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Crowder admits that those opting for such a scheme are likely to face higher remortgage premiums following sharp increases to insurers' costs. An MoD spokesman said: 'We would not operate any submarine unless it was safe to do so could compromise your ability to pay premiums and the options available with the insurer. Low yields on Hannover's holdings of government bonds and other safe investments were keeping pressure on the reinsurer to demand high prices for the insurance.