Top 10 motor insurers see net loss of 20,000 existing customers to rest of market

The top 10 UK motor insurers saw a net loss of 20,000 existing policies in the latter months of 2024, new data has revealed.

According to the inaugural Insurance Demand Meter report from data and analytics firm LexisNexis Risk Solutions, the top 10 firms won 400,000 existing customers, but lost 420,000 potential renewals to the rest of the market.

Tom Lawrie-Fussey, senior director of insurance product management for UK&I at LexisNexis Risk Solutions, said that the ”top ten losing marginally more business than they won in the final quarter of 2024” showed that ”the rest of the market appears to be catching up”.

This comes as more consumers shop around, with figures showing that there were 30,000 customers per day searching for a new deal in the second half of 2024, up 4% from the same period in 2023.

Cancellations high

The report also pointed towards cancellations as a “significant threat for the market”, with a 13% cancellation rate seen at the top 10 insurers and an 18% rate for the rest of the market.

Lawrie-Fussey said: “We see motor insurance premiums now levelling off, with some insurance providers suggesting the price surges seen in the last few years have ended.

“Cost-of-living pressures remain and therefore it is likely that shopping and switching activity in motor insurance will stay elevated in 2025.

“While the big insurance providers appear to be more equipped to select and retain a more favourable profile of risk, the rest of the market appears to be catching up, with the top ten losing marginally more business than they won in the final quarter of 2024.

“As costs for insurance providers ease, niche providers should remain in a strong position to compete effectively into 2025.”