The insurance company's method of tracking policy changes by adding new rows with start_date, end_date, and an active flag aligns with Type 2 SCD. This type is characterized by adding new rows to track changes over time, using effective dates to distinguish between current and historical data. Other SCD types do not match this pattern: Type 0 does not allow changes, Type 1 overwrites data, Type 3 adds columns for previous values, and Type 4 uses a separate history table, none of which are described here.