Definition - What does Renewal mean?
Renewal, in the context of insurance, refers the continuation of coverage. The policyholder extends their contract with the insurance company to continue their current coverage for a specified period. The insurance company typically invites the policyholder to renew the policy near the end its term.
Insuranceopedia explains Renewal
Policyholders who are satisfied with their coverage often agree to renew their contract to continue coverage as any lapse can result in unexpected expenses or other complications, such as the inability to receive the same coverage at the same rate as before. Therefore, it is most advantageous for a policyholder who is content with their policy to renew their insurance contract when they are given the option to do so.