If every week is a very long time in politics, a 12 months in insurance coverage can really feel like an eternity. The UK basic insurance coverage market in 2024 was nothing wanting eventful rising, falling, reshuffling, and recalibrating in ways in which stored insurers, brokers, and analysts alike on their toes—from house 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 trade.
With Shopper Intelligence conserving a detailed watch, right here’s what occurred in 2024—and why these within the know have already got a watch on what’s subsequent.
House insurance coverage: A 12 months of stabilisation and technique
2024 started with house 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—at the very least for some.
- Premium developments: New enterprise premiums for mixed house 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 minimize, quickly rising its aggressive share and dethroning Coverage Skilled because the top-ranked house insurer.
- Market differentiation: Tiered merchandise continued their march throughout the trade, with insurers stacking a number of manufacturers to seize prime positions on worth comparability web sites (PCWs). Aviva, particularly, mastered this technique.
- Exit of Extra Than: Extra Than bowed out of recent enterprise in July after its acquisition by Admiral, shifting buyer motion patterns. Whereas the exit didn’t ship shockwaves via pricing, different manufacturers—particularly Direct Line—may acquire 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 higher 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 house 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 main points inform a extra fascinating 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 trade 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 decreasing 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 minimize provides
- Basic Insurance coverage Pricing Practices (GIPP), launched in 2022, had been meant to curb worth discrimination. However by This autumn 2024, marketed worth minimize provides had returned to file ranges, surpassing even pre-GIPP peaks.
- November noticed 50% extra worth minimize provides than the earlier file, with tiered merchandise enjoying a key function in fuelling competitors.
Strategic strikes and market reshuffling
The 12 months wasn’t nearly worth actions—structural adjustments formed the aggressive panorama.
- Aviva’s £3.7bn takeover of Direct Line Group in December was probably the most important 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 house insurance coverage, whereas a number of Markerstudy manufacturers exited in December as a part of a broader strategic reorganisation between house and motor insurance coverage.
In the meantime, PCWs’ dominance in house and motor insurance coverage remained unshaken. Insurers continued to concentrate on stacking manufacturers on the high of search outcomes, with Hastings main the cost in house insurance coverage and Aviva making comparable strikes in motor.
What Does It All Imply?
If 2023 was about fast inflation, 2024 was about recalibration—stabilisation in house insurance coverage, aggressive realignments in motor, and strategic model actions shaping the longer term.
Extra importantly, this 12 months’s occasions spotlight a transparent actuality: understanding the market isn’t nearly monitoring costs—it’s about figuring out what’s actually driving the shifts beneath the floor.
For these within the know, one factor is certain: if you wish to perceive what’s occurring subsequent, you want the proper insights.
And that’s the place Shopper Intelligence is available in.
(We’ll depart the suggestions for our purchasers. But when that you must know tips on how to navigate 2025, you understand who to ask.)
