Here’s the latest from Pearson Ham for you;
The latest General Insurance Price Index from Pearson Ham Group for February 2025 shows that motor insurance premiums continued to decline, but at a slower pace. Prices fell by 0.9%, marking the smallest monthly decrease in the past 12 months and bringing the annual movement rate to -19.3%.
The median top-five price for motor insurance settled at £470 in February, reflecting the sustained downward trend seen over the past year. However, the moderation in monthly declines suggests the market may be stabilising after a prolonged period of falling rates. The most significant declines were among older drivers, with premiums for over-70s dropping by 2.3% in February. Regionally, London recorded the largest decrease at -1.3%, while the North East saw the smallest reduction at -0.2%.
Vehicle value played a key role in pricing movements – cars worth under £1,000 experienced an average decrease of 1.2%, while those valued over £20,000 saw a more modest drop of just 0.5%.
Stephen Kennedy, Director at Pearson Ham Group, said:
“After a year of steep reductions, February’s smaller decrease is a signal that insurers are recalibrating their pricing strategies. The biggest reductions continue to be seen among older drivers, while regional and vehicle value differences highlight the complexity of pricing trends in today’s market. The question now is whether this slowdown marks the bottom of the cycle, or if external pressures – such as claims costs and regulatory factors – will drive further adjustments in the months ahead.”
Motor insurance pricing movements per region (by magnitude of monthly movement)
| Region | February Movement | 12-Month Movement |
|
London
|
-1.3%
|
-17.9%
|
|
East of England
|
-1.2%
|
-17.2%
|
|
Northern Ireland
|
-1.1%
|
-14.6%
|
|
East Midlands
|
-1.0%
|
-16.8%
|
|
North West
|
-1.0%
|
-19.0%
|
|
West Midlands
|
-1.0%
|
-17.6%
|
|
South West
|
-0.8%
|
-16.0%
|
|
Yorkshire & the Humber
|
-0.8%
|
-17.0%
|
|
South East
|
-0.7%
|
-16.5%
|
|
Scotland
|
-0.7%
|
-14.1%
|
|
Wales
|
-0.6%
|
-16.7%
|
|
North East
|
-0.2%
|
-18.5%
|
Home Insurance Premiums
The latest General Insurance Price Index also reveals that home insurance premiums continued their downward trend in February 2025, falling by 1.3%. This marks the third consecutive month of reductions. However, despite these recent declines, premiums remain 2% higher than they were at the same time last year, reflecting the longer-term impact of inflation on home insurance pricing.
In February, the median top-five price for home insurance fell to £219, continuing the downward trend seen in recent months. Price reductions were consistent across all UK regions, with the East Midlands experiencing the most significant decrease (-1.6%). Bungalows (-1.4%) and larger 4 bedroom properties (-1.4%) saw the largest declines, reinforcing patterns observed in late 2024.
Frances Luery, Product Manager at Pearson Ham Group, commented:
“The continued decline in home insurance premiums is a welcome relief for policyholders after a period of sustained inflation. However, it’s important to recognise that prices are still higher than they were a year ago. Many may see these reductions as a sign that the market is recalibrating, but it’s too early to draw that conclusion. The impact of recent extreme weather events has yet to be fully realised, and we may see further adjustments as claims data filters through in the coming months.”
Home insurance pricing movements per region (by magnitude of monthly movement)
| Region | February Movement | 12-Month Movement |
|
East Midlands
|
-1.6%
|
1%
|
|
East of England
|
-1.5%
|
2%
|
|
North West
|
-1.5%
|
1%
|
|
Scotland
|
-1.5%
|
3%
|
|
South East
|
-1.3%
|
3%
|
|
South West
|
-1.3%
|
4%
|
|
Wales
|
-1.3%
|
1%
|
|
West Midlands
|
-1.3%
|
0%
|
|
North East
|
-1.2%
|
0%
|
|
Yorkshire & the Humber
|
-1.2%
|
0%
|
|
Northern Ireland
|
-0.8%
|
10%
|
|
London
|
-0.7%
|
4%
|
Be the first to comment