Unexplained insurance premium hike?

by Readers Question

9:27 AM, 2nd October 2020
About 2 months ago

Unexplained insurance premium hike?

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Unexplained insurance premium hike?

Underwriter is Allianz. Previous annual increases, with no changes to the portfolio, have been 7.6%, 7.5, 4.6, 4.5. This time its 17.7%.

The broker is discussing it with the insurer and I am looking at going elsewhere of course.

I wondered whether there has been a general increase in LL insurance premiums, because I can’t find any evidence. Is it covid-related?

Thanks – Gunga Din


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Comments

Neil Patterson

9:31 AM, 2nd October 2020
About 2 months ago

Hi Gunga Din,

Jason Mclean is our partner insurance expert and I will ask him to see if he can shed any light on your situation and general market conditions post Covid-19.

He also runs our own insurance team so may be able to help out as well 🙂

Jason McClean

10:16 AM, 2nd October 2020
About 2 months ago

Hi Gunga Din,

There are many reasons why the policy price may be increasing; from claims history to inflationary rises to profiteering. I don't know your case in detail so cannot advise why your price is going up.

17.7% suggests an event of some kind pushing the price up; not likely to be Covid unless your insurer is particularly exposed elsewhere on it.

Happy to review this with you over the phone if you like, basically all I need is the total sum insured, any claims history in the last 5 years and I'll be able to tell you whether we could save you money or if your current insurer is doing a good job on price.

If I can help, please call on 01832-735388 or drop me a line at jason@thehomeinsurer.co.uk.

Whiteskifreak Surrey

12:15 PM, 2nd October 2020
About 2 months ago

I would say there will be a general insurance premium increase by all insurers. Majority of them, if not all, had huge losses due to Covid situation and a sheer number of claims.
I can see that at work where I work with insurers. They are trying to recuperate the losses. I would expect similar increase in car, pet and - first of all - travel insurance (with Brexit factored in the expected increase migh be in a region of up to 50% - if only).

Graham Bowcock

18:12 PM, 2nd October 2020
About 2 months ago

Reply to the comment left by Whiteskifreak Surrey at 02/10/2020 - 12:15
I gather that car insurance payouts have been very low due to less vehicle movements (our family car has only done 3,500 miles in the last year instead of about 10,000). We were insured with Admiral and they gave all customers a rebate of £25 per policy to reflect the lack of claims coming in this year. Renewal was also not much different than previous years.

Anecdotally claims for losses such as burglary also fell as people have been at home more.

Can't speak for other types of insurance. Perhaps Allianz has lost the appetite for this market; we have had this with renewals, LV didn't want our property business last year (no claims history), but our broker sorted out a new policy elsewhere.

AMAZONIA STARBUCK

12:54 PM, 3rd October 2020
About 2 months ago

Just the usual profiteering ,vote with your feet.
If you must negotiate with them always ask the adviser if they have had a 17% pay rise?
No one I have asked has ever had one.
I am back with Saga cheapest by miles this year.
They have previously tried the 20% rise and were promptly dumped.All of these attempted rises despite zero claims.

Mrs A

14:38 PM, 3rd October 2020
About 2 months ago

Yes, there will be increases across the board this year. Recent FCA court case pushing Covid claims for Business Interruption onto property insurers pencils in an additional £18bn of claims to UK insurers this year, on top of all the valid event cancellation claims, Travel claims, liability claims to come. Plus all the UK floods, international hurricane events, etc, etc. Insurance isn’t a magic money tree. Rates have to go up to cover claims. Why assume it’s profiteering?

AMAZONIA STARBUCK

1:37 AM, 4th October 2020
About 2 months ago

Why do I assume it's profiteering?
Because they have been doing it for the last five years!
Has you income went up 20% this year Mrs A?
(They have been doing it the last 5 years as a landlord ,the last 30 as an insurance consumer)

Gunga Din

11:27 AM, 10th October 2020
About 2 months ago

"Just the usual profiteering ,vote with your feet."

I have. Allianz renewal was £2200. initially they wouldn't budge but the broker got it reduced by £100. Other quotes included Direct Line, Aviva (through the same broker as Allianz) and NFU between £1500 and £1700 as likely-for-like as possible for valid comparison.

Thanks Amazonia Starbuck.

One tip if you want legal cover - NFU charge £85 for the whole lot (11 units incl. 3 shops in 4 buildings) whereas often there is a per tenancy fee of typically £30.


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