’Home insurers have had to address many challenges,’ says director of insurance pricing
Home insurance premiums have reached an all-time high as prices shot up by more than 20% over the last 12 months.
That was according to Pearson Ham, which said the rise came as a result of insurers having to address economic challenges, such as inflationary pressures and increasing claims.
Figures released yesterday (8 August 2023) by the pricing specialist revealed that combined buildings and contents home insurance was now 26% higher than this time in 2022.
The analysis also found that that premiums rose above the average rate for larger properties.
For example, those with four or more bedrooms saw their home insurance premiums grow by 28% over the year.
Stephen Kennedy, director of insurance pricing at Pearson Ham, said: “Home insurers have had to address many challenges, not least inflationary pressures, increasing claims and the impact of regulation to pricing.
“All of which have resulted in home insurance premiums reaching an all-time high.”
Return to normalisation?
Despite this rise, Pearson Ham also found from a monthly analysis that there were signs the rate of increase for home insurance premiums had started to slow.
Its data revealed that in July 2023, prices increased by just 4%.
“The unprecedented rise in home insurance premiums over the past 12 months will be felt by consumers, but relief may be in sight,” Kennedy said.
“The lower monthly rate seen in July signals a change and perhaps a return to normalisation in pricing.
“If not that, it at least suggests a reduction in the level of premium increases expected in the coming months.”
His career began in 2019, when he joined a local north London newspaper after graduating from the University of Sheffield with a first-class honours degree in journalism.
Now working within the insurance sector, James has a particular focus on motor, M&A activity and financial reporting.View full Profile