Evolving Insurance Market Dynamics

Motor and home premiums fall again as UK insurance prices trend lower – Pearson Ham 

13 Aug 2025

Pearson Ham Group’s latest General Insurance Price Index shows continued declines in UK motor and home insurance premiums in July 2025. Motor premiums fell 0.9% in the month and are now 16.3% lower year-on-year, with the median top-five price at £438. The pace of decline is slowing, suggesting the motor market may be nearing stability, though regional and vehicle value variations remain significant. Home insurance saw its sharpest monthly drop in a year, down 2.0% in July and nearly 10% lower than a year earlier, though still over 23% above mid-2023 levels. Pearson Ham expects both markets to move towards greater segmentation as insurers balance competition with claims and cost pressures.

sector training, road safety improvements, and no rise in Insurance Premium Tax.

Staged crashes and false claims hit Australian insurers hard

11 Aug 2025

Australian insurers are facing heavy losses from staged crashes and false claims, with NSW police charging a 66-year-old Sydney man linked to 16 planned collisions involving 45 vehicles over three years, costing insurers $390,480. The case highlights rising fraud in the sector, which the Insurance Council of Australia says cost $560 million last year. Comprehensive motor premiums have climbed 42% since 2019 to over $1,050 annually, driven by higher repair costs, supply chain delays, and labour shortages. A survey by iSelect found 6.8% of drivers admit to misrepresenting policy details—such as parking location or mileage—to lower premiums, a practice most common among younger drivers. Insurers warn that providing false information can lead to cancelled policies or denied claims.

Acorn Group expects triple-digit growth in 2025 for short-term motor insurance policies 

8 Aug 2025

Acorn Group reports strong growth in short-term motor insurance, with sales of such policies up 200% in 2024 and around 10 million sold annually in the UK. The company’s short-term cover brand, Briefly, launched in 2024, is now targeting triple-digit growth for 2025 amid rising living costs, changing driving habits, and increased vehicle sharing. Searches for temporary car insurance have risen 236% since 2021, particularly among younger drivers seeking affordable, flexible options. Acorn says these trends signal a fundamental shift in how UK drivers insure themselves, with demand for practical, usage-based cover continuing to accelerate.

FOS complaints drop, but insurance still in the spotlight

8 Aug 2025

In Q1 2025/26, complaints to the UK Financial Ombudsman Service (FOS) dropped to 68,000 from 74,600 a year earlier, largely due to new case fees that reduced speculative submissions from claims management companies and legal firms. Despite this, motor and property insurers face sustained regulatory risk, with high upheld rates — motor, buildings, and pet insurance each at 41%, above the 36% average. Motor insurance remains the most complained-about general insurance product, accounting for nearly a third of cases in late 2024. The FOS is pursuing wider reforms, including higher evidentiary thresholds and measures to encourage earlier dispute resolution, while the FCA prepares an industry-wide redress scheme following a Supreme Court ruling on commission mis-selling. Insurers are urged to address systemic weaknesses to avoid increased regulatory scrutiny.