Insurance premiums for both motor and home coverage continued their decline in the third quarter of 2025, according to the latest data from Pearson Ham Group’s General Insurance Price Index. While competition remains fierce, the rate of decline suggests the market is stabilizing and becoming more segmented.
The average of the top five quoted motor premiums dropped by 2.9% in Q3 2025, continuing the downward trend that began in April 2024. This follows a 4% decline in the previous quarter, indicating that while insurers are still competitive, the pace of reduction is slowing.
Monthly changes were consistent, with premiums falling by 1% in July, 0.9% in August, and 1.1% in September. Over the past six months, top-five prices have dropped by 6.8%, and on a year-on-year basis, premiums are now about 15% lower than in September 2024. However, despite this ongoing decline, premiums are still 9% higher than they were at the start of 2020, showing that the market has not fully unwound from the inflationary effects of the pandemic and post-GIPP period.
“Motor insurance pricing is still edging downward, but the pace of reductions has leveled off,” said a spokesperson for Pearson Ham. “We’re entering a more controlled phase of competition, where insurers are refining their strategies rather than focusing on drastic price cuts.”
The spokesperson noted that the market may be nearing a natural price floor, with greater variation expected in premiums based on customer type, risk profile, and distribution channel. Insurers are now aiming for sustainable market share rather than short-term volume.
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