Fewer UK insurance customers are switching providers as loyalty grows and priorities shift beyond price, new data from Consumer Intelligence show – but what’s prompting that apparent loyalty?
The firm found that only 33% of motor and 36% of home policyholders moved insurer in the first half of 2025, marking a record low as service quality and claims handling increasingly influence decisions.
Consumer Intelligence’s report, The End of Churn, indicated that switching activity across the UK’s general insurance market has dropped to its lowest level since the firm began tracking the data. Motor insurance switching declined from nearly 50% in late 2024 to 33%, while home insurance switching fell to 36%.
The report also found that only 27% of customers aged 65 and above changed home insurance providers. The proportion of customers comparing quotes before renewal also decreased - 72% for motor and 70% for home insurance - down from highs of 85% and 80% in earlier years.
The slowdown coincides with stabilising renewal premiums following the implementation of the Financial Conduct Authority’s General Insurance Pricing Practices (GIPP) rules. The policy ended the “loyalty penalty,” where long-term customers were charged higher renewal rates than new ones.
While price remains a strong motivator, Consumer Intelligence found that switching behaviour is no longer driven solely by cost. Among those who changed providers, 47% of motor and 35% of home customers cited cheaper policies as their reason for moving. However, 24% of home and 21% of motor customers switched to secure better cover, while 13% of home and 8% of motor policyholders moved after negative claims experiences.
For those who stayed, claims service was an important factor, with 14% of motor and 16% of home customers remaining loyal due to positive experiences.
Market data suggest that pricing is stabilising after a prolonged period of increases. According to Pearson Ham Group’s July 2024 price index, home insurance rates dropped slightly by -0.2%, bringing the average premium to £416—still 29% higher than the same period last year. Regional variations were recorded, with the northwest of England seeing a -0.8% fall, followed by Northern Ireland and the northeast at -0.7%. Semi-detached properties experienced the largest decline in premium rates.
Motor insurance prices have followed a similar trajectory, decreasing by -1.5% in June. Premiums are now 3% higher than a year ago, compared with a 47% increase in the fourth quarter of 2023.
Despite easing premiums, insurers continue to face cost pressures. The Association of British Insurers (ABI) reported £3.2 billion in car claim payouts in the first quarter of 2025 - the highest quarterly amount since 2013 - with £2.1 billion spent on repairs. Factors such as higher labour costs, longer repair times, and more complex vehicle designs have contributed to persistent cost pressure.
On the home insurance side, the ABI recorded £15 billion in claims in the first quarter, £170 million higher than a year earlier. Labour and material costs, along with severe weather events such as flooding, cold snaps, and subsidence, have increased the volatility of home insurance losses.
Consumer Intelligence forecasts that by 2026, motor switching will stabilise at 30–35% and home switching at 35–40%, with comparison activity levelling at 65–70% for motor and 60–65% for home insurance.
Are you staying with your insurer or planning to switch this year? Share your experience in the comments.
