Market Research Logo

UK Travel Insurance: Market Dynamics & Opportunities 2018

UK Travel Insurance: Market Dynamics & Opportunities 2018

Summary

UK Travel Insurance: Market Dynamics & Opportunities 2018, report provides in-depth analysis of the UK travel insurance market. It looks at market size and profitability, as well as changes in premiums, claims, travel trends, regulation, and opportunities. It provides a thorough overview of the market along with future forecasts.

The UK travel insurance market experienced an increase of 0.9% in the number of policies being written in 2017, which resulted in GWP rising by a much more significant 7.9% to £614.3m due to average premiums rising. The number of UK residents going abroad without holding travel insurance increased again in 2017, mainly due to more trips to Europe being taken. Consumers either feel exposed to a lower level of risk in Europe or are overly reliant on their European Health Insurance Card. The cost of claims for travel insurers increased by 6.3% in 2017 to £510m, meaning it was outstripped by premium growth.

Scope

  • Trips to Europe increased in 2017, at the expense of longer-haul flights (particularly to North America).
  • Marginalized consumers are set to receive help accessing the market following a Financial Conduct Authority review.
  • The UK travel insurance market is forecast to be worth £634.0m in 2023.
Reasons to buy
  • Benchmark yourself against the rest of the market.
  • Ensure you remain competitive as new innovations and insurance models begin to enter the market.
  • Be prepared for how travel trends and the UK travel insurance market will be impacted by socio-political and economic factors over the next few years.


1. EXECUTIVE SUMMARY
1.1. Market summary
1.2. Key findings
1.3. Critical success factors
2. MARKET DYNAMICS
2.1. Introduction
2.2. UK travel insurance market GWP picked up in 2017
2.2.1. The number of policies was driven up by single trip growth
2.2.2. The trend of multi-trip policies increasing their share of market GWP has ended
2.2.3. Average travel insurance premiums increased
2.2.4. The influence of age on premium prices
2.2.5. Insurers must do more for cancer sufferers and other long-term conditions
2.3. Travel insurance and added-value accounts
2.3.1. Added-value accounts remain popular with travelers
2.3.2. The disadvantages of added-value account travel insurance policies
2.3.3. Travel insurance complaints remain high, despite a slight fall
2.4. Travel trends among UK residents
2.4.1. Travel abroad by UK residents continued to grow in 2017
2.4.2. Holidays remain the main purpose of traveling abroad
2.5. The influence of economic, socio-political, and health events on travel
2.5.1. The state of the UK economy has an impact on travel
2.5.2. The influence of exchange rates on trips abroad by UK residents
2.5.3. Social unrest in travel destinations
2.5.4. Air strikes and Monarch’s collapse pose further problems for insurers
2.6. Travel insurance claims
2.6.1. The number of travel insurance claims continues to fall
2.6.2. Medical expenses outweigh cancelations in terms of claims costs
2.6.3. Changes in booking culture could reduce the cost of cancelations
2.6.4. The withdrawal of EHIC will provide a boost to insurers
3. COMPETITOR DYNAMICS
3.1. AXA leads the way in the travel insurance space
3.1.1. Key affinity changes occurred in 2017
3.1.2. Challenger banks are entering the market
3.1.3. AXA is creating partnerships with third-party booking websites
3.1.4. Co-op Insurance kicks off cashless cover among mainstream insurers
4. THE MARKET GOING FORWARD
4.1. Market forecasts
4.1.1. Current market forecast: UK travel insurance will experience modest growth
4.1.2. Market forecast: smooth Brexit process
4.1.3. Market forecast: hard Brexit process
4.2. Uncertainty in the UK economy
4.2.1. How the UK economy copes with Brexit is key for the travel market
4.3. Technology will influence the travel insurance market
4.3.1. Wearable tech could play a role in prevention
4.3.2. Virtual GP services could become commonplace
4.3.3. The development of flight delay policies
4.3.4. PassportCard claims to have created the world’s first real-time travel insurance
4.3.5. The concept of a travel insurance marketplace has emerged
5. APPENDIX
5.1. Abbreviations and acronyms
5.2. Bibliography
5.3. Further reading
List of Tables
Table 1: UK travel insurance market GWP and annual growth rate, 2013-17
Table 2: Number of travel insurance policies written, 2011-17
Table 3: Share of UK travel insurance GWP by policy type, 2013-17
Table 4: Average premiums and percentage change by policy type, 2013 -17
Table 5: Average premium prices by demographic, 2015-17
Table 6: Total number of outbound UK visitors by destination (000s), 2012-17
Table 7: Number of overseas visits by purpose (000s), 2014-17
Table 8: Historical exchange rates relative to £1, 2013-17
List of Figures
Figure 1: The UK travel insurance market recovered in 2017
Figure 2: The number of policies rose in 2017, driven by growth in single trips
Figure 3: Single-trip policies increased their share after two years of multi growing
Figure 4: Multi-trip policies have been more expensive than single trip since 2016
Figure 5: Outbound tourism was up everywhere except North America in 2017
Figure 6: Holidays remain the most popular reason for traveling
Figure 7: The UK economy saw steady growth in 2017
Figure 8: Real wages are falling behind nominal wages as inflation outstrips wage growth
Figure 9: The value of the pound continues to fluctuate
Figure 10: Tourism in Western Europe recovers faster after terror attacks
Figure 11: Total claims rose as every category recorded an increase
Figure 12: Cancelations remain the leading reason for insurance claims
Figure 13: Cancelation claims costs grew sharply in 2017
Figure 14: Revolut offers GPS-based travel insurance
Figure 15: Travel GWP will stutter in 2018 and 2020, before recording significant growth in 2022 and 2023
Figure 16: GlobalData forecast model
Figure 17: App in the Air provides a full flight management service
Figure 18: Fizzy provides automatic compensation
Figure 19: PassportCard means consumers do not need to make upfront payments
Figure 20: TransferTravel.com allows customers who are unable to travel to sell their flight and hotel bookings

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

Share this report