22% Annual Increase

I have a car and household policy - I get a letter today stating new premiums from 01st July and its a 22% increase! I am completely shocked and disappointed. I claimed a windscreen - my first and only claim with them and this is what happens. When I phoned to clarify that I was not mistaken the consultant confirmed the increase percentage and told me that we could negotiate this if I wanted to. I want to understand why this is done? Why put premiums up by 22% to begin with? Is this done in the hope that most people don't phone and \Negotiate"their annual increase? This is disgusting and perhaps it should also be reported to the insurance ombudsman?<br> """