There has been an increase in the number of home insurance providers operating in the UK, according to recent data.
The independent research company, Defaqto, has found that there are 73 per cent more home insurers now when compared to 6 years ago. Since 2004 the home insurance sector has seen an explosion in new providers. This can be put down to the rise in price comparison websites and also leading supermarkets who have diversified into the insurance industry in recent years.
The increase in home insurance companies helps keep rates competitive for consumers, but there is a danger that customers will choose the cheapest price, as opposed to looking at the benefits that each policy offers.
While more insurers means more competition for consumers, Mr Powell, insight analyst for general insurance at Defaqto, suggests that it is not all good news for customers as the race to offer the cheapest premiums could have a detrimental effect on the quality of cover.