The Association of British Insurers claim that the UK home insurance industry paid out £782,000,000 in claims during the second quarter of 2023.  Consequently, we have experienced capacity restriction and withdrawal coupled with rating increases. We expect a similar situation in 2024 exacerbated by the recent flooding.


According to Ernst & Young, in 2022 insurers recorded a net combined ratio of 122%. Improvements are expected in 2023 and 2024, with forecasts of 114% and 104% respectively. As a result, premiums increased by 17% in 2023, with further increases expected this year. The level of increase could be as much as a third over the next two years, according to the Financial Times.


The mid net worth sector of the market has become particularly challenging: Home & Legacy and Horizon Underwriting both exited due to pricing and capacity challenges; Azur were acquired by Aviva further reducing market access; and Zurich have revised their personal lines distribution strategy to focus exclusively on high net worth clients.


The main factors influencing the market are the high severity weather events impacted by climate change, high inflation and strained supply chains. All combining to drive up home insurers’ losses last year.


We continue to explore the market to ensure we can provide comprehensive solutions for your customers. In the last quarter of 2023, we opened three new insurer agencies and discussions continue with other markets who can provide us with a placement edge.


As always, if you need to discuss this in any further detail, please let me or the team know.