Home insurance premiums set to stabilise

Premium income for home and motor insurance has been rising sharply in recent years. In 2023 the growth rate was 8.8%, but in 2024 this slowed to an estimated 7.9% and is expected to keep easing in the coming years.

Easing pressures

Insurers had been grappling with rising claims costs due to inflation, supply chain disruptions and an increase in extreme weather events. However, market conditions have improved thanks to a reduction in interest rates. Premium income growth is therefore predicted to be 5.1% and 4.5% in 2025 and 2026 respectively – significantly closer to the average growth rate of 4% which was recorded between 2010-2019.

Market outlook

Experts predict that the trend of premium stabilisation will continue into 2025, bringing relief to policyholders who have faced steep hikes over the past two years. This shift may also encourage increased uptake of home insurance as affordability improves.

Get covered in 2025

Now is the perfect time to review your cover and ensure your home insurance policy still meets your needs. Contact us for professional advice.

As with all insurance policies, conditions and exclusions will apply  

*EY, 2024