CEO-Update WHO2 Global. Personal Lines August 2025

Let’s keep this simple. Here’s what we think is going on in the personal lines market right now.

Car 

Car insurance prices have finally started to ease. After two years of big hikes, the last couple of quarters have seen average premiums come down a bit – around 4% lower in Q2. Don’t expect this to carry on forever though; we may be close to the bottom.

What this means: competition is fierce, but it’s still a margin game. Renewal pricing and retention tactics matter more than ever.

Home

Home insurance is cheaper than it was earlier in the year, average prices dropped around 3% in Q1 and again in Q2. But let’s not kid ourselves: compared to 2-3 years ago, prices are still much higher. 

What this means: good for customers in the short term, but insurers are still nervous about weather events and reinsurance costs later in the year.

Van

The van market is softening too. Prices are down nearly 5% so far this year. Big players are cutting hard on PCWs to keep their share.

What this means: good time for tradespeople and small businesses to shop around, but brokers need to watch margin leakage.

Bike 

Bike insurance is following the same trend – average premiums fell to around £241 in Q2, down about £30 on the quarter. Even more interesting: in some cases, fully comp cover is now cheaper than third-party.

What this means: there are growth opportunities if you can package bike cover with the right extras (gear, helmet, breakdown, pothole and license defence.  

Big Picture

• Prices are drifting down across most lines (car, home, van, bike)

• PCW traffic is falling, which means retention and cross-sell are now more important than chasing new business at any cost

• The FCA is watching premium finance closely – expect more pressure on APRs and fair value tests

• Weather claims and repair costs are still wildcards that could swing margins later in the year

What to Watch Next (30–60 days)

1. Motor – are we at the floor? Prices may stabilise and even tick up before year end

2. Home – cheaper right now, but watch reinsurance renewals; insurers may need to claw back

3. Premium finance – FCA’s interim findings due soon; fair value will be tested

4. Retention – with fewer PCW shoppers, keeping customers is where the real wins are

This isn’t a market to chase volume blindly. The smart money is on sharp pricing, strong retention, and making existing customers worth more over time. 

The views expressed in this article are those of WHO2 Global Ltd and do not constitute professional advice. All content is for informational purposes only.