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Get in touch
- Source Insurance, Global Reach, Cardiff, CF11 0SN
- [email protected]
- 02920 265265
- Monday to Friday: 8.30am to 5pm
- Source Insurance, Global Reach, Cardiff, CF11 0SN
- Support 02920 265265
Rising Insurance Premiums
Why Has My Insurance Premium Risen?
As the administrator of your policy, we’ve searched our panel to find you the best price that our insurers offer for the cover you need.
But life changes. So, if your cover requirements have changed, then let us know as this may alter the way in which your premium is calculated and could potentially lead to a price reduction.
Rising Insurance Premiums across the market
As we all know, the cost of living means everyone is feeling the squeeze financially.
This is no different for insurers, who are experiencing heightened claims volumes alongside increased administrative and running costs. In particular the costs incurred when paying out claims due to:
– Worldwide shortages of materials
– Labour shortages in the construction industry
– Increases in alternative accommodation costs
In short, premiums are rising because the cost prices for insurers are increasing.
You can read about the rise in home insurance payouts here.
How does insurance work?
Insurance works by pooling together every policyholder’s premium fees.
These fees are then stored as a reserve in the event of a claim being made. So, claims and losses are taken from this pool and used to reimburse policyholders claiming from their insurers. The contributions of the many fund the losses of the few.
As the volume and costs of claims increase, naturally, the reserve pool needs to grow to reflect this. This, in turn, increases the size of the premiums paid by policyholders.
Are you having difficulty making your payments?
If you are having difficulties making your payments you can find advice on the Financial Help section of our site.