Household insurance prices fell by around 5.5% in the first quarter of 2014 despite large bills incurred by insurers due to recent floods, according to a British Insurance Brokers Association index.
The UK suffered from the wettest winter on record between December 23 and February 28 this year where the insurance bill reached £446m.
Published at the weekend, the index from BIBA and Acturis, an insurance IT service provider, highlighted that average consumer policies dropped 5.5% compared to the beginning of 2013.
The index also suggested that motor insurance premiums continued to fall by around 5.5% in Q1 2014.
Steve White, BIBA's chief executive, said: 'It is positive news for consumers. Premiums are continuing to drop because of progress that the industry has made with reducing uninsured driving and the reforms to the legal system which have reduced the cost of claims.
'Insurance brokers are telling us that strong competition is also helping to drive the reduction.'
The Competition Commission is investigating the £11bn motor insurance market after it concluded that the market was distorted and premiums were too high.
Additionally, the index showed that premiums for small-to-medium-sized enterprises remained steady when comparing Q1 2014 to the same period last year, BIBA said. Within this it found that commercial vehicle premiums fell by 2% and commercial package premiums grew by around 3%.
Theo Duchen, co-chief executive of Acturis, observed that premiums in the commercial market remain fairly flat, mainly down to a large amount of capital and competition.
'Premiums also appear not to have been impacted by any major claims events recently which helps to maintain premium levels,' he added.