The UK home insurance market recorded a net combined ratio of 122% in 2022 according to EY’s latest UK Home Results Analysis, making it the worst year on record. EY said further losses were expected in 2023 and 2024 and that premiums were forecast to rise by more than a third (36%) during the next two years.

Richard Reed, head of UK general insurance at EY, said: “2022 was undoubtedly a challenging year for UK home insurers, with firms incurring unprecedented losses. While other poor performing years were driven almost entirely by adverse weather, 2022’s result was also impacted by challenging market conditions.

“2023 is expected to perform slightly better – in part due to benign weather for much of this year – yet many of the challenges, such as claims frequency and inflation, remain, and unfortunately the data to date indicates that this year is still likely to be one of the worst in recent times.” 

EY said the market was forecast to return a net combined ratio of 114% in 2023, and of 104% in 2024.

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