United Kingdom (UK) Travel Insurance Market Dynamics, Trends and Opportunities
Summary
The UK travel insurance market experienced growth of 73.1% in 2022, reaching a value of GBP630.4 million. This was mainly due to a rise in premiums, with the average premium for single-trip and multi-trip policies rising by 10.9% and 101.7% respectively. This came despite the number of policies written falling by 4.2% in 2022, as consumers reduced discretionary spending amid the cost-of-living crisis. The cost-of-living crisis has also led to claims inflation within the industry, which in turn has prompted insurers to increase premiums. The cost of claims increased by 230.6% from 2021 to 2022, reaching GBP352 million in 2022.
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 notable newcomers and insurtechs are identified. Key factors impacting the market are also discussed, including inflation and emerging technology such as artificial intelligence and parametric insurance.
Scope
- Multi-trip policies continue to dominate the market, accounting for 63.9% of policies written in 2022. However, this represents a 26.1 percentage point (pp) decrease compared to 2021.
- The average premium cost for a single-trip policy rose by 10.9%, reaching an average of GBP57.14 in 2022. Multi-trip premiums increased by 101.7% from 2021 to 2022, rising to GBP67.34.
- The number of claims made increased by 147.9% to 362,289 in 2022. Claims related to medical expenses increased by 234.8% in 2022.
- Munich Re was the largest travel insurer by GWP in 2022 with a 31.4% share of the market. Munich Re also underwrote the largest number of contracts, accounting for 16% of the market in 2022.
- 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
- Learn how COVID-19 has affected travel insurance
- Discover the impact of the cost-of-living crisis on travel insurance
- Executive Summary
- Market overview
- Key findings
- Critical success factors
- Market Dynamics
- The UK travel insurance market has surged above prepandemic levels
- Table Figure1: GWP in the UK travel insurance market increased above pre-pandemic levels in 2022
- Table UK travel insurance market GWP and annual growth rate, 2018-22
- The cost-of-living crisis is shaping consumer choices in the travel insurance market
- Table UK travel insurance policies written and annual growth rate, 2018-22
- Table Figure2: Despite strong GWP growth, the number of policies written continued to fall in 2022
- Multi-trip policies account for over half of the UK travel insurance market
- Table Figure3: 2022 saw a notable shift away from multi-trip policies
- The average multi-trip premium more than doubled in 2022
- Table Average premiums and percentage change by policy type, 2018-22
- Table Figure4: The average multi-trip policy premium increased by over 100% in 2022
- Premiums increased across all age groups in 2022
- Table Average premiums and percentage change by age group, 2020-22
- The FCA has delayed its travel insurance signposting review
- The number of claims notified increased by 147.9% in 2022
- Table Figure5: The number of claims notified soared by 147.9% in 2022
- Table Figure6: With the impact of COVID-19 waning, cancellations accounted for a smaller proportion of claims in 2022
- The cost of claims increased by 230.6% in 2022
- Table Figure7: The cost of claims soared in 2022 amid the cost-of-living crisis
- The average value of claims paid continued to increase in 2022
- Table Figure8: The average value of claims reached record highs in 2022
- Travel insurance complaints fell significantly for 2021-22
- Table Figure9: The number of complaints plummeted in 2021-22
- Confidence in travel started returning in 2022
- Table Number of visits abroad by region (000s), 2018-22
- Table Figure10: Outbound tourism increased in 2022 for all regions
- Table Number of trips abroad by purpose of travel, 2018-22
- Table Figure11: The end of the COVID-19 pandemic saw holidays once again become the dominant reason for travel
- The influence of economic, political, and health events on travel
- Table Figure12: In Q1 2023, unemployment reached its highest level since Q4 2021
- Table Figure13: Inflation peaked in 2022
- Table Figure14: Real weekly earnings turned negative in 2022 as inflation skyrocketed
- Travel became more expensive throughout 2022, driven by a weak pound
- Table Figure15: The pound has started to recover against the US dollar in 2023
- Consumers are less likely to purchase travel insurance for domestic holidays
- Table Figure16: Consumers are less likely to purchase travel insurance for domestic trips
- The UK's GHIC can create opportunities for insurers
- The Russia/Ukraine conflict has affected travel insurance
- The UK travel insurance market has surged above prepandemic levels
- The Structure of the UK Travel Insurance Market
- Munich Re remains the largest underwriter in the market by premiums
- Table Figure17: Great Lakes Munich Re Group is the dominant underwriter by travel insurance premiums
- Munich Re underwrote the largest number of policies in 2022
- Table Figure18: Great Lakes Munich Re Group underwrote the largest share of contracts sold in 2022
- PCWs became the leading channel for travel insurance in 2022
- Table Admiral's annual travel insurance coverage, 2022
- Table Staysure's annual travel insurance coverage, 2022
- Table Nationwide annual travel insurance coverage, 2022
- Airbnb offers embedded travel insurance
- Table Figure19: Airbnb offers embedded travel insurance
- Munich Re remains the largest underwriter in the market by premiums
- The Market Going Forward
- The travel insurance market is set to increase to GBP703.5 million by 2027
- Table Figure20: Travel insurance growth is set to moderate after a strong 2022
- Technological opportunities in the market
- Youngers consumers are more likely to purchase parametric travel insurance
- Table Figure21: Younger consumers are more willing to purchase parametric travel insurance
- Travel insurers are beginning to offer insurance against extreme weather
- The travel insurance market is set to increase to GBP703.5 million by 2027
- Appendix
- Abbreviations, acronyms, and initialisms
- Methodology
- Table Figure22: Forecasting methodology
- Secondary sources
- Further reading
- About GlobalData
- Contact Us
Research Assistance
Download our eBook: How to Succeed Using Market Research
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook