’We expect levels to rise further for the remainder of the year and into 2024,’ says financial services markets leader

Home insurance premiums are set to rise after the market experienced its ”worst performing year on record” in 2022, new figures published by EY today (30 October 2023) have revealed.

The law firm’s data showed UK home insurers suffered a loss-making net combined ratio (NCR) of 122% last year, with further losses forecast across 2023 and 2024 due to market headwinds.

As a result, consumers are expected to see premiums rise over the next two years.

EY predicted that prices will increase by 17% in 2023 – adding £43 to an average policy – with a further 16% increase forecast in 2024.

”Consumer premiums have risen over the course of 2023 and we expect levels to rise further for the remainder of the year and into 2024 as insurers look to balance inflationary and cost pressures,” Rodney Bonnard, UK financial services markets leader at EY, said.


The data showed that UK home insurers’ 2022 balance sheets were heavily impacted by major weather events, sustained high inflation, supply chain pressures and an increased claims frequency.

While premiums are increasing, EY predicted that UK home insurers will continue in loss-making territory, with an NCR of 114% forecast for 2023 and 104% in 2024.

Bonnard said UK home insurers needed to ”review their operating models to ensure they are best positioned to achieve profitability in a competitive market over the coming years”.

”To do this, firms will need to navigate sustained inflation and uncertainty around the future cost of weather claims, alongside other critical growth areas, including ESG and digital transformation,” he added.