The Association of British Insurers has published new figures showing the level of claims support provided by insurers during the second quarter of 2026. The data covers both motor insurance and domestic subsidence claims, and the numbers are a useful reminder of the cost pressures currently affecting the wider insurance market. They also provide a helpful Consumer Duty lens for brokers when explaining price, value and cover to customers.
For motor insurance, insurers paid out a record £3.2 billion to support customers in Q2 2026. This was 5% higher than the previous quarter and 7% higher than the same period last year. The average motor claim also rose to £4,900, up 4% on the previous quarter.
A key factor remains the cost of vehicle repairs. Modern vehicles increasingly include cameras, sensors and driver assistance systems, which can improve safety but also make repairs more complex and expensive. The ABI also reported a sharp increase in windscreen repair costs, with the average cost rising 7% during the quarter to £283.
Despite these claims pressures, average motor insurance premiums remained relatively stable. The average premium paid increased by £6, or 1%, during the quarter to £566. When adjusted for inflation, this was still £14 lower than the average premium in the same quarter of 2025. Even so, some customers may still feel the impact of higher renewal prices, making clear and balanced explanations especially important.
The ABI’s latest Property Insurance Tracker also showed that home insurers paid out £72 million for domestic subsidence claims in Q2 2026. The average subsidence claim reached a record £20,000, more than £2,000 higher than in the same period last year.
This follows a period of unusually warm and dry weather, including the warmest spring on record in England and Wales and the third warmest across the UK. Prolonged dry weather can increase the risk of ground movement, particularly where soil loses moisture and shrinks, which can lead to damage to buildings.
For brokers, the figures provide useful context to help explain why claims costs remain under pressure, why pricing can be difficult to predict, and why customers should be encouraged to focus on suitable cover rather than price alone. From a Consumer Duty perspective, this is also about supporting good customer outcomes; helping clients understand what they are buying, how the policy may respond if they need to make a claim, and why the cheapest option may not always be the most appropriate. Clear explanations at renewal are particularly important where clients are facing premium increases or have questions about the cost of insurance.