Household insurance premiums have begun to stabilise in early 2025, according to new data from general insurance provider Berkeley Alexander. In contrast to recent industry warnings of continued premium hikes, the firm’s nationwide household book data reveals that 35% of cases experienced price reductions at the start of the year.
For those policyholders who did see an increase at renewal, the majority faced only modest rises. According to Berkeley Alexander, 46% saw increases of 5% or less, while 53% experienced increases of under 10%.
Geoff Hall, chairman at Berkeley Alexander, said: “This is a welcome shift in market dynamics, with our data supporting a softening of home insurance premiums at the start of this new year.” However, he cautioned that policyholders still require expert guidance.
“Premium rate increases have been punishing, driven by inflation and a hard market cycle, but policyholders are not out of the woods yet. Overriding economic conditions remain uncertain and high claim volumes continue to have a negative impact. Advisors still have a vital role to play; they’re the front line in providing the best possible cover at the right price. Those that go beyond simply transacting insurance sales to delivering trusted advice based on needs and outcomes will reap the rewards of increased client retention. This is firmly supported by our data,” he said.
Berkeley Alexander’s findings suggest that advisors can better support household clients in 2025 by prioritising tailored advice over price-focused sales, selecting general insurance partners with a wide range of products, balancing coverage quality with affordability, and exploring voluntary excess options to reduce premiums. The firm also highlights the value of working with a provider that can re-quote policies from a broad panel of insurers to secure competitive renewal terms.
Hall added: “A GI provider with a broad panel can also serve as a key retention tool. Berkeley Alexander data shows that having a wide panel of insurers requoting at renewal can help keep premiums down. And even if premiums do rise, a good GI provider can still help by assisting with requoting and switching.”
