In a guaranteed renewable policy, what change can insurers make compared to other types of policies?

In a guaranteed renewable policy, insurers are allowed to make changes to the rates for policyholders within a specific class. This means that while the insured has the right to renew the policy for as long as they pay the premiums, the insurer can increase the premiums based on the characteristics of the group or class of policyholders rather than on an individual basis.

This characteristic differentiates guaranteed renewable policies from non-renewable or other types of policies where the terms and rates are fixed, and policyholders cannot have their rates adjusted based on broader class factors. Thus, while the insured cannot be denied renewal as long as premiums are paid, the insurer retains the ability to adjust the pricing structure based on actuarial data and the overall risk profile of the class, which is vital for maintaining the financial viability of the policy.

This protects the insurer from significant losses and ensures that the products remain sustainable while providing some level of long-term security to policyholders.