Slower growth expected for UK premiums

EY ITEM Club, a UK-based economic forecasting group, anticipates slower turnover growth in the UK insurance market.

Non-life premiums, forecast to grow 4.6% in 2025, are expected to lose one point in 2026, followed by further declines of 0.2 points in both 2027 and 2028.

Life insurance is projected to follow a similar trend, with growth slowing from 4.5% in 2025 to 3% in 2026.

According to EY, the sector’s outlook will be affected by the broader economic slowdown in the UK, reduced demand for insurance as household incomes weaken, and sustained pressure on certain classes of business, particularly motor and home insurance.