What are the two main types of renewals in insurance?

In the insurance industry, the two main types of renewals are categorized as Manual and Referred. Manual renewals refer to the process where an underwriter or a representative from the insurance company actively processes a policy renewal. This typically involves a personal review of the policyholder’s information and risk profile before deciding on the renewal terms.

On the other hand, Referred renewals occur when the renewal of a policy is flagged for additional review or consideration, often due to specific risk factors or changes in the policyholder's circumstances that warrant a closer examination. This could involve referring the renewal to a supervisor or a more senior underwriter for a decision, primarily to mitigate potential risks for the insurance provider.

Understanding these types of renewals is crucial for business analysts working in the insurance sector, as it influences how policies are managed and renewed, ensuring that the insurer maintains appropriate risk management practices.