Some data on premium rate averages from Pearson Ham for you;
The latest General Insurance Price Index from Pearson Ham Group for January 2025 highlights a continued decline in motor insurance premiums, with prices falling by -2.4% in the first month of the year. This marks the largest monthly decrease since May 2024 and brings the 12-month movement rate to -18.2%.
The median top-five price for motor insurance fell to £464 in January, reflecting the sustained downward trend in premiums.
The most significant premium reductions were observed among the youngest and oldest drivers. Motor insurance rates for under-26s and over-70s both declined by -2.9% in January, reinforcing a trend of sharper reductions at both ends of the age spectrum.
Regionally, drivers in the North West and London saw the largest premium decreases (-2.9%), while Northern Ireland recorded a more modest decline of -1.9%.
Motor insurance pricing movements per region (by magnitude of monthly movement)
| Region | January Movement | 12-Month Movement |
|
London
|
-2.9%
|
-16.2%
|
|
North West
|
-2.9%
|
-17.7%
|
|
North East
|
-2.6%
|
-18.1%
|
|
East Midlands
|
-2.5%
|
-15.5%
|
|
West Midlands
|
-2.5%
|
-16.3%
|
|
Scotland
|
-2.4%
|
-13.2%
|
|
East of England
|
-2.3%
|
-15.9%
|
|
Yorkshire & the Humber
|
-2.3%
|
-16.2%
|
|
South East
|
-2.1%
|
-15.4%
|
|
South West
|
-2.1%
|
-14.4%
|
|
Wales
|
-2.0%
|
-15.8%
|
|
Northern Ireland
|
-1.9%
|
-12.9%
|
Stephen Kennedy, Director at Pearson Ham Group, said:
“The market has now seen 10 consecutive months of falling motor insurance premiums, with January marking the steepest drop since last May. The -18.2% annual decrease is particularly striking, especially given the steady increases we saw throughout much of 2023.
“The sharpest declines among younger and older drivers suggest insurers are recalibrating pricing, potentially in response to claims trends and competitive pressures, and could indicate some back versus front book strategies. Meanwhile, regional variations highlight how local market dynamics continue to influence pricing.”
Home Insurance Premiums
The General Insurance Price Index also highlights a continued decline in home insurance premiums, with prices falling by -0.9% in January 2025. This marks the second consecutive month of reductions, suggesting a potential softening of the home insurance market as the year progresses.
Despite these recent decreases, premiums remain 7% higher than they were at the same time last year, and over 50% higher than two years ago, underscoring the longer-term impact of inflation on home insurance pricing.
In January, the median top-five price for home insurance fell to £221, continuing the downward trend seen in recent months. Price reductions were consistent across all UK regions, with Northern Ireland and Wales experiencing the most significant decreases (-1.1%). Mid-sized terraced and two bedroom properties saw the largest declines (-1.0%), reinforcing patterns observed in late 2024.
Home insurance pricing movements per region (by magnitude of monthly movement)
| Region | January Movement | 12-Month Movement |
|
Northern Ireland
|
-1.1%
|
15%
|
|
Wales
|
-1.1%
|
5%
|
|
East of England
|
-1.0%
|
8%
|
|
North East
|
-1.0%
|
6%
|
|
Scotland
|
-0.9%
|
9%
|
|
Yorkshire & the Humber
|
-0.9%
|
5%
|
|
East Midlands
|
-0.8%
|
6%
|
|
London
|
-0.8%
|
8%
|
|
South West
|
-0.8%
|
9%
|
|
South East
|
-0.7%
|
8%
|
|
North West
|
-0.7%
|
6%
|
|
West Midlands
|
-0.7%
|
5%
|
Frances Luery, Product Manager at Pearson Ham Group, commented:
“The consecutive declines in home insurance premiums suggest that pricing pressures may be easing after a period of sustained inflation. However, it’s important to put this into context – while prices are softening in early 2025, they remain significantly higher than a year ago.
“What we’re seeing is a market adjusting to changing risk factors and competitive pressures. The key question now is whether this downward trend continues, or if external factors – such as claims inflation and the recent extreme weather events, particularly Storms Darragh and Éowyn – prompt a shift in direction later in the year.”
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