Competition and COVID-19 have pushed home insurance premiums down by 8.2% in the last 12 months, according to insurance analytics specialist Consumer Intelligence. Since it first started collecting data in February 2014, it said premiums had decreased by 6.9%.

Harriet Devonald, pricing expert at Consumer Intelligence, said: “More people have been staying at home for longer periods – with burglars deterred from breaking into houses and water damage claims down as people are on hand to respond quickly to leaks.”

She said there had also been a pricing battle between providers using distribution strategies led by price comparison websites, which had triggered larger players to cut their own pricing to protect market share.

Looking forward, she added: “We expect new business premiums to go up as the market levels out new business and renewal pricing – however by how much, we have yet to see.

“These new rules are likely to impact home insurance far more harshly than motor, with home insurers having a lot of old and large back books. And some insurers will be affected more than others.”

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