If more people are making claims within an insurance pool, the cost to the insurance
company rises as a result. The insurer may put up their premiums in order to cover their
increase in costs, as well to ensure that they have the necessary funds to pay out for any
claims made.
Insurance companies will often see more claims being made due to world events, with a
recent example of this being climate change and the resulting increase in adverse weather
conditions over the past year.
Storm related damage in particular has caused a significant increase in the amount of claims being made for both motor and home insurance. The Association of British Insurers (ABI) reported in December 2023 that insurers are expected to pay out an estimated £560 million due to Storms Babet, Ciaran and Debi from October and November of the same year.
How is my renewal price calculated?
Why has my renewal price gone up?