General Insurance Market at Tipping Point as Switching Hits Historic Lows

The percentage of motor insurance customers switching has dropped to 33% from peaks of nearly 50% last year while home insurance switching has fallen to 36%, the report The End of Churn reveals. Switching rates for over-65s are as low as 27% for home insurance.

Numbers shopping around have fallen to 72% for motor from highs of 85% and to 70% for home insurance on average.

Poor claims experiences have become a more important reason for switching – 13% of home customers moving cite bad claims experiences and 8% of motor insurance say the same.

They are also important for staying with their existing insurer with 14% of motor and 16% of home customers highlighting claims experience for their decision to not move.

Key factors driving the change in the market include the stabilisation of renewal premiums and the increased importance of service quality with customer inertia creating opportunities and challenges for insurers, the report says.

Consumer Intelligence highlights how insurers need to compete on value rather than price with service excellence, technology and cross-product and partnership strategies crucial to building loyalty. 

Ian Hughes, CEO at Consumer Intelligence, said: “This is about the end of price-led competition and how insurers can create sustainable growth through customer value, experience, and innovation. 

“For 2026 insurers must pivot from competing on price to creating value through innovation, service excellence and ecosystem development. Winners will need to get smarter on how they acquire customers and keep existing customers.” 

The report, based on a comprehensive analysis of UK insurance customers over more than a decade shows price is still important – 47% of motor customers said their new policy was cheaper than renewal while 35% of home customers price was the primary reason to move. 

It is available at https://www.consumerintelligence.com/end-of-churn-competing-on-value-in-the-new-insurance-landscape