Households renewing their insurance policies have seen the bills for their cover fall after regulatory changes forced insurers to stop charging new customers less than existing clients, Association of British Insurers (ABI) research shows.
The ABI’s latest household premium tracker survey revealed that the average renewal premium for contents insurance now stands at £124, down £14 since January, the month the reforms from the Financial Conduct Authority took effect.
For buildings cover, the average premium at £247 fell by £27 while the average price paid for new policies for buildings cover, at £184, is up £9 since the beginning of the year.
Callum Tanner, the ABI’s manager, general insurance, said: “Falls in the average cost of home buildings and contents insurance will be welcomed by households facing rising bills, as the cost-of-living crisis shows no signs of easing.
“Despite more expensive building materials and higher labour costs, property insurers continue to do all they can to deliver competitively priced home insurance.”
