How does the Claims and Underwriting Exchange (CUE) affect your home insurance?

If you don't claim on your home insurance, you might assume your renewal price with your current insurance provider would be roughly the same as last year or lower. But that might not be the case - and part of the reason could be thanks to a little-known database called CUE.

If you don't claim on your home insurance, you might assume your renewal price with your current insurance provider would be roughly the same as last year or lower. But that might not be the case - and part of the reason could be thanks to a little-known database called CUE.

Helen Phipps
Insurance expert
4
minute read
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Last Updated 22 MARCH 2022

What is the Claims and Underwriting Exchange (CUE)? 

The Claims and Underwriting Exchange – or CUE – is a central database with details of all incidents reported to insurance providers. CUE isn't limited to home insurance. Introduced in 1994, the central database is run and managed by the Motor Insurers’ Bureau (MIB), and holds millions of records relating to customers’ car, motorbike, home, travel and personal injury policies.

The main aim of CUE is to combat fraud. Having a single source of information about policyholders and incidents means insurance providers can easily check if they think something's a bit fishy. This helps stamp out fraudulent claims.

Across all types of insurance, detected insurance fraud claims in 2020 totalled £1.1 billion, with the average fraudulent claim rising to £12,000, up by 6% on 2019. The impact of insurance fraud means that honest policyholders end up paying more for their premiums than they need to. 

More home insurance words and phrases you want to understand better? See our home insurance glossary.

How does CUE affect my home insurance?

Every time you report an incident to your insurance provider – like if someone breaks into your shed or smashes a window in your home – it's recorded in CUE, whether you end up making a claim or not.

This system is designed to prevent fraud – for example, someone might call to ask if a claim is covered by their insurance. When they find out it's not, they could add the cover to their policy and then report the same claim, saying it happened on a different date.

If insurance providers spot 'incidents' on your record, they might think there's a higher chance of you making future claims, which could increase your premium. 

Of course, it's tempting not to let a new insurance provider know about your past claims – but remember, non-disclosure goes against the rules. If you 'forget' to tell all, you could find your policy invalidated – honesty is always the best policy.

What do I need to tell my insurance provider? 

In a nutshell, answer everything they ask you when you get a quote. The information you enter in the quote form is used by the provider to calculate your premium and the cover they can offer you. It's important to be honest during the process.

If you knowingly give your insurance provider wrong or incomplete information, they could refuse to pay your claim and invalidate your policy, which could make it harder and more costly to get insurance in the future. 

You'll also need to tell your insurance provider if your situation changes – for example if you move to a new house or buy a new car. 

See more on how to avoid invalidating your insurance policy

Don't forget that one way you could reduce your premiums is to use Compare the Market. We work with a variety of trusted partners to bring you choice and value in just a few clicks. Remember, whatever information CUE holds about any incident or claims history won't necessarily be viewed in the same way by all insurance providers. So start comparing.

Frequently asked questions

Can I check the CUE database to find about my claims history?

Yes, you can find out what information CUE holds about your claims history by filling out a Subject Access Request form on the Motor Insurers Bureau (MIB) website. However, it might be quicker and easier to simply ask your insurance provider. They should have a full record of your claims history, even if you’ve switched providers.

How long does CUE store my claims history?

Information about your past claims is held on the CUE database for six years from the date your claim was closed.

If an incident is reported but I don’t make a claim, will it still go on CUE?

Even if you decide not to make a claim, a reported incident will be logged with CUE and stay there for six years – no matter how minor. It’s up to insurance providers to then decide if there’s a risk involved that could affect the cost of your premium.

How much will my home insurance go up after a claim?

It depends on the type of claim you make. If it’s a relatively minor claim for a one-off incident, your insurance premium may not increase by very much, if at all. If it’s a major claim such as flooding, which could be an ongoing problem, the increase in your home insurance could be a lot more.

How can I stop my home insurance from going up after a claim?

One of the best ways to keep the cost of your home insurance down after a claim is to shop around for a better deal. While insurance providers may check your claims history on CUE, their views on past claims could vary. By shopping around, you might find the same cover at a cheaper price elsewhere.

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