Report comment

Anon @ 15:48
As one of the specialist insurance brokers has commented: If 98% of claims fall under £580k, (SRA data) then it follows that 98% of the premium applies to that level of cover. The rest, up to £2m or £3m costs very little. It is not reasonable to expect premiums to reduce materially in return for a lower level of cover, because the claims experience is what it is.

If you experience a claim for £100k for example, having reduced your cover from £2m to £500k, the insurer still pays out £100k He doesn't reduce it by three quarters as you suggest in your comment.