New figures published by EY reveal that home insurance premiums in the UK are set to rise following the market's worst performing year on record. EY's data shows that UK home insurers experienced a loss-making net combined ratio (NCR) of 122% last year, with further losses expected in 2023 and 2024 due to market headwinds.

As a result, consumers can anticipate an increase in premiums over the next two years. EY predicts a 17% increase in prices for 2023, adding £43 to an average policy, with a further 16% increase forecasted for 2024.

Rodney Bonnard, UK financial services markets leader at EY, stated, "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."

EY's data highlights that major weather events, sustained high inflation, supply chain pressures, and increased claims frequency heavily impacted UK home insurers' balance sheets in 2022. The equivalent of £8.6 million was paid every day to help households cope with the unexpected, and there was an increase in claims higher than the rise in the average home insurance premium. The average claim also saw a significant increase of 24% to £4,300, while subsidence payouts jumped 21% due to the legacy of last summer's heatwave.

What Can You Do?

Our own home insurance is proving to be extremely popular with customers aiming to save money on their increasing renewal quotes. Our excellent policy is available from as little as £101 per year, with direct debit payments allowing you to split the costs down into manageable monthly payments. If you've not made a claim in the last 3 years you could also be eligible for unto 30% no claims discount and there's no hidden admin fees to worry about. Get a quote in seconds using our Home insurance quick quote generator to give us a call on 01476 513781.