Context
According to the ABI’s latest Household Premium Tracker figures the average price paid for home insurance – both buildings and contents cover – has fallen over the last year.
Key points to note
The latest Tracker shows that in the second quarter of 2022:
- The average price paid for buildings insurance was £228, a 10% drop over the year since quarter 2 2021.
- The average price paid for contents insurance, at £116, also fell by 10% since the same quarter 2021 and remains at its equal lowest level since ABI started collecting the data back in 2012.
- For combined buildings and content policies, the average premium was £299, down 7%.
While it is still too early to fully assess the impact of the FCA’s changes to the rules on the pricing of home and motor insurance introduced on 1st January 2022, indications show a fall in average renewal premiums paid by existing customers.
The average renewal premium for contents insurance (£124) is down £14 since the changes came in. For buildings cover the average premium (£247) fell by £27.
For new policies the average premium for contents insurance has risen by £2 since the beginning of the year; the average price for buildings cover is up £9 so far this year.
Next actions
None – for information and awareness