UK Household Insurance: Market Dynamics and Opportunities 2024

This report analyzes the UK household insurance market, looking at drivers of uptake across different demographics and dwelling types. The report discusses the claims landscape in 2023 as well as the housing market and upcoming regulatory changes within insurance. Incumbent competitors are analyzed and compared, as are newcomers and insurtechs within the space. Future impactors in the market, including climate change and smart home devices, are also covered.

The analyst anticipates that gross written premiums (GWP) in the household insurance sector will rise by 5.8% by the end of 2024, building on an 8.7% increase to GBP7.07 billion in 2023. The analyst forecasts that GWP will continue to grow in 2024, driven by an increase in premium rates rising. Growth in 2023 was largely driven by an 11.6% rise in the average premium price across all three products. Specifically, premiums for combined, buildings-only, and contents-only insurance policies increased by 12.9%, 14.9%, and 7.1%, respectively, in 2023. However, it is crucial to note that the cost-of-living crisis/inflation continued to exert considerable pressure on consumers, resulting in 17.9% opting to cancel their policies. The housing market faced challenges due to high interest rates and inflation, leading to a decline in mortgage approvals in 2023.

Scope

• The UK household insurance market is expected to rise by 5.8% in 2024, following an 8.7% increase in 2023.
• The average premium prices for combined, buildings-, and contents-only insurance increased by 12.9%, 14.9%, and 7.1%, respectively, in 2023. Furthermore, the number of policies for all products fell due to financial constraints for consumers.
• Generation Rent remains an untapped demographic as roughly half have contents-only insurance in place.

Reasons to Buy

• Identify underlying drivers of demand and premium prices for home insurance products.
• Examine the nature of the claims landscape in 2023.
• Compare the performances of market leaders throughout the year.
• Determine how insurtechs are attempting to gain traction in the market.
• Understand the progression of home insurance lines into the future.