The latest General Insurance Price Index from Pearson Ham Group shows that UK motor and home insurance premiums fell again in August, extending the downward run seen throughout the year.
Average top-five motor premiums slipped 0.9% month-on-month, leaving prices 16.1% lower than a year earlier and 6.9% below January levels. The median top-five motor premium stood at £434 in August, compared with £438 in July, indicating a measured softening rather than a steep correction.
Home insurance saw a faster adjustment. Average top-five combined buildings and contents premiums dropped 2.0% from July, taking them 11.7% below the same month last year and 9.9% beneath January. At £196, the median home premium fell below £200 for the first time in 18 months.
Meanwhile, regional trends reflected the broader pattern. Motor declines were most pronounced in the North East, West Midlands and North West, all down 1.3%. In home, the sharpest reductions came in the West Midlands (-2.5%), Yorkshire & the Humber (-2.4%) and the North West (-2.3%).
According to Pearson Ham Group, motor pricing is edging toward stability after a period of sharp corrections. August’s modest decline suggests the market is approaching a steadier phase, with the next stage likely to be determined by claims severity, parts and repair costs, and the level of competition for new business.
Home insurance, by contrast, has undergone a more significant reset. The consultancy noted that another sharp monthly fall in August has taken meaningful pressure out of premiums, though greater segmentation is expected ahead. Outcomes are likely to diverge more strongly by property type, region and recent claims experience as carriers align pricing with loss-cost realities before winter weather sets in.
The shifts come as major UK insurers recalibrate strategies following volatile price movements over the past two years. Aviva has recently emphasised pricing discipline in motor, while Admiral reported sharper home insurance competition eroding margins. Direct Line, under new leadership, has been repositioning its motor book with tighter underwriting controls, reflecting an industry-wide move toward more selective, segment-driven pricing.
Taken together, August’s results reinforce the view that motor is progressing toward stabilisation, while home has seen a sharper reset.
Insurers are expected to lean on more granular underwriting and selective risk appetite to balance competitiveness with claims inflation pressures in the months ahead.
