Switching activity across the UK’s general insurance market has fallen to its lowest level on record, signalling a structural shift in how consumers choose and remain with insurers, according to new data from Consumer Intelligence.
The firm’s latest report, The End of Churn, reveals that motor insurance switching has dropped to 33%, down from peaks of nearly 50% in 2024. Home insurance switching has also fallen to 36%, with only 27% of customers aged 65 and above changing provider. Shopping activity has declined as well, with 72% of motor and 70% of home customers now comparing quotes, compared with previous highs of 85% and 80% respectively.
The research attributes the slowdown to stabilised renewal premiums following the introduction of the General Insurance Pricing Practices (GIPP) rules, which curtailed the so-called “loyalty penalty.” Price remains a factor—47% of motor customers said their new policy was cheaper than renewal, and 35% of home customers cited price as their main reason for switching—but service and claims experience are gaining influence.
Consumer Intelligence’s long-term data, based on monthly surveys of 1,000 motor and 1,000 home insurance customers, shows 13% of home and 8% of motor customers who switched did so after poor claims experiences. Conversely, 14% of motor and 16% of home customers chose to stay with their insurer because of positive claims outcomes.
The report identifies three defining shifts in the market: weakening price triggers, the growing role of service quality as a differentiator, and rising customer inertia. It forecasts that by 2026, motor switching will plateau at 30–35% and home at 35–40%, with shopping rates stabilising around 65–70% for motor and 60–65% for home insurance.
Consumer Intelligence CEO Ian Hughes said this marks “the end of price-led competition and how insurers can create sustainable growth through customer value, experience, and innovation.” He added that insurers will need to “pivot from competing on price to creating value through innovation, service excellence and ecosystem development.”
The study also highlights that each additional product held with an insurer increases customer retention by about 15%, supporting cross-product and partnership strategies as key growth levers.
As the market enters a phase of reduced churn and higher loyalty, insurers face a new competitive reality: success will depend less on acquisition and more on retaining and engaging customers through value and service.
What do you think—can insurers successfully move beyond price and build genuine customer loyalty in this new insurance landscape? Share your thoughts in the comments.
