The research showed that the rise in providers has been driven by comparison websites and major retail brands, creating unprecedented choice for consumers and driving down prices.

The increased competition will enable homeowners to have more choice at competitive rates, and enable insurers to meet the needs of different customer groups.

However, Mike Powell, Defaqto’s analyst for general insurance said that the industry has started to move towards a focus on price, and away from the cover and benefits offered by policies.

He said: “We believe there are long-term implications for insurers, who may need to consider how they restrict premiums while simultaneously lowering the cost of acquiring and retaining new customers.”

He added: “In addition, there are increasing signs that a race to the bottom with regards to premiums could emerge – and this could be detrimental to consumers and the industry as a whole.”

Sponsored