An Introduction to Insurance Renewal
Insurance renewal, often referred to as only ‘renewal’, is the extension of an existing insurance policy beyond its original expiration date. Due to renewal, policyholders can continue to enjoy protection against financial losses and other possible risks.
Therefore, renewal applies to diverse types of insurance policies, such as, life, health, home and automobile insurances.
Renewal helps bridge gaps in coverage, especially for the necessary varieties of insurance such as motor insurance. It allows individuals to reassess their insurance needs and future objectives and adjust accordingly.
Renewal helps policyholders to add/remove policy riders, increase/decrease coverage and re-evaluate terms and conditions. During renewal, insurance companies may increase/reduce premium rates based on the policyholder’s claim history, risk profile and/or market inflation.
