What is one reason a policy may be referred for renewal?

A policy may be referred for renewal because there are changes in the risk profile of the insured. This is an important consideration as the risk profile directly impacts the insurer's evaluation of the policyholder's potential for future claims. Changes in factors such as the insured’s health, driving record, property condition, or business operations can alter how the insurance company views the associated risk.

The renewal process allows the insurer to reassess the policy based on the latest information, ensuring that the coverage and premiums are appropriate for the current risk. If the risk profile has worsened, it may lead to higher premiums or changes in coverage. Conversely, if the risk has improved, it may result in lower costs or expanded coverage options.

This reason closely ties to the fundamental practices of risk management and underwriting in insurance, reinforcing why a renewal referral is necessary when such changes occur. The other options may describe circumstances surrounding policies but do not fundamentally highlight why a formal renewal process is triggered.