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Here is the latest market snapshot from Pearson Ham;<\/p>\n
The latest General Insurance Price Index from Pearson Ham Group shows that premiums for both motor and home insurance declined at a faster pace in May 2025, suggesting a further softening across the personal lines market.<\/p>\n
Motor premiums<\/p>\n
Motor insurance prices dropped by -1.7% in May, an acceleration compared to April\u2019s more modest -0.8% fall. This sharper movement signals that the softening of the market may be deeper and more sustained than previously anticipated. Over the past 12 months, average quoted premiums have fallen by -17%.<\/p>\n
The median top-five quoted premium now stands at \u00a3455, down from \u00a3467 in April.<\/p>\n
Stephen Kennedy, Director at Pearson Ham Group, said:<\/strong><\/p>\n \u201cWhile last month\u2019s data hinted at a possible stabilisation in motor pricing, the renewed acceleration in May points to a continued softening of the market. Insurers appear to be adjusting rapidly to shifting claims dynamics and competitive pressure, which is now manifesting as more pronounced reductions across a broader range of customer segments. The coming months will reveal how much this cycle continues.\u201d<\/p>\n Home insurance premiums\u00a0<\/p>\n Home insurance premiums saw their most substantial monthly decline of the past year in May, falling by -1.9% and bringing the annual drop to -6%. The data suggests that competitive pricing and shifting risk perceptions are exerting renewed downward pressure, further softening the market.<\/p>\n Frances Luery, Product Manager at Pearson Ham Group, commented:<\/strong><\/p>\n \u201cThe pace of change in May underlines that the home insurance market is now experiencing significant softening. This is the largest single-month fall we\u2019ve recorded in recent months and points to a rapidly evolving pricing environment. Insurers are clearly re-evaluating their strategies, and as pricing becomes more granular, we expect to see even greater segmentation and volatility emerge.\u201d<\/p>\n Market implications<\/p>\n These sharper-than-expected declines reinforce the view that both motor and home insurance markets are undergoing a period of notable and possibly prolonged softening. As insurers contend with fluctuating claims costs, inflationary pressures, and heightened competition, pricing strategies are likely to remain fluid and increasingly data-driven.<\/p>\n Like this:<\/p>\n Like Loading…<\/p>\n