After the death of her husband, Kay Lawley received renewal quotes for their home and car insurance from Ageas, which increased by up to 15%. Specifically, her car insurance quote rose from £301 to £348, and her home and contents policy increased almost 12%, from £1,039 to £1,161. Upon inquiring about these increases, Lawley was informed that the changes were due to automated processes without further explanation provided.
Newly bereaved individuals often experience higher insurance costs as many insurers categorize a single policyholder as higher risk. This phenomenon is said to extend to divorced or separated individuals as well. Analysts note that pricing is determined by algorithms that assess individuals against the claims history of similar profiles, taking into account factors like age, profession, and marital status. Critics argue that this bereavement-related pricing practice is particularly insensitive, especially for those adjusting to the loss of a partner.
Others have reported similar experiences. For instance, Alison Roper learned that her homeowner’s insurance would cost more following her husband’s death, despite having measures in place, like large dogs, to help secure the property. Another family noted a substantial increase in their renewal quote with Swinton Insurance after the main policyholder passed away, despite no other changes in the household.
The Association of British Insurers clarified that providers have the discretion to set prices based on their defined risk appetite. They did not comment on particular cases or the prevalence of bereavement premiums. In response to public concerns, Ageas acknowledged shortcomings in its process with Lawley, refunding the additional premiums charged and stating that she would lose the joint discount upon renewal.
Fairer Finance, a consumer advocacy organization, criticized the lack of transparency in how insurers set rates and called for regulatory intervention to clarify pricing practices.
Source: https://www.theguardian.com/money/2025/nov/15/bereavement-penalty-insurance-premium-rises-ai