The word from Pearson Ham on Home and Motor Premiums;

The latest General Insurance Pricing Index from Pearson Ham Group provides fresh insights into home and motor insurance pricing for November 2024. The data highlights contrasting trends, with home insurance premiums showing a modest increase and motor insurance prices continuing to decline, reflecting varied dynamics across the two markets.

Home insurance premiums

Home insurance premiums rose by 0.4% in November, pushing the year-on-year increase to 17%. Despite some fluctuations, the market has remained broadly flat over the past six months with an average monthly movement of just 0.16%. The median average top-five price for home insurance now stands at £227, up from £224 in October.

Small premium increases were observed across all regions, with Wales recording the largest monthly rise at 0.8%. Northern Ireland leads the year-on-year changes, with premiums climbing by a substantial 25% since November 2023.

Pricing shifts also varied by property type. Homes with four bedrooms saw minimal change in November, while smaller properties with one or fewer bedrooms experienced a 0.7% increase, reflecting ongoing adjustments to pricing strategies in the market.

Home insurance pricing movements per region (by magnitude of monthly movement)

Motor insurance premiums

Motor insurance prices continued their downward trajectory in November, with pricing dropping by -2.2%. This marks the eighth consecutive month of reductions, bringing the year-on-year decrease to nearly -15%.

Regional differences were pronounced, with Scotland experiencing the smallest year-on-year decrease at -10.8%, while sharper reductions were seen across regions in England and Wales.

Vehicle value played a notable role in pricing trends. High-value vehicles and those valued under £1,000 saw the largest monthly decreases at -2.8% and -2.4%, respectively. Over the past 12 months, premiums for vehicles valued under £1,000 have dropped significantly by         -15.3%, offering savings to owners of lower-value vehicles.

Age demographics also showed variation, with drivers over 70 experiencing the smallest monthly decrease at -1.7%, compared to steeper declines for younger age groups.

Motor insurance pricing movements per region (by magnitude of monthly movement)

Stephen Kennedy, Director at Pearson Ham Group, commented:

“November’s data highlights the contrasting pressures shaping the home and motor insurance markets. Home insurance premiums have plateaued as providers adjust to inflationary factors and regional dynamics, whereas motor insurance prices continue to decline under competitive market conditions.

“While home insurance premiums have flattened, the fall in motor premiums – particularly for lower-value vehicles – reflects insurers’ efforts to attract and retain customers in an increasingly price-sensitive environment. These movements underline the need for insurers to remain agile and responsive as market conditions evolve.”

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