Policy Cancellation

In order to process a policy cancellation request, you must access the Policy Cancellation List that displays all the available Policy Cancellation requests.

1. In the main menu, navigate to Contract Management > Policies > Cancellations. The Cancellations list is displayed.
2. In the list:
• Add a new Policy Cancellation record, by clicking Insert.
• Delete a Policy Cancellation record from the grid by selecting it and clicking Delete.

Alternatively, you can initiate the cancellation flow explained above from the policy form. Click the Cancel Policy button on the policy.

After clicking Cancel Policy, the Cancellation Request form opens. At this point, the cancellation is in Draft status. Follow the steps below:

1. Choose a Reason Type. This triggers the calculation for the Requested Cancel Date and the Final Cancel Date fields as per the table below. The Requested Cancel Date is the final end date used further on for calculating the refund.

   Reason Type	Requested End Date	Final End Date
   Cancelled	This reason type is the only one that accepts backdating cancellations. In this case, the Requested End Date is overwritten. This is also the case for renewed policies.	It is automatically filled in with the Cancellation Notification Date + 21 days to go. If the Requested End Date meets the rule explained above, the Final End Date is filled with the Policy Begin Date. In case of backdated cancellations, the Final End Date is overwritten. This is also the case for renewed policies.
   Cancelled by Client	Manually add any date.	If Notification Date -Policy (Issued) Date <= 15 then this field will be automatically filled in with the Policy Begin Date with the possibility to be adjusted. Otherwise this will be automatically filled in with the Notification Date + 21 days to go.
   Closed by Claim	It is pre-filled with Notification Date + 21 days from the present on.	It is filled with the value from the Requested End Date but with the possibility to edit.
   Decline by screening	In this case, it can be manually filled in with any date.	It can be filled with the value from Requested End Date but with the possibility to edit.
   Insured Death	In this case, the Requested End Date is set to any day before or including the day of the request for cancellation, same as Property sold.	The Final End Date is filled with the value from Requested End Date but with the possibility to edit, same as Property sold.
   Pet passed away	The Requested End Date is set to any day before or including the day of the request for cancellation, same as Property sold.	The Final End Date is filled with the value from Requested End Date, but with the possibility to edit, same as Property sold.
   Property sold	The Requested End Date is set to any day before or including the day of the request for cancellation.	The Final End Date is filled with the value from Requested End Date but with the possibility to edit.
   Withdrawal	In this case, it is automatically filled in with the Policy Begin Date.	In this case, it is automatically filled in with the Policy Begin Date.

2. Fill in the Cancellation Notification Date field, which is the date that the system is going to use as the effective date for the policy version in status Cancelled.

3. The Has Claims toggle is not editable and it shows whether claims were registered or not for this policy.

4. From the Resolution Reason drop down, choose an appropriate option from: Product reasons, Other reasons, Company Reason, Withdraw.

5. Add a comment explaining the reason why this policy is undergoing changes.

6. Click the next section, Policy Details.

This section shows details about the policy to be canceled, such as Policy No, Policy Start Date, End Date, Payment Frequency, and so on. Some of the fields become editable after you register the cancellation and it transitions from status Draft to In Progress.

The Premium Return section has details regarding the chosen policy, the fields are automatically filled. The returned premium is the amount refunded to the client when a policy ends early, calculated as the paid premium minus the earned premium, meaning the client gets back the portion of their payment that corresponds to the period they were not covered.

If after calculations, the system finds that the client is entitled to a refund for the unused portion of the premium, this section becomes editable. In this situation, client receives a refund of the premium for the period not covered, which is the period between the backdated cancellation date and today for backdated cancellation, and the period after the future cancellation date for future-dated cancellation. If the returned premium is higher than 0, then a Premium Reimbursements request is created in Draft status if the data for the beneficiary is incomplete, or Approve if the data was fully filled in during the cancellation request. These fields become editable when the cancellation is in In Progress status, after you click Register.

Fill in the fields based on the type of payment:

Bank Transfer

• Payment Beneficiary: choose from Policy Beneficiary, Insured, Policy Holder, or Other Person. For the first three options, the data is automatically filled in. For the last option, you need to add:

  • Payment Beneficiary First Name;

  • Payment Beneficiary Last Name;

  • Payment Beneficiary PIN;

• Bank: pick the bank from the list.

• IBAN Account: type in the IBAN account.

