Average motor premiums dropped by 0.7% in October and then 0.3% in November, according to Pearson Ham Group’s general insurance price index. It said average home insurance premiums fell by 0.5% in October and 0.1% in November. Both motor and home premiums are down by more than 13% on an annual basis.

Stephen Kennedy, director at Pearson Ham Group, said: “Motor insurance pricing continues to drift lower, but at a much slower rhythm. We’re now in a phase where broad price cuts are giving way to finer adjustments – insurers appear to be near a sustainable floor in pricing and are refining their positions rather than engaging in aggressive undercutting.”

Frances Luery, product manager at Pearson Ham Group, added: “We’re seeing clear signs that the home insurance market is hitting its floor after a prolonged period of intense competition. Premiums are now materially lower than they were a year ago, and the minimal change in November signals that insurers have largely recalibrated their pricing following the surge of claims inflation we saw in previous years.”