safety procedures.

can help an insurer understand the risk more accurately.

It does not guarantee that the insurer will change its decision.