The latest from Pearson Ham, who have been tracking UK Home and Motor insurance premiums;
Pearson Ham Group’s latest Premium Price Index for May reveals that home insurance prices continue to increase, albeit at a slower pace compared to previous months. The average home insurance premium has now surpassed £420, following a 0.4% rise in May. However the year-on-year price comparison continues to decrease, down from a peak of 42% in February to 37% in May 2024.
The trend in home insurance pricing has varied significantly across regions. Northern Ireland saw a substantial 1.5% increase in May, leading to the highest year-on-year price growth in the UK at 55%. London also experienced one of the largest year-on-year increases at 44%.
Stephen Kennedy, Director at Pearson Ham Group, said:
“The continued increases to home insurance premiums in May will add further spending pressure for consumers but this has been primarily driven by the extreme weather events we witnessed last winter combined with ongoing claims inflation. We anticipated at the beginning of the year that achieving consistency in home insurance pricing would be challenging for insurers. As we approach the half-year mark, it has proven considerably more difficult than expected.”
In contrast, the motor insurance market continues to follow the opposite trend, with the top 5 priced premiums experiencing a further -2.5% decrease in May. The 12-month price movement for motor insurance has reduced significantly from its peak of 47% in Q4 2023 to 19%.
The most notable reductions in May were observed among drivers aged 26-30, who experienced a -2.7% decrease, and for cars priced between £10k to £20k, which also saw premium decreases of -2.7%. Regionally, the North East saw the largest reduction in motor insurance premiums across the UK, with a -3.3% decrease in May.
Frances Luery, Product Manager at Pearson Ham Group, stated:
“The period of inflation that drove up motor insurance prices was incredibly challenging for many people. We hope that insurers will continue to outline their expectations for future claims costs and how they are working to support policyholders.”
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