Consultancy Pearson Ham Group has recorded a 0.8% drop in average motor premiums in April and an annual decline of 16.9%. In the home insurance market, it found there had been a more modest drop of 0.4% in April and of 4% over the course of the past 12 months.

Stephen Kennedy, director at Pearson Ham Group, said: “Motor insurance pricing continues to soften, but we are now seeing more fragmentation in how prices are adjusting across customer segments and vehicle types. The sharp falls of recent months are slowing, and this may be the early signal of a market beginning to stabilise.”

Frances Luery, product manager at Pearson Ham Group, added: “Home insurance premiums are still trending downward, but the rate of change has clearly slowed. We're seeing a market in transition - one that’s likely approaching a price floor.

“The data points to a more nuanced landscape, where premium movements differ by property size, type and region. It’s particularly interesting to see large homes holding steady while other categories continue to fall. This reflects how insurers are fine-tuning their pricing strategies based on evolving risk and cost dynamics.”