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📬 '''Non-renewal''' occurs when an [[Definition:Insurance carrier | insurance carrier]] or [[Definition:Policyholder | policyholder]] elects not to continue a [[Definition:Policy | policy]] at the end of its current term, effectively allowing the contract to expire rather than renewing it for a subsequent period. While either party may initiate a non-renewal, the term most often arises in the context of insurer-driven decisions — situations where the carrier determines that the [[Definition:Risk | risk]] no longer fits its appetite, the account's [[Definition:Loss experience | loss experience]] has deteriorated, or broader [[Definition:Underwriting | underwriting]] strategy has shifted away from a particular segment. Non-renewal differs from [[Definition:Cancellation | mid-term cancellation]] in that it takes effect at the policy's natural expiration date rather than during the coverage period.

⏱️ Regulatory requirements govern how and when a carrier must notify the policyholder of its intent not to renew. Most states mandate a minimum [[Definition:Notice period | notice period]] — commonly 30, 45, or 60 days before the [[Definition:Expiration date | expiration date]] — and some require the insurer to state the reason for the decision. In certain [[Definition:Line of business | lines of business]], particularly personal auto and homeowners, state law may restrict the grounds on which non-renewal is permissible, prohibiting carriers from using factors like [[Definition:Credit score | credit history]] or geographic location without meeting additional regulatory tests. [[Definition:Excess and surplus lines | Surplus lines]] policies and large commercial accounts generally face fewer restrictions, though [[Definition:Broker | brokers]] still expect reasonable advance notice to arrange replacement [[Definition:Coverage | coverage]].

🔀 Waves of non-renewals can reshape market dynamics rapidly. When carriers pull back from a [[Definition:Peril | peril]] or territory — as has happened repeatedly in wildfire-prone and hurricane-exposed regions — displaced policyholders flow into the [[Definition:Excess and surplus lines | E&S market]], [[Definition:Residual market | residual market mechanisms]], or state-created [[Definition:FAIR plan | FAIR plans]]. For [[Definition:Managing general agent (MGA) | MGAs]] and [[Definition:Insurtech | insurtechs]], these dislocations represent both opportunity and risk: the influx of non-renewed accounts can fuel rapid growth, but only if the underwriting team can distinguish genuinely viable risks from those that were shed for good reason. Monitoring non-renewal trends across the market is therefore an important signal of shifting [[Definition:Underwriting cycle | underwriting cycles]] and emerging capacity gaps.

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Cancellation]]
* [[Definition:Renewal]]
* [[Definition:Underwriting cycle]]
* [[Definition:Residual market]]
* [[Definition:FAIR plan]]
* [[Definition:Notice period]]
{{Div col end}}

Definition:Non-renewal - Revision history

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