https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3ARenewal_businessDefinition:Renewal business - Revision history2026-05-02T13:52:31ZRevision history for this page on the wikiMediaWiki 1.43.8https://www.insurerbrain.com/w/index.php?title=Definition:Renewal_business&diff=18845&oldid=prevPlumBot: Bot: Creating new article from JSON2026-03-16T08:55:12Z<p>Bot: Creating new article from JSON</p>
<p><b>New page</b></p><div>🔄 '''Renewal business''' refers to [[Definition:Insurance policy | insurance policies]] that are continued for a subsequent term when their current period of coverage expires, as opposed to [[Definition:New business | new business]] written for the first time. In both personal and commercial lines, renewal business typically forms the backbone of an [[Definition:Insurance carrier | insurer's]] or [[Definition:Managing general agent (MGA) | MGA's]] book, often representing the majority of annual [[Definition:Gross written premium (GWP) | gross written premium]]. Because the insured risk has already been evaluated during the original [[Definition:Underwriting | underwriting]] process, renewals carry a different risk profile — and a different cost of acquisition — than policies sold to entirely new customers.<br />
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📊 At the operational level, the renewal cycle begins well before a policy's [[Definition:Expiration date | expiration date]]. [[Definition:Underwriter | Underwriters]] review the account's [[Definition:Loss history | loss history]], reassess [[Definition:Exposure | exposure]] changes, and determine updated [[Definition:Renewal terms | renewal terms]] — including any adjustments to [[Definition:Premium rate | premium rates]], [[Definition:Deductible | deductibles]], or [[Definition:Coverage | coverage]] scope. In [[Definition:Lloyd's of London | Lloyd's]] and London market business, renewal negotiations between [[Definition:Broker | brokers]] and lead underwriters often set the tone for the broader [[Definition:Subscription market | subscription market]]. Automated renewal workflows have become increasingly common in personal lines and small commercial segments, where [[Definition:Insurtech | insurtech]] platforms use [[Definition:Predictive analytics | predictive analytics]] to flag accounts that warrant manual review while processing straightforward renewals with minimal human intervention.<br />
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💡 The strategic importance of renewal business cannot be overstated: retaining profitable policyholders is almost always more cost-effective than acquiring new ones, and a high [[Definition:Retention rate | retention rate]] stabilizes an insurer's revenue base across market cycles. Conversely, poor renewal management — whether through inadequate [[Definition:Risk selection | risk selection]], uncompetitive pricing, or slow service — can erode a book of business surprisingly quickly. Regulators in various jurisdictions also pay attention to renewal practices; for instance, the UK's Financial Conduct Authority introduced rules requiring insurers to offer renewal prices that are no higher than the equivalent [[Definition:New business | new business]] price, directly targeting the practice of "price walking" loyal customers. Across markets, disciplined renewal management remains one of the clearest indicators of sustainable underwriting performance.<br />
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'''Related concepts:'''<br />
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* [[Definition:Renewal terms]]<br />
* [[Definition:Retention rate]]<br />
* [[Definition:New business]]<br />
* [[Definition:Underwriting]]<br />
* [[Definition:Gross written premium (GWP)]]<br />
* [[Definition:Policy period]]<br />
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