Consumer Intelligence Home Insurance Price Trends

The average cost of a new home insurance policy has decreased by 5.6% in the last three months. This drop in prices is attributed to smaller new business volumes, which have increased competition in the market.

Cost-of-Living Relief

Households are experiencing some relief in their cost of living, with home insurance premiums falling by 5.6% in the three months leading up to July 2022. Initially, new rules implemented at the beginning of the year caused premiums to soar in January, but they quickly stabilized and began to decrease.

Market Insights

Data from the Consumer Intelligence home insurance price index shows that the average premium for home insurance is currently £145. The pricing reforms by the FCA led to an increase in new business premiums at the start of the year, but prices have since become more reasonable at renewal, reducing the incentive for customers to switch insurers.

Competition in the Market

The reduction in new business volumes has spurred increased competition in the market, especially from newer brands without large back books. This competition has helped reverse the steep rise in premiums seen earlier in the year.

Long-Term View

Since Consumer Intelligence began collecting data in February 2014, premiums have decreased by 0.7% overall. The competitive nature of the home insurance marketplace has contributed to maintaining pricing levels over the past eight years.

Regional Variances

London continues to have the highest average home insurance premiums, with an annual cost of £203. The North East remains the cheapest region for home insurance, with an average premium of £128.

Age and Property Type Factors

Under-50s households pay slightly more for home insurance compared to over-50s households. Older homes, particularly Victorian-era properties, are more expensive to insure than newer builds. Homes built between 1940 and 1955 are an exception, with lower premiums compared to other age brackets.

Data Insights

The Consumer Intelligence Home Insurance Index provides a comprehensive overview of price movements in the market, helping insurers optimize their pricing strategies. For more detailed information, download the Home Insurance Price Index for in-depth analysis.