Dwelling Insurance Premiums Fall Due To Pandemic And Comparability Websites – The Unbiased
Home insurance premiums have plummeted last year after being pushed down by the pandemic and the ongoing "price war" on comparison websites according to new research.
Rewards have fallen to an average of £ 138, down 8.2% over the past 12 months, experts at Consumer Intelligence said.
However, the pandemic has created price volatility that is expected to continue in the coming months.
Consumer Intelligence said that being home longer at the beginning of the year meant people were quick to respond to problems at home.
"More and more people are staying at home for extended periods of time – burglars are being prevented from breaking into homes and water damage claims are being reduced as people can react quickly to leaks," said Harriet Devonald, pricing expert at Consumer Intelligence.
“What we also see on the PCW home market (price comparison website) is a kind of price war, triggered by a few providers – with PCW-led sales strategies – who have really tried to enlarge their home books.
"And this has sparked reactions from some of the bigger players trying to keep up and protect their ground."
Homeowners under the age of 50 benefited from the lion's share of the premium decline, which fell 8.9% over the period, while older homeowners only reported a 4.5% decline.
While there have been sustained decreases across all regions, there have been significant regional variations, with Yorkshire and Humber recording a 10.9% decrease.
Wales saw the smallest decline over the 12 months as prices fell only 3.99%.
Ms. Devonald added, "We expect new business premiums to rise as the market levels out new business and renewal prices – but how much we have yet to see."