UK Travel Insurance: Distribution Dynamics 2024

UK Travel Insurance: Distribution Dynamics 2024

Summary

This report explores consumer purchasing behaviors and preferences in the UK travel insurance market. It identifies the most influential customer drivers when purchasing a policy and reveals the most popular providers. New trends and innovations are highlighted, as well as the key factors that will shape the travel insurance space over the next few years.

In 2024, 26% of travel insurance purchases were via price comparison websites. Their market share increased by 1.4 percentage points (pp) compared to 2023. Meanwhile, online purchasing continued to dominate the market in 2024, accounting for 77.6% of total purchases-up from 75.8% in 2023.

Scope

• Purchases made via PC or laptop experienced a decline of 4pp compared to 2023, while the use of providers' applications for purchasing saw an uptick of 2.7pp in 2024.
• In 2024, 62.4% of customers elected to renew their policies with their current insurer. However, the percentages of those who compared options before renewing or renewed without shopping around decreased by 1.5pp and 3.3pp, respectively.
• The proportion of customers transitioning to alternative providers increased by 3.9pp in 2024 compared to the previous year. According to GlobalData's 2024 UK Insurance Consumer Survey, 73.4% of respondents favored switching to a new insurer primarily due to the more competitive premiums offered.

• Understand consumer purchasing decisions and how these will influence the market over the next few years.
• Improve customer engagement by recognizing what is most important to them and how insurers can adapt their products and services to meet their needs.
• Compare the Net Promoter Scores of key insurance providers.
• Discover which providers lead the way in the travel insurance space and learn about new product innovations.
• Adapt your distribution strategy to ensure it still meets customer purchasing behaviors.