The home insurance market in the UK achieved a combined operating ratio of 103% in 2024. This was an improvement on the 111% achieved in 2023 and the 117% in 2022. Moody’s Ratings published the figures and said the average premium in the UK had risen by more than 30% since 2022 in a bid to combat losses.

Moody’s Ratings highlighted industry challenges such as elevated loss costs driven by inflation, rising reinsurance expenses, and increased catastrophe exposure. It said carriers had responded by increasing premiums, tightening underwriting terms and refinong risk selection.

The report stated: “The UK market faces rising loss costs from storms and flooding, escape of water and subsidence (damage to houses caused by ground movement that is exacerbated by drought, heavy rainfall and temperature fluctuations).

“Annual industry losses relating to weather events have trended upward in recent years. The average premium in the UK has risen over 30% since 2022, with total premiums totalling almost $14bn in 2024.”