There are some instances where an insurance policy that you have held for a period of time, will not be considered for renewal by your current insurer.
We look at why this may be the case and what you can do if this does happen to you or your business.
What is the difference between insurance cancellation and non-renewal?
What is cancellation of an insurance policy?
Cancelling an insurance policy typically happens during the term of your insurance policy.
You may choose to cancel your insurance policy because you no longer require the cover. You sell your car for example and no longer need a car insurance policy.
Your insurer can also cancel your insurance policy during the term of your cover. For example, this can happen if you are found to have not disclosed the correct information when you took out the policy or if you default on your payments.
What is non-renewal of an insurance policy?
Non-renewal typically refers to a decision to not renew a policy when the current policy expires.
This can be your choice. For example, you may find an insurer who offers a better price for the coming year and therefore choose not to renew your current policy
Or it can be the choice of your insurer. They may not invite you to renew your policy with them. We’ll look into reasons why this may happen in the remainder of this blog.
Reasons why your insurance may not be renewed
Your insurer has left the market
From time to time, insurers review their exposures in certain markets and their risk appetite may change. This can then lead them to exit a market which they had previously operated in. This means it will no longer be possible to renew your insurance with them, as they no longer offer the insurance you previously took out.
An example of this is vape manufacturer insurance where one of the main capacity providers of vape manufacturer insurance recently exited the market.
Concern over certain risks
Insurers may also have concerns over certain types of risk. And as a result, may be looking to manage their exposures in these areas. If your business has a greater exposure in an area your insurer is concerned about, they may not consider your policy for renewal.
If we think of the ongoing issues with cladding on buildings for example, some insurers may be less inclined to offer to renew insurance for a business with significant exposure linked to buildings with cladding related risks. We are also seeing increasing difficulty in obtaining covers such as Professional Indemnity Insurance for certain professions. Architects, construction companies are one example, interlinked with the concerns over cladding
Your claims experience
Your claims profile can also have an impact on whether your insurance will be invited for renewal or not. If you have a poor claims experience, making multiple claims on your policy then this can impact whether your policy is offered for renewal.
A poor claims history can be an indicator of your attitude towards risk and risk management. And as discussed above, insurers are becoming increasingly selective about the risks they want to insure.
We are certainly seeing more requests for risk management information from insurers. They want to see how your business manages risk. How you can present this back can have a bearing on your ability to obtain the right insurance at the best possible price.
What can you do if your insurance is not renewed?
If the current policy that you hold with your current insurer cannot be renewed this doesn’t mean you will not be able to obtain any insurance.
You may want to consider working with an insurance broker in this instance to find suitable insurance for your needs. An insurance broker will have good relationships with a range of insurers and understand where each insurer sits in relation to the insurance that you require.
For example, at Anthony Jones we have an exclusive insurance facility for vape manufacturers so are well placed to help you obtain the right vape insurance for your business despite one of the main capacity providers exiting the market.
A broker should also be able to help your present information about your business in the best possible way to help an insurer fully understand your risk profile. Some brokers also specialise in risks management and can help you understand areas you can focus on and actions you can take to try and improve your claims profile.
We are also increasingly seeing insurers sharing risks. You may find that you can get insurance from multiple insurers each of whom takes on a different aspect of your insurance requirements. This can be quite complex and may require the oversight of a broker to ensure that you do not find yourself uninsured for some risks or underinsured.
At Anthony Jones we work in partnership with Cardinus, a global risk and safety partner, to support you in the area of risk management. We can work with you to help you understand your business and attitude to risk and identify insurance covers which can offer protection. Get in touch with us on 020 8290 9080 or email us at firstname.lastname@example.org to discuss any of your business insurance requirements.