short notice of invitation to renew

unrecognisedgenius

Hi, I'm new to the site, so I don't know if this subject has been resolved. I gather that insurers are required to issue an invitation to renew at least 7 days before policy-expiry, and that the FSA tries to enforce this. It seems to me that this period is shockingly short - what if the policy-holder is away from home, in hospital, etc.? This law/ requirement is weighted in favour of insurers, but the insured must be as important. And we know how the FSA let the nation down before the banking crisis. Any thoughts? Best wishes, UG.

huckster

Hi

I believe Insurers are required to process renewals 28 days ahead of renewal, to allow the policyholder to receive the documents 25 days ahead of renewal.

Where did you read the 7 days bit? What Insurance product, which Insurer and is this through a broker?

raskazz

There is no specified time limit for inviting renewal (or, indeed, notifying that renewal is not to be invited). The rule is that it must be done 'in good time'. What constitutes 'good time' will be determined by a range of factors including the complexity of the particular policy.

http://fsahandbook.info/FSA/html/handbook/ICOBS/6/1

cogito

In the case of retail customers, 'In good time' is generally regarded as 21 days prior to renewal and, in the main, the market observes this. In the case of commercial entities, it can mean whatever insurers want it to mean if their laxity in producing renewal terms is anything to go by.