IRN Publish Home Insurance Report

27 Feb 2019

Home Insurance Market Worth More than £7 billion

IRN Research estimates that home insurance gross written premiums (GWP) will reach around £7.5 billion in 2018, a rise of around 4% on the previous year. Consumer expenditure, as opposed to GWP, rose by 6.9% in 2018, however, excluding the impact of premium inflation on the figures, then expenditure rose by only 1.4%.

But Home Insurance in for a subdued future 

Between 2018 and 2023, IRN Research predict that home insurance GWP will rise by a steady, if unspectacular amount, averaging around 3% per year. In real terms, once the impact of inflation is considered, premiums are predicted to rise by around 1% per annum.  Intense price competition will keep growth relatively subdued

Home Insurance driven by multiple forces

Key factors influencing the market today are:

  • The continued rise in household numbers and the recent growth in rented accommodation
  • The impact of adverse weather events and climate change on claims (e.g. claims for flooding and escape of water)
  • The desire for home improvements among home owners and modern construction techniques which are encouraging claims for escape of water and fire
  • The growing willingness of households to switch insurers to get lower premiums
  • The growing focus of the industry on using InsurTech to improve customer engagement and offer more competitive and tailored prices
  • The rise of Insurance Premium Tax in 2017
  • The FCA investigation into price discrimination and “price walking”
  • The decline in the number of burglaries but rise in other thefts from the home
  • Growing competition which is keeping premium rates keen

This report looks at the domestic home/property insurance market, where home insurance is defined as insurance which covers individuals against the cost of repairing or rebuilding their home or replacing its contents. This report considers the size of the market, recent trends, the major players, forecast for the future and sets out the environmental framework in which insurance is sold today.

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