Insurance premium increase

whiteoaks7

whiteoaks7

Well-Known Member
Joined
29 Nov 2002
Messages
570
Location
South Wales, UK
www.seasolutions.co.uk
So Pantaenious sent me my yearly insurance renewal and I was about to pay when it occurred to me to wonder why the premium had increased. When you think about it the risk is about the same and the value of the insured item is, if anything, lower than last year. I've made no demands on them, no claims, nothing that I can see would give them cause to increase the fee. So have I missed something, like a tax hike or what? I have asked P to explain but they don't seem in a hurry to reply... Or is it like entropy - just keeps increasing no matter what we do?
 
Car insurers increase the premium for loyal customers every year - often by big leaps - and hope they don't move. But for new customers will give fantastic deals. So far I've found boat insurance doesn't follow that irritating path but it might be worth shopping around to find out.

Haven K-J or Amlin have been pretty good on price increases and I stuck with them after claiming, for the first time in decades, and for a broken mast. They dealt with the claim so well that I wanted to stick with them.
 
There has been a tax increase. Can't remember from what to what but I think it was sneaked in at the last budget.
One of those invidious stealth taxes that come in unseen and hurt everyone.
 
Y yacht gave me a a very apologetic letter explaining the rise in my premium by a whole £15 can't complain, very helpful and cheap for the cover
 
My insurer (NNNPD) sent me a quote for 2018 which was higher by a fair margin despite no claims on a well maintained boat. I phoned them and said I'd had a better quote from another insurer. They called me back later in the day with about a 15% discount to keep my business. I made them squirm a bit when I asked why they didn't give me their best price first time!
 
savageseadog said:
Pantaenius have had some massive claims last year, notably the hurricanes
Click to expand...

Exactly this.

I spoke to a boat insurer earlier this year who said that premium increases were inevitable due to the massive claims in the Caribbean last year. Although we live in a relatively benign environment claims-wise, our insurers (or, if not, their insurers) operate on a global basis.
 
Tax on insurance premiums went up last year too if I recall correctly.
Lots of prices for lots of things have gone up .
Increases in price due to inflation are not unknown to those of us who have been on the planet a few decades.
 
If you are looking for the primary culprit for premium increases in addition to IPT which is galloping to catch up with VAT rates then you might wish to read about the Ogden rate discount. In simple terms in the past on long term personal injury claims or say negligence by the NHS resulting in long term healthcare there was a rate for increase however the govt changed this overnight at not only a cost for insurers of hundreds of millions but also blew a massive hole in the NHS reserves much to the annoyance of our esteemed chancellor. The offending person has since been removed from govt but the damage has been done and it's only recently any further change has been progressed. Rate increases are put across all lines of business if it's thought they can take them however some markets are quite soft so cannot take the increaseYou also have brokers seeking increased commission to fund all the expenditure of the Insurance distribution directive , GDPR and increase in fees for the FCA and FOS etc by way of levies The way most brokers will retain your business is to shave something off the commission they receive even if the base net premium charged by insurers remains constant . it would be invidious to name particular brokers but do you know how much commission is charged. Also brokers have historically relied on add on sales to fund business margin and this is becoming harder to do due to regulatory focus maybe .
 
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