Are Insurance Companies Compelled to Offer Renewals?

Cotta

Hi All,

I'm insured with 1st Central, however today I received an automated email to advise that I would not be offered a renewal quote. I have no claims or convictions on my policy so I queried why this had happened, the Agent was unsure so put me on hold to discuss it with a colleague. After 20 minutes of being on hold I ended the call and never received a callback.

My question is, can insurance companies do this or is there a stipulation that customers must be offered a renewal?

BoGoF

No, they can refuse to do business with you.

Cotta

BoGoF wrote: »

No, they can refuse to do business with you.

Do they need a reason? I have never had any claims or convictions so I am a little surprised.

BoGoF

No, the underwriter doesn't want the risk.

Aretnap

I believe there's a gentleman's agreement between insurers that where customers have issues like subsidence which would make it very difficult to get a new quote, the existing insurer will continue to offer renewal terms. However it doesn't extend to things like bog standard car insurance policies where the average customer will have dozens of insurers offering to take their money. So in general, no, they do not have to offer renewal terms and don't need to give a reason for not doing so.

Unless it's something specific to you that you haven't hinted at (eg you've given then a reason to suspect fraud) the midst likely reason is that their underwriting criteria or target market have changed, eg they no longer want to insure drivers in your age group, or your sort of car or whatever. Their loss. If they don't want your money, take it elsewhere.

paddyandstumpy

jhonpaul wrote: »

Yes It is legal for an insurance company to automatically renew your insurance policy. if they have told you that they will do this. Some insurance companies will give you the option of ticking a box to say that you would like the insurance to renew automatically.The insurance company must also contact you 30 days before that your insurance is due to end and tell you that they will renew with the contract unless you tell them.

:spam:

Ignore this irrelevant advice. The correct answer has already been given, insurers are under no obligation to do business with you.

lisyloo

No they don’t.
It’s possible for them to decide to move away from certain target markets.
They don’t have to tell you about their business plans.

Cotta

Received some more information today:


- Weren't keen on my profile being based in Northern Ireland with Brexit looming.
- Notified me within 20 days of my policy being up so they have acted legally.
- Put me on hold for a long period of time and call ended as Agent was unsure of what more could be said other than my renewal was declined.

engineer_amy

we had this a couple of years ago when Liberty insurance took over Hughes insurance. We were insured the first year, then liberty decided NI was riskier and opted not to offer renewal terms. But as hughes were the broker, they were able to find another underwriter for us and provide terms.

sal_III

Cotta wrote: »

Received some more information today:


- Weren't keen on my profile being based in Northern Ireland with Brexit looming.
- Notified me within 20 days of my policy being up so they have acted legally.
- Put me on hold for a long period of time and call ended as Agent was unsure of what more could be said other than my renewal was declined.

Brexit, the gift that keeps on giving...

As others have already mentioned, they are under no legal obligation to enter into a new contract with you. Also their explanation sounds perfectly reasonable. The only nag is the slightly unprofessional behaviour of the call centre bod that put you on-hold for 20min.