The latest findings from Pearson Ham Group’s January 2024 Insurance Price Index reveal that premium pricing across personal lines continues to be on the rise, with the exception of the UK motor insurance sector, which experienced a notable slowdown in premium inflation.

In motor insurance, premium inflation continued its deceleration in January 2024, following the initial decline observed in Q4 2023. Competitive car insurance prices dropped by an average of -2.7% in January 2024 but compared to 12 months ago, premium prices are an average 44% higher, a 4% reduction compared to the Q4 year-on-year figure (48%).

Pricing consultancy Pearson Ham has expanded its benchmarking activities to include travel and pet insurance. Travel insurance saw an upward trend in policy prices. Annual multi-trip policy prices increased by 3.1% in January 2024, while single-trip travel insurance saw a 1.2% increase, continuing the upward trend observed in Q4 2023. Pet insurance saw lifetime cover prices surge by 17% compared to the same time last year, boosted by a 1.5% increase in January.

Stephen Kennedy of Pearson Ham Group, said: “As we expand our benchmarking activities to include travel and pet insurance, our January insurance price index confirms that following an unprecedented phase of surging premiums, motor insurance premiums are being reduced by most insurers.

“However, the remainder of 2024 will be challenging for insurers. Recent weather-related events and other significant pressures have sustained the upward trajectory in pricing for combined buildings and contents, travel, and pet insurance. How long this will continue to remain is difficult to determine but we expect more clarity by the end of this quarter.”