If per week is a very long time in politics, a 12 months in insurance coverage can really feel like an eternity. The UK common insurance coverage market in 2024 was nothing wanting eventful rising, falling, reshuffling, and recalibrating in ways in which saved insurers, brokers, and analysts alike on their toes—from dwelling insurance coverage stabilisation to motor premium deflation, model exits, and aggressive pricing methods, the previous 12 months proved that nothing stays nonetheless for lengthy on this business.
With Client Intelligence protecting an in depth watch, right here’s what occurred in 2024—and why these within the know have already got an eye fixed on what’s subsequent.
House insurance coverage: A 12 months of stabilisation and technique
2024 started with dwelling insurance coverage premiums nonetheless climbing, a hangover from 2023’s inflationary pressures. However by Q2, the market discovered firmer footing and aggressive premiums started stabilising—no less than for some.
- Premium traits: New enterprise premiums for mixed dwelling insurance coverage elevated by 25% over the 12 months, although this was an obvious slowdown in comparison with 2023. Hastings shook up the market in Could with a daring worth reduce, quickly rising its aggressive share and dethroning Coverage Skilled because the top-ranked dwelling insurer.
- Market differentiation: Tiered merchandise continued their march throughout the business, with insurers stacking a number of manufacturers to seize prime positions on worth comparability web sites (PCWs). Aviva, specifically, mastered this technique.
- Exit of Extra Than: Extra Than bowed out of latest enterprise in July after its acquisition by Admiral, shifting buyer motion patterns. Whereas the exit didn’t ship shockwaves by pricing, different manufacturers—particularly Direct Line—may achieve a aggressive share amongst switchers.
However the true story lay within the divergence between Buildings-only and Contents-only insurance coverage:
- Buildings-Solely: Aggressive premiums rose sharply in Q1, monitoring with the general market.
- Contents-Solely: Costs spiked in Q1 however then steadily declined, significantly in This autumn—signalling larger stability.
New Market Entrants
- Lemonade debuted on Evaluate the Market (CTM) in July, bringing its data-driven, digital-first mannequin to the UK. Whereas its quotability remained restricted, its aggressive rankings had been excessive when it did seem.
- Allianz launched a tiered online-only product in Could, finishing its rollout throughout PCWs by October—no administration charges for mid-term changes, a noteworthy twist.
- 1st Central expanded its dwelling insurance coverage footprint, rolling out throughout PCWs all year long, although notably with out the multi-tier method seen in its motor merchandise.
Motor insurance coverage: A market in reverse gear
After the sharp will increase of 2023, motor insurance coverage premiums fell all through 2024 as inflationary pressures on insurers eased. However as at all times, the small print inform a extra attention-grabbing story.
- Premium declines: Whereas market-wide deflation was the headline, the youngest drivers (17–24) didn’t profit equally—going through ongoing availability and pricing challenges. In the meantime, drivers over 50 noticed the steepest worth reductions.
- Rank 1 premiums: A pointy dip in December coincided with an increase in aggressive telematics choices, suggesting an business pivot to draw price-sensitive prospects.
Telematics: A story of two methods
- A number of telematics manufacturers exited the market in 2024, with Tesco Financial institution Field and InsureTheBox withdrawing and lowering choices for youthful drivers.
- Admiral’s LittleBox surged in competitiveness, proving that the black field isn’t useless—simply evolving.
- Aviva Zero cemented itself because the best non-telematics model, rising because the group’s lead new enterprise model by year-end.
The return of worth reduce presents
- Normal Insurance coverage Pricing Practices (GIPP), launched in 2022, had been meant to curb worth discrimination. However by This autumn 2024, marketed worth reduce presents had returned to report ranges, surpassing even pre-GIPP peaks.
- November noticed 50% extra worth reduce presents than the earlier report, with tiered merchandise enjoying a key position in fuelling competitors.
Strategic strikes and market reshuffling
The 12 months wasn’t nearly worth actions—structural modifications formed the aggressive panorama.
- Aviva’s £3.7bn takeover of Direct Line Group in December was essentially the most vital shake-up, pending regulatory approval. The deal is poised to strengthen Aviva’s footprint, significantly in motor, the place Direct Line’s buyer base enhances Aviva’s historically broader market attain.
- Model exits and repositioning: Extra Than’s withdrawal reshaped dwelling insurance coverage, whereas a number of Markerstudy manufacturers exited in December as a part of a broader strategic reorganisation between dwelling and motor insurance coverage.
In the meantime, PCWs’ dominance in dwelling and motor insurance coverage remained unshaken. Insurers continued to concentrate on stacking manufacturers on the prime of search outcomes, with Hastings main the cost in dwelling insurance coverage and Aviva making related strikes in motor.
What Does It All Imply?
If 2023 was about fast inflation, 2024 was about recalibration—stabilisation in dwelling insurance coverage, aggressive realignments in motor, and strategic model actions shaping the long run.
Extra importantly, this 12 months’s occasions spotlight a transparent actuality: understanding the market isn’t nearly monitoring costs—it’s about understanding what’s actually driving the shifts beneath the floor.
For these within the know, one factor is bound: if you wish to perceive what’s occurring subsequent, you want the best insights.
And that’s the place Client Intelligence is available in.
(We’ll depart the suggestions for our shoppers. But when it’s worthwhile to know tips on how to navigate 2025, who to ask.)
