Whopping Premium Increase

masser

I had an invitation to renew my Buildings and Contents Insurance, currently with AXA through, Cover Direct. Nothing has changed except that the premium for 2012/13 was £215.75 has increased to a whopping £1024.09. Cover Direct say that AXA did not come in at the cheapest and their quote reflects a more competitive insurer! I don't really know why I bothered to speak to them, other than to register my disgust. The price comparison sites gave me 3 different prices for Privilige Insurance, alone. What is going on with Home Insurance, it all seems to be part of the Lottery. I ultimately bought a perfectly respectable product for £203.00 using the same detail as last year.

InsideInsurance

It depends on what scheme Cover Direct has with Axa, how its performing, if you fit with their current strategic direction etc.

I had 3 quotes from Axa underwritten policies recently with fairly similar T&Cs:

M&S: £300
Axa Direct: £350
AmEx: £850

The final was actually a ball park figure as they were declining based on career but they were going to do a referral and argue the point.

weejonnie

masser wrote: »

...What is going on with Home Insurance, it all seems to be part of the Lottery. ....

The usual thing I suspect - insurance company sets up new scheme with intermediary to buy in business. Intermediary writes lots of business. Insurance company finds out they have to pay out a lot more in claims than expected, compared to premium income (called loss ratio). Insurance company amends rates to a more realistic amount - possibly to try and recover losses. New Insurance company sets up a new scheme with a new intermediary . . .

Generally insurance schemes last for 2 or 3 years before insurers pull the plug - it may be that the scheme you had joined was in such a position.