The latest General Insurance Pricing Index from the Pearson Ham Group shows a decrease in both home and motor insurance premiums in October. The data reveals that motor insurance premiums continued their downward trend for the seventh consecutive month, while home insurance saw a slight decrease, though a substantial year-on-year increase persists.
In October, home insurance premiums decreased by 0.7%, resulting in a median top-five premium price of £224. This price, however, represents a 19% increase over the past year as insurers respond to ongoing market challenges and inflationary pressures.
Regional disparities were notable, with premiums rising by 0.2% in London and 0.5% in Northern Ireland. Meanwhile, all other UK regions saw declines, led by Wales with a reduction of 1.8%. Detached homes experienced the largest reduction among property types, with a 0.9% decline, although smaller properties, including one-bedroom homes, saw a slight increase of 0.6%.
|
Region |
October Movement |
12-Month Movement |
|---|---|---|
|
Wales |
-1.8% |
18% |
|
East Midlands |
-1.2% |
17% |
|
East of England |
-0.9% |
20% |
|
Yorkshire & the Humber |
-0.9% |
17% |
|
West Midlands |
-0.8% |
17% |
|
South West |
-0.7% |
21% |
|
North East |
-0.7% |
18% |
|
North West |
-0.7% |
18% |
|
Scotland |
-0.6% |
22% |
|
South East |
-0.5% |
19% |
|
London |
0.2% |
23% |
|
Northern Ireland |
0.5% |
31% |
Source: Pearson Ham
Motor insurance premiums dropped by 1.2% in October, bringing the median top-five premium to £500. This decline contributed to a 12.2% reduction year-to-date, with regional variations influencing the pace of change. The North East saw the most significant year-on-year decrease at 14.1%, while Scotland and Northern Ireland reported the smallest reductions at 8.6% and 8.4%, respectively.
The report noted young drivers benefitted the most from the reductions, with premiums for those under 30 decreasing by 1.8%, compared to a 0.8% reduction for drivers over 50. The value of vehicles appeared to have minimal impact, as all vehicle values experienced reductions between 1.1% and 1.3% for the month.
|
Region |
October Movement |
12-Month Movement |
|---|---|---|
|
North East |
-1.6% |
-14.1% |
|
East Midlands |
-1.6% |
-11.8% |
|
East of England |
-1.5% |
-11.8% |
|
West Midlands |
-1.5% |
-12.6% |
|
North West |
-1.4% |
-13.2% |
|
London |
-1.2% |
-12.1% |
|
South East |
-1.2% |
-12.2% |
|
South West |
-1.2% |
-11.9% |
|
Northern Ireland |
-1.2% |
-8.4% |
|
Wales |
-1.1% |
-13.0% |
|
Yorkshire & the Humber |
-1.0% |
-13.3% |
|
Scotland |
-0.2% |
-8.6% |
Source: Pearson Ham
“October marks the first month this year in which we’ve seen both motor and home insurance prices decline,” noted Stephen Kennedy, director at Pearson Ham Group. “We expect motor insurance premiums to continue easing throughout the remainder of Q4, but it’s likely home insurance pricing could resurge and see increases again before the year’s end.”
Pearson Ham Group’s pricing data was compiled through a monthly mystery shopping exercise involving a variety of real-life consumer profiles to provide a realistic overview of the insurance market.
Do you have something to say about the recent analysis? Leave a comment below.
