How insurance news affects what you pay
The price of an insurance policy is a prediction. Insurers set premiums based on what they expect to pay out in claims, plus the cost of running the business, reinsurance and tax. When any of those inputs move, the news matters to your wallet. Rising repair and parts costs push up motor premiums; higher medical and rebuild costs feed into travel and home cover; and changes to Insurance Premium Tax reach every policy at once.
Regulation is the other big lever. The Financial Conduct Authority oversees how insurers treat customers, and its 2022 ban on charging loyal renewers more than new customers reshaped the whole market. Decisions from the courts and government, such as the personal injury discount rate used to calculate serious-injury payouts, can move prices for millions of drivers in a single announcement.
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Insurance news categories
From the price of car cover to the insurers behind your policy, here is where to follow each part of the market.
Car insurance news
Premium trends, the Ogden discount rate and the latest cost-of-cover analysis for UK drivers.
See the latestMarket news
Mergers, regulatory shake-ups and the FCA pricing rules reshaping the UK insurance market.
See the latestTravel insurance news
Airline insolvency, government travel advice and the state of post-pandemic travel cover.
See the latestWhen to act on insurance news
The single most valuable habit in insurance is to treat every renewal as a decision rather than a default. Even after the ban on loyalty penalties, the gap between the cheapest and most expensive quote for the same cover can be hundreds of pounds, because insurers price risk differently and chase different customers. A market story, a takeover or a tax change is a useful nudge to run a fresh comparison.
It also pays to read cover rather than price alone. The cheapest policy is rarely the best if it carries a high excess, strips out features you need or excludes the very thing you are worried about. Our home, car and travel insurance guides explain what to look for, and our news coverage keeps you up to date on the changes that make a difference between one year and the next.
Insurance news FAQ
The Selectra team answers your questions
Premiums reflect the cost the insurer expects to pay across all of its customers, not just you. When repair bills, medical costs or theft rates rise, or when reinsurance becomes more expensive, prices go up for everyone. Tax also plays a part: Insurance Premium Tax is added to almost every policy. A clean, claim-free record helps, but it cannot fully offset market-wide cost pressure, which is why shopping around at renewal usually pays.
From 1 January 2022 the Financial Conduct Authority banned price walking in home and motor insurance. Insurers can no longer quote a loyal renewing customer a higher price than they would offer a new customer for the same policy. The reform ended the worst of the loyalty penalty, but prices still vary widely between insurers, so comparing quotes remains the best way to keep costs down.
Yes. When an insurer is acquired or transfers a book of business, your existing policy continues on the same terms until it expires. Claims are honoured and your renewal date does not change. You may see a different brand on your paperwork and deal with a new claims team, and the takeover can be a good prompt to compare the market before you renew.
Insurance Premium Tax (IPT) is a government tax on most general insurance, including car, home and pet cover. The standard rate is currently 12%, with a higher rate that applies to certain policies such as travel insurance. IPT is built into the price you are quoted rather than added separately at checkout, so a rise in the rate feeds straight through to premiums.
Looking to cut the cost of cover? Head back to our home, car & travel insurance guides.