The policy lifecycle in insurance never ends. You have just reviewed the inspection report and submitted compliance. Time to relax? It’s time to consider renewal submissions and quotes. 

Since the renewal process begins 90-120 days before the expiration date, it doesn’t give you much time to cool down and take your mind off this insured.

Renewal is one of the most important parts of the policy lifecycle, and it brings steady income to all carriers, MGAs, and even retailers. With recent changes in the industry, some insurance companies go for automation, while others still rely on manual work. 

Outsourcing is still very popular among carriers, brokers, and MGAs, while some still prefer to keep the renewal process in-house. With that being said, let’s dive into the updated guide to renewal underwriting and best practices in 2025.

TL;DR (Too Long Didn’t Read)

• Renewal underwriting occurs when a policy term ends, involving a decision to keep, adjust, or end the policy.
• The process includes checking claims history, exposures, inspection reports, market conditions, and pricing.
• Renewals are vital for retaining profitable clients, improving terms, and removing bad risks.
• Common challenges include late submissions, incomplete data, and market volatility.
• Automation can help with repetitive tasks, but outsourcing is still the industry’s favorite solution.
• Outsourcing renewals to OIP InsurTech speeds up processing, ensures accuracy, and frees underwriters to focus on strategic work.

What Is Renewal Underwriting? 

Renewal underwriting occurs when a policy term is nearing its end. The underwriter conducts a review and determines which of the three outcomes will occur. The insurance company will either keep the client, adjust terms, or walk away from the risk.

The review includes checking the claims history, changes in exposure, inspection and audit reports, risk control measures, and market conditions. 

If done properly, renewal underwriting is supposed to keep profitable clients, improve pricing, and remove unprofitable risks.

For years, renewal underwriting was done by hand, and it remains highly relevant in 2025. Underwriters navigate lengthy email chains, delayed broker updates, and extensive data from various systems.

Why Renewals Matter in 2025

Renewals are crucial for retaining clients and preventing them from being lost to competitors. Competition is high, and slow or sloppy renewal processes can lead to clients being lost to other insurers.

Workloads are bigger, as the industry has spread across different states, LOBs, and insurance companies. Many underwriters manage hundreds of renewals in a short period.

Clients expect fast answers. Margins are tighter, and every pricing decision affects profitability. Renewals are also a chance to grow accounts. 

You can add new coverages or offer adjusted limits. You can reward clients who have improved their risk profile with better terms.

The Renewal Process

Most insurers follow the same general steps, but the difference is in how smoothly they are done. In 2025, many insurers are changing how they handle renewals. 

Some insurance companies use technology to speed up small parts of the process, but more often, insurers are choosing renewal outsourcing. This brings in skilled teams to handle the heavy work so that underwriters can focus on decisions, negotiations, and client relationships.

Outsourcing part or all of this work means you have a dedicated team preparing the renewal file. They collect and verify data, review exposures, and draft terms. Your in-house underwriters still make the final decision. But they get to start from a clean, complete file instead of building it from scratch.

Data Gathering

This step sets the tone for the whole renewal. Loss runs, exposure details, inspection reports, and broker updates all need to be in one place.

When this step is slow, everything else is delayed. Outsourcing teams can gather and organize this data early. They work ahead of deadlines, so the underwriter always has what they need before pricing starts.

Risk Review

The claims history is checked for trends. Are claims going up? Are they more severe? Did any claims reveal a gap in coverage or safety?

Exposure changes are reviewed. If the client has grown, moved locations, or added operations, those changes must be captured. This is an opportunity to add more coverage and profit from the renewal itself.

A good risk review means there are no surprises later in the policy term.

Exposure Check

Key values, such as property limits, payroll, or sales, are confirmed. Outdated figures can lead to underpricing or overpricing. Exposure checks also identify risks that may require higher limits or additional coverage.

Pricing and Terms

Pricing and terms are where the underwriting strategy meets market reality. Rates may fluctuate based on loss history, inflation, and reinsurance costs. 

Terms can be adjusted for deductibles, coverage limits, or exclusions. When the prep work is done well, this step is faster and more accurate.

Documents and Submission

Renewal terms are put into the correct format and sent for internal review. The package must be clear, accurate, and ready for broker delivery.

Outsourcing teams can prepare these documents so the underwriter only needs to review and approve. 

Broker and client talk

Once the renewal terms are set, they are shared with the broker or client. Any changes should be explained clearly. Fast, clear communication keeps relationships strong and reduces back-and-forth.

Common Renewal Challenges

Renewals may follow the same steps, but problems still happen. One common issue is late submissions. Brokers or clients sometimes send updated information only days before the renewal date. 

Another challenge is incomplete data. Missing loss runs, unverified exposures, or outdated reports can significantly slow down the process. 

Market volatility is also a factor. Inflation, reinsurance changes, and new regulations can all affect rates. Underwriters need time to apply these changes properly. 

If you are a carrier, broker, or MGA, you can overcome all of these challenges by outsourcing your renewals. Outsourcing teams can help by taking over the hard work, while your underwriters focus more on strategies, client analysis, and improvement of your business.

Automated Renewals

Some insurers now use tools to collect data, read documents, or send reminders. These tools save time on repetitive work.

But tools alone do not replace the need for skilled review when talking about renewals. Data still has to be checked, compared, and understood.

When outsourcing teams use these tools, they do the first pass quickly and leave the underwriter with clean, complete files.

Why Choose Renewals Outsourcing

Renewals outsourcing helps insurers manage heavy workloads without adding permanent staff. It gives you a flexible way to scale during busy renewal seasons.

The benefits include handling more renewals without overloading your team, faster turnaround, and fewer missed deadlines. Who doesn’t want consistent processes and document quality, while freeing underwriters to focus on strategy and relationships, and maintaining better broker and client experience?

Outsourcing is not about giving up control. You still set the rules, review the work, and make the decisions. The outsourced team ensures that every renewal file is complete, accurate, and ready for your approval.

Outsource Renewals with OIP Insurtech

Need help with your renewals? We got you covered.

OIP Insurtech provides expert renewal underwriting tailored to your specific needs and regulatory requirements. We act as an extension of your underwriting department. Our renewal team is trained to follow your processes and systems.

Whether you choose renewals with your sign-off or allow us to handle the process end-to-end, you will receive strategic underwriting support from a trained and experienced team. 

If you’d like to know more about our renewal underwriting outsourcing, visit our Expert Underwriting Operations webpage.

The Bottom Line

Renewal underwriting is more demanding in 2025. Workloads are heavier, timelines are shorter, and competition is tougher.

Technology can help with some tasks, but the biggest gains come from freeing up underwriters to focus on decision-making. Renewals outsourcing is a proven way to make that happen. It keeps your process moving, your files complete, and your clients satisfied.

If you want a smoother renewal season, a stronger portfolio, and less pressure on your team, click here to get started.