Salary/Income Insurance against Redundancy

ctmsco86

In January 2020, I took out unemployment insurance, basically to cover me upto a years salary if I was made unemployed. 

Then obviously Covid hit, and the insurers kept putting my premiums up they went from circa 40£ to start with and by the time I couldn't afford it anymore, it was over 100£ per month.

They told me this was because "The pot was getting smaller due to the increased number of people being made unemployed due to covid"
They also told me, that because Covid hit during my initial "grace period" should I be made unemployed due to covid, I wouldn't be covered. (Thankfully it never came to that)

However, now, I'm looking for advice on if this is legally acceptable to do, they basically kept putting up the price knowing fine well that when Covid hit, this cover was stopped across the markets, surely that falls under competition laws? I paid over a year of premiums before I could no longer afford it, it went up 3 or 4 times.

Did anyone else have this issue or have any advice on what/if anything can be done?

Craig

dunstonh

They told me this was because "The pot was getting smaller due to the increased number of people being made unemployed due to covid"

Which is correct.
Although it wasnt just due to Covid.  Whilst regular premium PPI was not one of the bad types of PPI, the PPI issue had damaged its reputation and most providers pulled out.  So, the pool was already much reduced before Covid.   Covid pretty much finished it off with most people being told their policies were being cancelled.  Only a handful remained open but with a premium increase.

However, now, I'm looking for advice on if this is legally acceptable to do,

Yes it is.   Pricing on PPI is not fixed at the outset.   So, they can adjust the premiums just like car insurance and home insurance.

surely that falls under competition laws?

Don't know why you would think that.  No it wouldn't.

Did anyone else have this issue or have any advice on what/if anything can be done?

There is no wrongdoing here.  The company is free to set its pricing and you are free to no longer pay it if you don't like it.