Direct Debit UK

For Direct Debit UK or SEPA, if the policy is paid with direct debit, then a valid mandate is in the system. Direct Debit cancellation behavior varies based on cancellation date timing relative to invoice due date and payment status, determining whether premium reimbursement is required.

Tick the checkbox Use current mandate to prefill the fields. Otherwise, fill the fields for Direct Debit UK:

• Payment Beneficiary: choose between Contractant and Other person;

• Account Holder: prepopulated with the First Name of the contractant;

• Account Number;

• Bank Sort Code.

Direct Debit SEPA

For Direct Debit UK or SEPA, if the policy is paid with direct debit, then a valid mandate is in the system. Tick the checkbox Use current mandate to prefill the fields. Otherwise, fill the fields for Direct Debit SEPA:

• Payment Beneficiary: choose between Contractant and Other person;

• Payer first name: prepopulated with the First Name of the contractant;

• Payer last name: prepopulated with the Last Name of the contractant;

• Payer PIN/UTR: prepopulated with the PIN of the payment beneficiary;

• IBAN;

• Bank branch;

• Amount type;

• Amount;

• Begin date;

• End date.

Recurring Card Payment

A recurring card payment is an automatic, scheduled charge to a policyholder’s debit or credit card to keep their coverage active. This option is available only if the policy payment type is set as recurring card payment.

If selected, the system creates an outgoing payment for the reimbursement and generates a refundCardPayment Payment HUB event using the saved card token so the refund is sent via the recurring card provider, then updates the outgoing payment to Closed when the provider’s async confirmation is received.

Click Propose Change Request for it to go for approval. Click Cancel to cancel the whole process.

Approving the request for policy cancellation requires the intervention of a Policy Admin Manager who holds the necessary security rights to approve or reject such cases.

1. Click Propose Change Request to move the cancellation status from In Progress to Pending Approval. At this point, the user with Policy Admin Manager security role fills in the Approval Date, Resolution Reason, and Comments section and clicks one the following:

   • Decline: the status changes from Pending Approval to Declined. The process reaches the end without the possibility of starting again.

   • Approve:

     • If the Returned Premium Amount is equal to 0 then the process ends and the status changes from Pending Approval to Registered.

     • If the Returned Premium Amount is not equal to 0 then the process continues with the Premium Reimbursement Request explained on the Premium Reimbursements page of this guide. In addition, the status changes from Pending Approval to Registered.

2. Or click Cancel to revert the changes, and transition the cancellation request from the In Progress status to Draft. Now, you can restart the cancellation flow or click Revoke to cancel the cancellation.

You can cancel a policy when it is subjected to the MTA process, and the MTA is in Processed status. The condition is that the MTA's Requested Effective Date is lesser than the cancellation Final Cancel Date.

In the example below, a policy has an MTA in the Processed status.

1. Open the policy's MTA record and check its Requested Effective Date. In this case, it is February 19th, 2026.

   

2. Click Cancel, and the MTA is successfully canceled.

3. The status of the policy is now Pending, and when it reaches to the Final Cancel Date, it transitions to the Canceled status.

Let's say that for the same MTA record, the cancellation Final Cancel Date is February 18th, 2026. If you click Cancel on the MTA change request, a warning message is displayed, and you cannot cancel the MTA "as long as there are MTA's issued with an effective date higher than cancellation final end date!"

There are 3 possible scenarios then you choose to subject to Cancellation a policy that is to be renewed:

Scenario 1

In case you are subjecting to a Cancellation process a policy to be renewed, while the automatic renewal offer process is going on, then when the cancellation process is completed (Approved), the renewal offer corresponding to the cancelled policy is invalidated after a call from Policy Administration. An error message is displayed, as the quote is invalidated.

Scenario 2

If during the Cancellation process the renewed policy is issued based on the previously issued renewal quote, the Cancellation process cannot be completed as long as the new renewal policy is in a Proposed, Issued or In Force.

Within the initiated cancellation journey, a warning message is displayed that persists until the renewal policy status is either Proposed, Issued or InForce.

Scenario 3

In case a Cancellation is In Progress or Accepted, then the Renewal Offer process for that policy is not triggered.

You can cancel an already Registered cancellation for a policy if the Final Cancel Date of said cancellation is greater than the system date. Another condition is for the policy to have no MTAs in Accepted status with the Final End Date greater than the Final Cancel Date of the cancellation.

In the example below, the cancellation is Registered, and the Requested Cancel Date is set as greater than the system date.

