Axa Home Insurance Massive Hike of over 40%

donglefan

Last year I paid £348.49, this year the quotation is £501.17 for the exact same policy.  There is an ongoing subsidence claim so I cannot move provider.
I phoned to ask why. They said the price increase was not associated with the ongoing claim, as the claim had not been made in the past year.  They mentioned increased in labour and materials. I said inflation was around 10% and the premium increase is over 40%.  They would not budge on the price.  I asked if I could be put through to someone who could explain the increase - no, it is commercially sensistive information.  I asked if I could access quotes for any other household policy at Axa and after much dissuasion was told they could put it through, but with no likelihood of it being cheaper.

Is there anything I can do in this situation other than suck it up?

DullGreyGuy

donglefan said:

Last year I paid £348.49, this year the quotation is £501.17 for the exact same policy.  There is an ongoing subsidence claim so I cannot move provider.
I phoned to ask why. They said the price increase was not associated with the ongoing claim, as the claim had not been made in the past year.  They mentioned increased in labour and materials. I said inflation was around 10% and the premium increase is over 40%.  They would not budge on the price.  I asked if I could be put through to someone who could explain the increase - no, it is commercially sensistive information.  I asked if I could access quotes for any other household policy at Axa and after much dissuasion was told they could put it through, but with no likelihood of it being cheaper.

Is there anything I can do in this situation other than suck it up?

You can read the overall considerations at https://www.ey.com/en_uk/news/2022/11/uk-motor-and-home-insurers-expect-to-make-largest-annual-loss 

EY has predicted a 30% average increase in Home insurance and so you arent too far above that. 10% is the average inflation but certain things have inflated much more than others plus as the article explains there are many other factors like last year managed to have spikes in dry heat, rain and cold causing spikes in subsidence, flood and escape of water claims. The industry as a whole made a 16% underwriting loss and most models are predicting these wild swings in weather are likely to continue 

donglefan

DGG, Thank you for your post.  The humility of your name raises a smile.  Best wishes

Annemos

It can be much more difficult to get an Insurance Policy after a Subsidence Claim, anyway. 

So it is usually recommended that you stay with the same Insurer who did the repairs.

(Good Practice within the UK Insurance Industry, is that the Insurer should continue to insure your property, if the repairs were done by them or with their approval.) 

DullGreyGuy

Annemos said:

(Good Practice within the UK Insurance Industry, is that the Insurer should continue to insure your property, if the repairs were done by them or with their approval.) 

This however gets difficult if you are buying via the increasing numbers of MGAs... they arent the ultimate capacity provider and if they switch who is the new underwriter isnt obliged to take on the risks of the prior underwriter. In some cases the capacity provider wont have many details of who they were insuring and dont necessarily offer insurance direct to consumers or even via traditional distribution mechanisms. These types of things are also much more likely to pull out of a market than a direct insurer or big household name

There was a very long post from a prior poster who ran into exactly this problem and struggled to find anyone to insure their property to inc subsidence (even at an unreasonable price)

Annemos

Yes DGG, it can get very complicated when that happens and it also take a lot of hard work by the policyholder to insist. 

I believe, that one needs to get to the bottom of any chain to see who the actual underlying Underwriter is. That is, ignore any companies that are in the middle (such as an MGA or those involved as Organiser Companies or quasi-brokers in setting up the insurance policy and selling it etc). 

Once that bottom Underlying Insurance Underwriter has been ascertained, the policyholder can proceed with that aim of staying with that original insurer, if they hear they are about to be dropped for whatever reason, by that bottom underlying insurer. 

As far as I can see, only if the underlying bottom underwriter has actually pulled out of the UK home insurance market completely, can they try to get away with dropping your property. (Or if the homeowner did something fraudulent etc or has a criminal case, so they could legitimately be dropped anyway.)

DGG, I am sending you a recent Ombudsman's case I found three days ago. This emphasises the "industry wide good practice" 

(I keep an eye out for this issue.) 

Many thanks to you. 

=================

Side note: This makes sense to me. It would seem really appalling on such an important issue as Insurance after Subsidence, if any homeowner could be left in the lurch, by any Insurance Company that has underwritten policies that are operating in the UK.

One would expect a warning to be put on such policies, if such a risk was inherent. 

SaverRate

Axa Home Insurance have changed there new customer policies to Bronze (Standard), Silver (Plus), Gold (Premier). I believe on the renewal it says you may wish to get a new customer quote as they have changed the categories. 
My parents did this and was roughly £50-£100 cheaper (on a £300 policy) than the renewal quote.
Obviously if you have an ongoing claim this may complicate things/they may not provide a new customer quote.