If a week is a long time in politics, a year in insurance can feel like an eternity. The UK general insurance market in 2024 was nothing short of eventful rising, falling, reshuffling, and recalibrating in ways that kept insurers, brokers, and analysts alike on their toes—from home insurance stabilisation to motor premium deflation, brand exits, and aggressive pricing strategies, the past year proved that nothing stays still for long in this industry.
With Consumer Intelligence keeping a close watch, here’s what happened in 2024—and why those in the know already have an eye on what’s next.
Home insurance: A year of stabilisation and strategy
2024 began with home insurance premiums still climbing, a hangover from 2023’s inflationary pressures. But by Q2, the market found firmer footing and competitive premiums began stabilising—at least for some.
- Premium trends: New business premiums for combined home insurance increased by 25% over the year, though this was an apparent slowdown compared to 2023. Hastings shook up the market in May with a bold price cut, rapidly increasing its competitive share and dethroning Policy Expert as the top-ranked home insurer.
- Market differentiation: Tiered products continued their march across the industry, with insurers stacking multiple brands to capture prime positions on price comparison websites (PCWs). Aviva, in particular, mastered this strategy.
- Exit of More Than: More Than bowed out of new business in July after its acquisition by Admiral, shifting customer movement patterns. While the exit didn’t send shockwaves through pricing, other brands—especially Direct Line—could gain a competitive share among switchers.
But the real story lay in the divergence between Buildings-only and Contents-only insurance:
- Buildings-Only: Competitive premiums rose sharply in Q1, tracking with the overall market
. - Contents-Only: Prices spiked in Q1 but then steadily declined, particularly in Q4—signalling greater stability.
New Market Entrants
- Lemonade debuted on Compare the Market (CTM) in July, bringing its data-driven, digital-first model to the UK. While its quotability remained limited, its competitive rankings were high when it did appear.
- Allianz launched a tiered online-only product in May, completing its rollout across PCWs by October—no administration fees for mid-term adjustments, a noteworthy twist.
- 1st Central expanded its home insurance footprint, rolling out across PCWs throughout the year, though notably without the multi-tier approach seen in its motor products.
Motor insurance: A market in reverse gear
After the sharp increases of 2023, motor insurance premiums fell throughout 2024 as inflationary pressures on insurers eased. But as always, the details tell a more interesting story.
- Premium declines: While market-wide deflation was the headline, the youngest drivers (17–24) did not benefit equally—facing ongoing availability and pricing challenges. Meanwhile, drivers over 50 saw the steepest price reductions.
- Rank 1 premiums: A sharp dip in December coincided with a rise in competitive telematics offerings, suggesting an industry pivot to attract price-sensitive customers.
Telematics: A tale of two strategies
- Several telematics brands exited the market in 2024, with Tesco Bank Box and InsureTheBox withdrawing and reducing options for younger drivers.
- Admiral’s LittleBox surged in competitiveness, proving that the black box isn’t dead—just evolving.
- Aviva Zero cemented itself as the most competitive non-telematics brand, emerging as the group’s lead new business brand by year-end.
The return of price cut offers
- General Insurance Pricing Practices (GIPP), introduced in 2022, were meant to curb price discrimination. But by Q4 2024, advertised price cut offers had returned to record levels, surpassing even pre-GIPP peaks.
- November saw 50% more price cut offers than the previous record, with tiered products playing a key role in fuelling competition.
Strategic moves and market reshuffling
The year wasn’t just about price movements—structural changes shaped the competitive landscape.
- Aviva’s £3.7bn takeover of Direct Line Group in December was the most significant shake-up, pending regulatory approval. The deal is poised to strengthen Aviva’s footprint, particularly in motor, where Direct Line’s customer base complements Aviva’s traditionally broader market reach.
- Brand exits and repositioning: More Than’s withdrawal reshaped home insurance, while several Markerstudy brands exited in December as part of a broader strategic reorganisation between home and motor insurance.
Meanwhile, PCWs' dominance in home and motor insurance remained unshaken. Insurers continued to focus on stacking brands at the top of search results, with Hastings leading the charge in home insurance and Aviva making similar moves in motor.
What Does It All Mean?
If 2023 was about rapid inflation, 2024 was about recalibration—stabilisation in home insurance, competitive realignments in motor, and strategic brand movements shaping the future.
More importantly, this year's events highlight a clear reality: understanding the market isn’t just about tracking prices—it’s about knowing what’s really driving the shifts beneath the surface.
For those in the know, one thing is sure: if you want to understand what’s happening next, you need the right insights.
And that’s where Consumer Intelligence comes in.
(We’ll leave the recommendations for our clients. But if you need to know how to navigate 2025, you know who to ask.)
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