Click Revoke Cancellation. The cancellation record transitions from the Registered to the Canceled status, and the policy transitions to In Force.

If the two conditions for this cancellation are not met, the cancellation is not possible, and an error message is displayed.

The Policy Cancellation statuses are as follows:

The system automatically informs the client of the Policy Cancellation process for their insurance contract through a specific notification sent to them.

The policies which are included in the notification are those which have the Policy Status = Decline by screening/ Closed by Claim/ Withdraw on client’s request/ Cancelled, transitioned due to a Cancellation process.

The notification is sent when the policy status is changed to a specific cancellation status, on the effective date.

The following are the tokens used in the notification:

• Contractor name;

• Policy number;

• Insurance type;

• Policy End Date (new End Date) - the Effective date from the Cancellation process which will be updated on the last active version of the policy;

• Email template name : HomeInsurance_ClientPolicyCancelledNotification.

Similarly to the cancellation process, the system informs the client of the Policy Lapsing process for their insurance contract through a specific notification sent to them.

The Policies included in the notification are those which are in Lapsed status. Policies in Suspended status with a suspension duration of zero transition directly to the Lapsed status. In business terms, this means the policyholder loses coverage right away, without a grace period or opportunity for reinstatement. The lapse date is automatically determined based on the due date plus any applicable grace period and suspension duration.

The following are the tokens used in the notification:

• Contractor name;

• Policy number;

• Insurance type;

• Email template: homeInsurance_ClientPolicyStatusLapsed.

The scenarios below illustrate how Payment Hub handles payment retries for cancelled policies:

• Card

  • One-time card payment

    • Unpaid invoice, cancellation before due date: the invoice is issued before cancellation, but the due date falls after it. A payment retry is initially scheduled; however, once cancellation occurs, retry logic is disabled to prevent further attempts. No premium reimbursement applies.

    • Paid invoice before cancellation: both invoice issuance and payment occur before the cancellation date. Since payment succeeded, no retry is scheduled. The policy is then cancelled, and any eligible unused premium may be refunded by the insurer.

  • Recurring card payment

    • Unpaid invoice, cancellation before next billing cycle: the invoice is issued before cancellation (e.g., 10 days), with a due date after cancellation. A retry is originally planned for the next cycle, but cancellation stops all future billing cycles and retries. Premium reimbursement is applied as needed.

    • Paid invoice, cancellation after last payment processed: the invoice and payment occur before cancellation, and the system has already scheduled the next cycle’s retry. When cancellation is processed, all future billing and retries are terminated. A refund is issued for any unused premium, if applicable.

• Direct Debit

  Depending on when the cancellation date is and whether or not the invoice was paid, the payment retry has different behaviors, which also affect whether or not premium reimbursement should be made:

  Invoice Date	Due Date	Cancellation Date (requested by client)	Invoice Paid	Payment Retry	Premium Reimbursement	Comments
  Before cancellation (7 days before due date)	Before cancellation	After due date	Paid	No retry	Yes, if partial unused coverage period remains (pro-rata)	Policy was active when payment collected. Refund only if cancellation effective mid-term.
  Before cancellation (7 days before due date)	After cancellation	Before due date	Unpaid	Scheduled retry	No reimbursement	Payment blocked due to cancellation
  Before cancellation (7 days before due date)	After cancellation	Before due date	Unpaid	No retry (not yet initiated)	No reimbursement	Cancellation effective before debit date - stop payment creation.
  Before cancellation (7 days before due date)	Before cancellation	After due date	Paid	No	Payment valid; retain premium
  After cancellation	After cancellation	Before invoice generation	n/a	n/a	n/a
  Before cancellation request	After cancellation (effective future date)	Future-dated cancellation	Unpaid	Scheduled	No reimbursement	Policy remains active until future cancellation date - valid billing.
  Before cancellation request	After cancellation (effective future date)	Future-dated cancellation	Paid (incl. delays from the bank)	Scheduled	Yes, if partial unused coverage period remains (pro-rata)	Invoice period extends beyond policy termination; payment to be refunded
  Before cancellation (7 days before due date)	Before cancellation	Cancellation requested but withdrawn before effective date	Paid	No	No reimbursement	Cancellation revoked - normal premium flow resumes.
  Before cancellation (7 days before due date)	After cancellation	Cancellation backdated (retroactive)	Paid	No	Yes	Backdated cancellations trigger partial refund of collected premium.