Competition in home insurance keeps prices low
by Richard Kilner
Story link: Competition in home insurance keeps prices low
A report compiled by Datamonitor analysts reveals that house insurance costs are unlikely to rise, due to the increasingly competitive nature of the marketplace.
As consumers have become less naive and more sophisticated in their approach to home insurance, price comparison sites have flourished.
This has driven up competition, and correspondingly prevented prices from increasing.
In recent years the home insurance industry has had something of a rollercoaster ride, from £167m profits two years ago to a £300m loss last year, following the terrible flooding that struck Yorkshire, Gloucestershire and Worcestershire.
According to Datamonitor, this year will see profitability return to the sector.