Declining or accepting CPI on insurance renewals

As many of you know, when your insurance renewal arrives in the mail each year it generally increases for two reasons.

  1. You are a year older and
  2. The insurer will generally offer CPI increase to the sum insured and offer you a higher sum insured than the previous year to keep pace with inflation.

For two decades we have become accustomed to seeing these offers from insurers based on CPI of under 3% each renewal. This year we are seeing increases over 7%!

However, please be aware that you do not have to accept the increase to your sum insured.

You can decline their offer and some clients prefer to remove this feature from their policies altogether.

Please do not hesitate to touch base if you would like to discuss your options.