What does a non-renewal decision by an insurance company indicate?

A non-renewal decision by an insurance company indicates a refusal to renew a policy after the current policy period ends. This means that once the policy reaches its expiration date, the insurer will not continue coverage under that policy for another term. It's important for policyholders to understand that non-renewal does not occur during the policy term; rather, it is a clear signal that the insurer will not offer renewal options once the current coverage expires.

Recognizing a non-renewal also helps policyholders prepare for finding alternate coverage before their existing policy ends. This decision can stem from various factors, such as changes in the risk profile, claims history, or underwriting guidelines.