In short
A premium loading is an increase to the standard premium that an insurer applies to reflect a higher assessed level of risk.
A loading is an addition to the normal premium, often expressed as a percentage, applied when the underwriter assesses your risk as higher than standard. The cover is still offered; you simply pay more for it than someone assessed at standard rates.
Loadings commonly reflect health conditions, certain occupations, hazardous hobbies, or lifestyle factors such as smoking or higher body weight. The size of the loading depends on the insurer's view of the particular risk.
Because insurers underwrite differently, a heavy loading from one insurer is not the final word. Another may take a more favourable view of the same history, which is why comparing across insurers can make a real difference to the price you pay.
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