• Home insurance premiums have risen 2.7% in the last six months alone
Homeowners across the country have seen a 2.7% rise in the average cost for home insurance in the last six months alone, almost double the UK inflation rate, analysis1 from data analytics expert Consumer Intelligence shows.
Across the market, average overall premiums sit at £139. Average premiums for the over-50s rose 3% in the last 12 months and sit at £130, while increases for the under-50s were limited to 2.6% (£146).
London continues to skew the UK’s average home insurance premium upwards and remains the most expensive place to buy home insurance. The average policy now costs £184. And because of the high insurance costs associated with living in the UK capital, the North West (£141) is the only other region to sit above the national average of £139. The North East (£123) and Wales (£124) rank as the UK’s cheapest regions.
Properties built towards the end of the interwar years saw the biggest increases to their premiums over the past 12 months.
These Edwardian dwellings, erected between 1925-1940, attracted premium rises of 5% over the period – pushing annual insurance costs up to £150 for these homes, the second highest of any property age grouping.
Victorian-era properties built between 1850-1895 continue to carry the highest average annual premiums at £160, while the cheapest properties to insure are those constructed post-1970 – between £131-£135.
Properties built straddling the First World War – between 1910-1925 – were the only property age grouping to see home insurance premiums fall (-0.3%) across the same 12-month period.
Since late summer, Britain has been buffeted by a barrage of storms. And with large parts of the UK remaining flooded, insurers are braced for more sizeable losses.
Another reason prices could rise further in the coming months – for new business at least – is a potential ban on the widespread practice of dual pricing for new business and renewals. An interim report by the Financial Conduct Authority in October said the current model ‘is not working well’ as it discriminates against loyal customers.
John Blevins, pricing expert at Consumer Intelligence, said “There’s evidence insurers are dealing with dual pricing already due to the negative publicity and inevitable requirements coming in the near future.
“One of the impacts is that new business pricing – the key content of our price index – is likely to increase to narrow the difference between new business and renewal costings.”
|Region||Change in Year to January||Average Premium (Five Cheapest)|
|Yorkshire and The Humber||1.8%||£138|
Download our Home Insurance Price Index to gain insight into market movements, benchmark the major van insurance brands and help you understand the data behind the results.
Notes to Editors
¹The cheapest premiums were calculated by comparing the prices offered for 2,100 people by all the major Price Comparison Sites and key direct insurers. The top 5 prices for each person were compared to the previous month’s top 5, then these variations averaged to produce the index.
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Consumer Intelligence (CI) is a data analytics company that helps businesses execute great customer strategies. For 15 years the company has been benchmarking the insurance market and retail banks in the UK and beyond. The unique combination of benchmark data, consumer research and extensive experience has helped some of the world’s major brands focus on delivering better services to customers and improving their own business performance as a result. For more information, visit the website www.consumerintelligence.com
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