What's happened
The average quoted price of home insurance surged by 41.6% in the 12 months to April, the largest increase since 2014. Consumer Intelligence data reveals significant price hikes across various regions in the UK, with London experiencing a 49.9% increase. Axa home insurance renewal prices have also seen a substantial rise, with one customer facing a 70% increase after nearly a decade of loyalty.
What's behind the headline?
What the papers say
According to Consumer Intelligence, the average quoted price of home insurance rose by 41.6% in the 12 months to April, the largest increase since 2014. The Association of British Insurers' policy adviser, Louise Clark, acknowledged the financial pressure on households and insurers' commitment to competitive pricing. In contrast, a long-term Axa customer shared their frustration with a 70% renewal price hike, far exceeding inflation rates.
How we got here
The surge in home insurance prices can be attributed to various factors, including rising building material and labor costs. Insurers are facing challenges in balancing affordability for customers with the need to cover increasing expenses. Consumer Intelligence's data reflects regional disparities in premium increases, with London and the South East experiencing the highest jumps.
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