The home insurance sector in the UK witnessed a notable surge in average quoted prices, marking a 40.6% increase — the most significant yearly escalation recorded by Consumer Intelligence since its inception in 2014.
This upward trend surpassed prior records, with hikes of 36.1% and 25.7% in the preceding two quarters, positioning the most common quotes between £150 and £199, as indicated by 29% by the insight provider’s observations.
On the flip side, recent data suggest a potential moderation in price growth, with the last quarter showing a 7.6% rise in quotes, a slight decrease from the 8.5% and 9.9% increases seen in the earlier quarters. This deceleration is partly attributed to the introduction of competitively priced new policies.
However, Consumer Intelligence also highlighted a concern for policyholders who have recently filed claims, particularly those related to storm damage, who might face further premium increments.
In detail, over the past year, customers dealing with water damage reported a 49.1% surge in quoted prices. Similarly, increases for building claims stood at 47.6%, and 47.1% for other damage-related claims, contrasting with a 39.9% rise for individuals without claims and 39.2% for theft claims.
Since February 2014, when Consumer Intelligence began its data collection, quoted premiums have surged by 53%.
A regional breakdown reveals that all areas experienced around a 40% increase in quoted premiums over the past year, with Wales seeing the highest at 43.2% and the Eastern region the lowest at 38.9%. The last three months witnessed varied growth across regions, from 6.1% in the South West to 10.0% in London.
The report also sheds light on the differences in premium increases based on the age group of policyholders, noting a slightly faster rate for under-50s at 41.2%, compared to 39.7% for over-50s. Over the last quarter, both age groups saw similar increases, with 7.8% for under-50s and 7.4% for over-50s.
Moreover, homes of all ages experienced approximately a 40% rise in quoted premiums over the past year. Properties constructed between 1970 and 1985 faced the highest increase at 43.7%, while those built between 1940 and 1955 saw the lowest at 38.3%.
Over the past three years, quoted premium increments ranged from 8.4% for Victorian-era homes to 6.7% for mid-20th-century constructions.
Matthew McMaster, senior insight analyst at Consumer Intelligence, noted how new business quoted premiums for buildings and contents insurance have increased over the past year.
“This is the largest yearly increase we have seen since our tracking began in 2014,” McMaster said. “One driver in the slowing of inflation is the launch of a number of products which have become increasingly more competitive.”
Elsewhere, Consumer Intelligence has also recently announced the winners of its awards for motor and home insurance companies for 2024.
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