Home insurance premiums set to stabilise

Home insurance premiums are showing signs of stabilising after a period of significant increases, according to new figures*.

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

21 January, 2025

More news

13 February, 2025

Life insurance is a vital safety net, yet misconceptions often prevent people from taking out protec

“It’s too expensive” Many believe life insurance is unaffordable, but policies are available for various budgets. Premiums can be surprisingly low, especially if you’re young and healthy. The

29 January, 2025

A study* has found that poor energy efficiency is costing households in England a total of £3.8bn i

Older generations are most affected, with 60% of over 65s living in energy-inefficient homes compared to 43% of 16 to 34-year-olds. This is partly due to a lack of awareness – over 65s are the least

23 January, 2025

Research* indicates that homebuying affordability has slightly improved in relation to income.

In the summer of 2022, the house price to earnings ratio reached a record high of 7.24. Since then, affordability has been slowly easing; in 2024, the average house price to earnings ratio went down t