Insurance premiums for both motor and home cover continued to fall in November 2025, but the pace of decline eased markedly, according to Pearson Ham Group’s General Insurance Price Index.
The index shows motor and combined buildings & contents premiums remain more than 13% lower than a year ago after five consecutive quarters of declines, but month‑on‑month reductions have slowed. That suggests competitive pressure is persisting but that pricing may be approaching a floor as insurers shift from broad cuts to more targeted adjustments.
Pearson Ham reports that the average of the top‑5 quoted motor premiums fell by about 0.7% in October and a further 0.3% in November. That represents a materially gentler decline than the roughly 1% monthly falls seen in Q3 2025 and contrasts with a Q3 drop of 2.9% overall.
“Motor insurance pricing continues to drift lower, but at a much slower rhythm,” said Stephen Kennedy, director at Pearson Ham Group. He added that the market is moving from broad price cuts to “finer adjustments,” with insurers “near a sustainable floor in pricing” and emphasising profitable growth and selective underwriting over aggressive volume chasing.
Combined buildings and contents premiums dipped about 0.5% in October and were effectively flat in November, with a 0.1% reduction, Pearson Ham’s index shows. This is a sharp slowdown compared with roughly 2% monthly declines in Q3.
Frances Luery, product manager at Pearson Ham Group, said the home market appears to be “hitting its floor” after a prolonged period of intense competition, noting that minimal movement in November suggests insurers have “largely recalibrated their pricing following the surge of claims inflation we saw in previous years.” She cautioned, however, that seasonal claims pressure over winter could alter that picture.
Pearson Ham’s analysis argues the era of across‑the‑board price reductions is giving way to more differentiated pricing. Insurers are expected to move toward segmented strategies that vary by customer risk, loyalty and distribution channel, which means headline averages may mask more divergent outcomes at policyholder level.
Both motor and home premiums are now over 13% below their year‑earlier levels, reflecting cumulative reductions across several quarters. But the evidence of slowing declines suggests the market is settling into a more controlled competitive phase rather than continuing rapid price erosion.
