Navigating Change: NBS’s Strategy for UK Household Insurance
11 February 2025
As you are aware, the UK household insurance market has seen significant changes over the past 24 months due to inflation, rising rebuilding costs, and regulatory changes. Premiums have increased, driven by higher construction material prices and labour shortages. Additionally, extreme weather events have led to more claims, prompting insurers to reassess coverage terms.
In 2023, the loss ratio for the UK home insurance market overall reached 118%, with similar trends expected in 2024. However, December 2024 saw a 1.3% drop in home insurance rates, hinting at potential market stabilisation.
How NBS is Adapting to the Changing Market
At NBS, we specialise in non-standard household insurance, setting us apart from standard providers. To remain competitive and continue securing both new and renewal business, our team will stay proactive and adaptable. Here are several steps we are taking:
Ongoing Monitoring: We will continue to track conversion rates, loss ratios, and internal rating processes. We will maintain an open dialogue with insurers to stay informed on market trends and adjust our approach as necessary to ensure our offering remains relevant.
Discounting: We will implement automated discounting to ensure we remain competitive and can offer your clients a competitive premium.
Engaging on Larger Risks: We will work closely with you our brokers to assess the necessity of additional coverage (e.g., accidental damage) and ensure that clients have the right NCD based on their history with us. For renewals, we will try to cap premiums and/or apply discounts to maintain customer retention.
Flexibility in Underwriting: Given the rapidly changing market dynamics, we will remain flexible in our underwriting approach. This means continuously reviewing and adjusting our criteria to reflect current conditions and emerging risks, while utilising advanced data analytics and technology to enhance our quotation processes. Our flexibility ensures we can adapt and provide competitive and relevant coverage options quickly.
Feedback: As they say, all feedback is a gift. If you don’t place a case with us, we love to find out why. We’d love to know why we missed out, who it was written with, etc. This vital information will keep us informed and allow us to investigate where we could do better for you and your clients in the future.
For more information on our range of non-standard household products, please visit our household product pages:
Home & Contents Insurance | Contents Only Insurance | Mid Net Worth (Non-Standard) Insurance | Business Home Insurance | Holiday / Second Home Insurance