UK non-life insurance premium income is forecasted to grow 8.5% in 2023, up from 3.9% in 2022, before slowing slightly to 5.1% in 2024 and 4.1% in 2025, according to a recent analysis from EY Item Club.
This growth is expected to be driven by sizeable rises in premium prices, as well as improved household spending power boosting demand for policies.
But, EY noted that sustained inflation and cost pressures are likely to continue to strain insurers’ overall balance sheets, and premium income growth is expected to slow into 2024 and 2025.
