Aggregator price battles see home insurance premiums fall significantly

Home insurance premiums have fallen 8.2% in the last 12 months, according to research experts at Consumer Intelligence.

The slump comes amid pricing battles on aggregators as insurers and brokers fight for the best prices to attract customers.

Another reason for the fall is people staying at home for longer periods.

“More people have been staying at home for longer periods – with burglars deterred from breaking into houses and water damage claims down as people are on hand to respond quickly to leaks,” said Harriet Devonald, pricing expert at Consumer Intelligence.

“What we’re also seeing in the home PCW (price comparison website) market is something of a pricing battle, triggered by a few providers – with PCW-led distribution strategies – that have been really trying to grow their home book.

“And this has triggered reactions from some larger players trying to keep up and protect their ground.”

Homeowners under 50 benefit most with average premiums down 8.9%, compared to older homeowners only down 4.5%. 

Consumer Intelligence said it was expecting new business pricing change next year. 

Ms Devonald added: “We expect new business premiums to go up as the market levels out new business and renewal pricing – however, by how much, we have yet to see.”