When can an insurer refuse to renew a policy due to claims made?

An insurer can refuse to renew a policy due to claims made when there have been three or more claims within a three-year period. This guideline is often in place to help insurers manage their risk exposure and maintain the sustainability of their insurance offerings. When a policyholder makes multiple claims, it can indicate a higher likelihood of future claims, prompting the insurer to reassess the risk associated with renewing the policy.

Refusing to renew a policy based on claims helps insurers balance their portfolios and ensure they remain financially viable while providing coverage to those who are less likely to file claims. Additionally, insurers are typically required to notify policyholders of their reasons for non-renewal, ensuring transparency in the process. This practice is common across many insurance policies and provides a framework for both the insurer and the insured regarding claims frequency and policy renewal decisions.