UK
Motor and home premiums fall again as UK insurance prices trend lower – Pearson Ham
Pearson Ham Group’s latest General Insurance Price Index shows continued declines in UK motor and home insurance premiums in July 2025. Motor premiums fell 0.9% in the month and are now 16.3% lower year-on-year, with the median top-five price at £438. The pace of decline is slowing, suggesting the motor market may be nearing stability, though regional and vehicle value variations remain significant. Home insurance saw its sharpest monthly drop in a year, down 2.0% in July and nearly 10% lower than a year earlier, though still over 23% above mid-2023 levels. Pearson Ham expects both markets to move towards greater segmentation as insurers balance competition with claims and cost pressures.
Insurance sector urges detail on liability in self-driving vehicle rollout
The UK Department for Transport has launched a consultation on the Automated Passenger Services (APS) permitting scheme, part of the Automated Vehicles Act 2024, to guide the approval and oversight of autonomous taxi, private hire, and bus services. The scheme aims to enable commercial self-driving passenger operations without human safety drivers from spring 2026, ahead of full AV Act implementation in 2027. AXA Retail’s managing director Marco Distefano welcomed the move but stressed that detailed secondary legislation is essential to define liability, structure insurance, and ensure fair pricing. He noted that responsibility will vary depending on whether a human or the vehicle’s system is in control, with vehicle data being key to determining fault. The Association of British Insurers also supported the initiative, highlighting the importance of safety and data-sharing in the adoption of autonomous vehicles.
Fears of rise in uninsured drivers as insurance tax receipts soar
UK drivers faced a 9% rise in insurance premium tax (IPT) last year, raising concerns that higher costs could price some motorists out of coverage, especially young or low-income drivers. The AA urged the Treasury to cut IPT by 25% for all drivers and 50% for newly qualified motorists. Average motor insurance premiums jumped to £622 in 2024, partly due to rising claims, vehicle theft, and fraud, though early 2025 saw a 7% drop. The ABI called for government action to address these underlying cost pressures, including boosting repair sector capacity. A Treasury-led taskforce is reviewing solutions to curb high motor insurance costs, with a final report expected this autumn.
India
ICICI Lombard partners with Mahindra Finance to expand motor insurance distribution
ICICI Lombard General Insurance has partnered with Mahindra & Mahindra Financial Services to expand motor insurance distribution across rural and semi-urban India. Through Mahindra Finance’s network of over 1,300 offices covering 516,000 villages and 8,000 towns, customers will gain access to ICICI Lombard’s full range of motor insurance products. The collaboration aims to boost financial inclusion and insurance penetration among Mahindra Finance’s 11 million customers. ICICI Lombard CEO Sanjeev Mantri said the partnership will help the insurer reach deeper into rural markets, while Mahindra Finance CEO Raul Rebello highlighted its role in strengthening customer financial security.
Angentina
Due to the crisis, 6 out of 10 motorists switched to cheaper car insurance
Amid rising inflation and declining purchasing power, the auto insurance market is undergoing rapid change as many drivers downgrade their coverage to manage monthly costs. According to the Argentine Insurers Association (ADEAA), around 60% of motorists switched to cheaper policies, moving from comprehensive to basic third-party coverage. Customers are increasingly comparing prices and conditions, while insurers adjust premiums due to higher vehicle values and inflation. Brokers advise evaluating potential trade-offs, as lower-tier policies may not cover own-vehicle damages. In response, insurers are offering flexible, modular plans and discounts to accommodate cost-conscious policyholders.