The latest General Insurance Price Index from Pearson Ham Group shows that premiums for both motor and home insurance declined at a faster pace in May 2025, suggesting a further softening across the personal lines market.
Motor premiums
Motor insurance prices dropped by -1.7% in May, an acceleration compared to April’s more modest -0.8% fall. This sharper movement signals that the softening of the market may be deeper and more sustained than previously anticipated. Over the past 12 months, average quoted premiums have fallen by -17%.
The median top-five quoted premium now stands at £455, down from £467 in April.
Stephen Kennedy, Director at Pearson Ham Group, said, “While last month’s data hinted at a possible stabilisation in motor pricing, the renewed acceleration in May points to a continued softening of the market. Insurers appear to be adjusting rapidly to shifting claims dynamics and competitive pressure, which is now manifesting as more pronounced reductions across a broader range of customer segments. The coming months will reveal how much this cycle continues.”
Home insurance premiums
Home insurance premiums saw their most substantial monthly decline of the past year in May, falling by -1.9% and bringing the annual drop to -6%. The da