Secured & Assured: Insurance Auto-Renewals and Loyalty

Insurance policies are important financial instruments designed to provide a safety net during unforeseen life events. Understanding insurance auto-renewal, the necessity of reviewing your cover, and the dynamics of loyalty towards your insurer are essential to maximise the benefits of your insurance portfolio.

Insurance Auto-Renewal
Auto-renewal is a standard feature in insurance policies, guaranteeing uninterrupted coverage. It activates as the contractual period nears its end, renewing the terms automatically unless terminated by either party. While it eradicates the risk of coverage lapse, it could lead to unintentional acceptance of unfavourable new terms or cost hikes.

Implications of Auto-Renewal
The Financial Conduct Authority (FCA) mandates insurers to not quote higher prices for renewing customers than for new ones, addressing the ‘loyalty penalty’ often associated with auto-renewal. [1] However, it’s incumbent upon consumers to review their policies, compare rates, and understand any term changes at renewal to ensure value retention.

Strategies for Navigating Auto-Renewal
Being proactive during auto-renewal can foster better financial outcomes. Marking renewal dates, engaging with insurers to understand term changes, and shopping around for rate comparisons are crucial steps. Furthermore, leveraging insurance advisers can provide a broader view of available options, and ensure timely reviews as your policy nears its end.

How to Review Your Cover
Regular reviews of your insurance cover ensure its alignment with your needs and market competitiveness. Here is a structured approach that you can follow each year:

● Comparison Shopping: Obtain multiple insurer quotes, use online comparison tools, and explore discounts or bundled offerings.
● Assess Coverage Needs: Evaluate changes in personal or financial circumstances that require coverage adjustments.
● Stay Informed: Stay updated on new insurance products, regulatory shifts, and industry trends. To do this you can sign up to various newsletters or stay in regular contact with your adviser.
● Document and Record: Maintain a record of your policies, premium payments, and insurer communications for future reference.

Where the Expertise of an Insurance Adviser comes in
Insurance advisers can significantly streamline the intricacies of insurance policies, especially auto-renewal and loyalty dynamics. Below are some ways an insurance adviser can provide assistance:

● Personalised Assessment: Advisers evaluate your insurance needs, considering your financial situation, goals, and risk tolerance, identifying coverage gaps or over-insurance.
● Market Analysis: Constant market monitoring allows advisers to provide insights into competitive rates, new products, and relevant regulatory changes.
● Navigating Auto-Renewal: Advisers can manage the auto-renewal process, ensuring optimum terms upon renewal and negotiating with insurers when necessary.
● Understanding Loyalty Benefits and Drawbacks: They evaluate loyalty programs, discounts, and service quality of your current insurer against market offerings.
● Regulatory Compliance: Advisers ensure your insurance portfolio’s compliance with current laws and regulations, educating you on regulatory implications.
● Educational Resource: They demystify complex insurance concepts and aid in informed and educated decision-making.
● Claims Assistance: Should you need to make a claim, advisers guide you through the claims process, ensuring a smooth experience and fair settlement.
● Record-keeping and Documentation: They assist with thorough record-keeping, providing regular reports and updates on your insurance portfolio, facilitating easier reviews and coverage adjustments.


The expertise of an insurance adviser significantly enhances your insurance policies’ understanding and management, ensuring sufficient protection while potentially saving money and time. Through personalised assessments, market analysis, and ongoing education, insurance advisers empower you to navigate the insurance landscape with confidence and clarity.


[1] Financial Conduct Authority – PS21/11: General insurance pricing practices – amendments.