The data represents an abrupt (and unexpected) reversal on second quarter figures, when average building cover premiums were reported to have risen by 2.3% (to £119.79- an annual increase of 5%) and contents cover rose by 1% (to £60.72).
Moreover, with the index confirming steady (and considerable) increases in premiums over the past two years or so (with average rates rising by a whopping 8.5%- or nearly three times the current rate of inflation- in 2017 according to research by Consumer Intelligence) and widespread fears that hot summer conditions could trigger a potential ‘spike’ in subsidence claims (and therefore, premiums), these latest figures represent something of a ‘victory’ for consumers and a golden opportunity to take advantage of lower than expected prices.
Yet, according to figures provided by finder.com, somewhere in the region of 5 million (or almost one in five) of all UK properties are currently unprotected by any form of home insurance. So, what gives? One possible explanation for this baffling statistic could be the recent spate of news stories regarding long-term home insurance customers being charged higher rates for policies than newer customers, with insurance companies using the savings which these generate to subside low price ‘headline’ deals. Another could relate to affordability issues (with 42% of uninsured homeowners saying they can’t afford it- according to finder).
But, a more likely factor would be that increasing numbers of consumers are beginning to succumb to a virus-like state of ‘inertia’ with regards to these products. Indeed, research conducted by Fairer Insurance and the Finance Foundation earlier this year has warned that the growing sense of ‘disengagement’ which it encountered in relation to insurance buying processes will need to be addressed and countered as a matter of urgency if the industry is to remain stable in the future. Which means that there is a mounting onus on brokers to make their clients appreciate the importance and long-term value of home insurance options and to maintain a pro-active focus on sales. To demonstrate a depth of knowledge and enthusiasm for protecting the best interests of custom bases that is sparklingly irresistible. Because a failure to do so at this point in time could prove to be disastrous further down the track.
