What can trigger a policy review?

A policy review is typically triggered by significant changes that impact the terms and conditions of the insurance policy. When there are substantial changes in the risk profile of the insured or shifts in regulatory requirements, it necessitates an examination of the existing policy to ensure it remains relevant and adequately covers the insured’s current situation.

For instance, if a business expands its operations or introduces new products, the risks associated with that business may change dramatically, requiring an assessment of coverage limits, exclusions, and premium adjustments. Similarly, if there are updates to laws or regulations affecting the insurance industry or specific sectors, these can influence how policies are written and enforced, prompting a review.

By performing a policy review in response to these triggers, insurance brokers and companies can maintain effective coverage and compliance while ensuring that policyholders are not over- or under-insured based on their current circumstances. This approach safeguards the interests of both the insurer and the insured by adapting to evolving risk landscapes and regulatory frameworks.