The latest data from Pearson Ham for you;
Insurance premiums for both motor and home insurance continued their downward trajectory in Q3 2025, according to the latest data from Pearson Ham Group’s General Insurance Price Index. However, while competitive pricing remains intense, the rate of decline points to an increasingly stabilised and segmented market.
Motor Insurance
The average of the top-5 quoted motor premiums fell by -2.9% in Q3 2025, extending the downward trend that began in April 2024. This follows a quarterly decline of -4% in Q2, signalling that while insurers remain competitive, the pace of reduction is easing.
Monthly movements were relatively consistent across the quarter, with reductions of -1% in July, -0.9% in August and -1.1% in September.
Over the past six months, top-5 prices have fallen by -6.8%, while on a year-on-year basis, premiums are now around -15% lower than in September 2024. Despite this sustained decline, prices remain 9% higher than at the start of 2020, illustrating how far the market has yet to unwind from the pandemic-era and post-GIPP inflation.
Stephen Kennedy, Director at Pearson Ham Group, commented:
“Motor insurance pricing continues to edge down, but the rhythm of reductions has steadied. We’re now in a more controlled phase of competition – one where insurers are refining their positioning rather than driving headline price cuts.
“This suggests the market is nearing a natural floor, and from here we expect to see greater divergence in pricing by customer type, risk profile and distribution channel as insurers seek sustainable market share rather than short-term volume.”
Home Insurance
Combined buildings and contents premiums also moved lower in Q3, with average premiums down -4.9% over the quarter, a slightly sharper fall than the -3.8% recorded in Q2. Monthly movements were broadly steady, with -2% in July, -2% in August, and -1.1% in September, marking the fifth consecutive quarter of decline.
Over the past six months, premiums have fallen by -8.6%, and by -13% compared with September 2024. Despite this, prices remain 6.4% higher than two years ago, reflecting the enduring impact of the inflation surge that shaped pricing through 2023 and early 2024.
Frances Luery, Product Manager at Pearson Ham Group, commented:
“We’re seeing a pattern of sustained competition across the home insurance market, with premiums now materially lower than last year. However, the data still reflects a market that’s recalibrating after a prolonged period of claims and cost inflation. The key question now is how much further prices can realistically fall before we see renewed upward pressure from claims trends and weather-related losses heading into winter.”
A more segmented market emerging
The Pearson Ham analysis suggests that both home and motor pricing are now showing signs of stabilisation, with overall competition remaining strong but increasingly nuanced.
The firm anticipates that pricing strategies will become more differentiated in the months ahead, with variability widening across customer segments and regional markets as insurers balance competitive pressures with profitability.
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