Why might an insurance company choose not to renew a policy?

An insurance company may choose not to renew a policy primarily due to excessive claims made by the insured. When a policyholder makes numerous claims, it indicates a higher risk profile for the insurer. Excessive claims can lead to increased costs for the insurance company and may suggest that the policyholder is more likely to make future claims. As a result, the insurer may determine that renewing the policy poses an unmanageable financial risk.

Other elements such as ownership changes or premium negotiation do not directly relate to the insurer's assessment of risk associated with claims history. Therefore, while low claims history is generally favorable and a request for a lower premium is part of negotiations, they do not serve as significant reasons for non-renewal compared to the implications of excessive claims.