The extent of the competition for customers within the UK's
home insurance market is likely to keep premiums relatively low in months to come, according to a recent report.
A study by Datamonitor has concluded that consumers will not see their premiums increase dramatically, despite the expectation that home insurance providers will aim to make up for the losses that resulted from the major flooding in parts of central England last year.
The floods were blamed for seeing
home insurance firms recorded significant losses in 2007, but an increase in consumer awareness, partly because of online
home insurance services, means that prices are likely to stay low, the research company has claimed.
"As more consumers use the internet to purchase their insurance, insurers may fall into a trap of continuing to compete aggressively in 2008 in a bid to retain their market share," said Mahreen Hussein, a financial services analyst from Datamonitor.
Figures released earlier this month by Halifax revealed that high winds around the UK resulted in almost 1.5 million people experiencing roof damage to their properties.
InsureandGo offers competitive
home insurance deals for a range of coverage options.