UK Travel Insurance: Market Dynamics and Opportunities 2024

UK Travel Insurance: Market Dynamics and Opportunities 2024

Summary

This report analyzes the UK travel insurance market, including drivers of uptake, the claims landscape, and upcoming regulatory changes. Incumbent competitors are analyzed and compared while key factors impacting the market are also discussed, including inflation and emerging technology such as artificial intelligence and parametric insurance.

The UK travel insurance market experienced growth of 59.5% in 2023 and is expected to grow by 8.3% in 2024, reaching gross written premiums (GWP) of GBP1.1 billion. Growth has largely been driven by an increase in the number of policyholders, as more consumers resumed traveling after pandemic-related restrictions eased. The expansion was primarily attributed to higher travel volumes, rather than a significant rise in insurance premiums. As international and domestic travel picked up, more individuals sought coverage, leading to a surge in policy uptake across the market. Moreover, in 2023, single-trip travel insurance overtook multi-trip policies-a shift that may be attributed to squeezed consumer budgets and ongoing uncertainties in the travel landscape. As households face financial pressures, consumers are opting for single-trip coverage to avoid the upfront costs of annual multi-trip policies. Additionally, uncertainty around travel plans, influenced by economic conditions and potential disruptions, has led many to choose single-trip policies for greater flexibility and lower short-term financial commitments.

Scope

• In 2023, single-trip policies overtook multi-trip to become the most popular type of travel insurance policy.
• Average premiums fell by 12% to GBP56.18 in 2023.
• The number of claims notified increased by 58.4% in 2023.
• The cost of claims increased by 45% in 2023, while the average value of claims fell by 8.5%.

Reasons to Buy

• Examine the size of the UK travel insurance market
• Identify who the key players are and what they offer
• Discover GlobalData’s forecasts for the future of the UK travel insurance market
• Discover the impact of the cost-of-living crisis on travel insurance