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📅 '''Policy expiry''' refers to the date and time at which an [[Definition:Insurance policy | insurance policy]] ceases to provide coverage, marking the end of the [[Definition:Policy period | policy period]] agreed upon between the [[Definition:Insurer | insurer]] and the [[Definition:Policyholder | policyholder]]. Every insurance contract — whether a twelve-month [[Definition:Property insurance | property]] programme, a multi-year [[Definition:Construction insurance | construction policy]], or a short-term [[Definition:Binder | binder]] — carries a defined expiry point. The precise moment of expiry matters enormously: a claim arising even minutes after the policy expires may fall outside coverage entirely, leaving the insured without indemnity unless a new or renewed contract is already in force.

🔄 When the expiry date approaches, the [[Definition:Renewal | renewal]] process typically kicks in. [[Definition:Insurance broker | Brokers]] and [[Definition:Underwriter | underwriters]] begin reviewing the account — reassessing the [[Definition:Risk profile | risk profile]], updating [[Definition:Exposure | exposure]] data, and negotiating revised [[Definition:Premium | premium]] and [[Definition:Terms and conditions | terms and conditions]] — well in advance of expiry to avoid gaps in coverage. In many [[Definition:Commercial insurance | commercial lines]], particularly in the [[Definition:London market | London market]] and large-account programmes, the lead underwriter circulates renewal terms weeks or months before expiry, and participating markets indicate whether they will continue at their existing [[Definition:Line (share of risk) | line]]. In jurisdictions like Germany and Japan, some personal lines policies include automatic renewal clauses unless one party gives formal notice, while in the United States and United Kingdom, explicit renewal acceptance is more commonly required for commercial contracts. The distinction between [[Definition:Claims-made policy | claims-made]] and [[Definition:Occurrence-based policy | occurrence-based]] policies also shapes how expiry interacts with coverage: under a claims-made form, the policy must typically be in force when the claim is reported, making expiry and any [[Definition:Extended reporting period | extended reporting period]] critical to the insured's protection.

⚠️ Failing to manage policy expiry effectively introduces serious operational and financial risk for all parties. For policyholders, a lapse between expiry and renewal — even an inadvertent one — can leave assets, liabilities, or operations uninsured. For insurers and [[Definition:Managing general agent (MGA) | MGAs]], tracking thousands of expiry dates across a [[Definition:Book of business | book of business]] is an essential administrative discipline; errors can result in [[Definition:Coverage dispute | coverage disputes]], [[Definition:Regulatory compliance | regulatory issues]], or [[Definition:Errors and omissions insurance | E&O]] claims against intermediaries. Modern [[Definition:Policy administration system | policy administration systems]] automate expiry tracking and trigger renewal workflows, but in less digitised markets, manual diary management remains common. Accurate expiry data also feeds into [[Definition:Earned premium | earned premium]] calculations, [[Definition:Unearned premium reserve | unearned premium reserves]], and [[Definition:Bordereaux | bordereaux]] reporting, making it a foundational data element across the insurance value chain.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Policy period]]
* [[Definition:Renewal]]
* [[Definition:Extended reporting period]]
* [[Definition:Claims-made policy]]
* [[Definition:Unearned premium reserve]]
* [[Definition:Lapse]]
{{Div col end}}

Definition:Policy expiry - Revision history

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