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United Kingdom (UK) Travel Insurance Market Size, Trends, Competitor Dynamics and Opportunities

Publisher GlobalData
Published Nov 30, 2022
Length 44 Pages
SKU # GBDT17577189

Description

United Kingdom (UK) Travel Insurance Market Size, Trends, Competitor Dynamics and Opportunities

Summary

The UK travel insurance market is recovering after being hit extremely hard by COVID-19, with gross written premiums (GWP) declining by 30.1% in 2021. In 2021, the average premium for single-trip policies was more expensive than multi-trip for the first time since 2015. We forecast GWP to rise by 37.8% to GBP492 million in 2022; however, this will remain well below the GBP624 million recorded in pre-pandemic 2019. Future growth in the travel insurance market will to some extent be a recovery from losses inflicted by the pandemic, as well as being partly driven by consumers being more cautious when traveling abroad. As a result, we expect the penetration rate of travelers purchasing insurance to rise.

This report analyzes the UK travel insurance market, including drivers of uptake. It examines the claims landscape in 2021, as well as upcoming regulatory changes within the insurance space. Incumbent competitors are analyzed and compared, along with newcomers and insurtechs. The report also examines future impacts in the market, including inflation as well as emerging technologies such as artificial intelligence and blockchain.

Scope
  • UK travel insurance GWP is set to record a compound annual growth rate (CAGR) of 7.1% to reach GBP503.1 million by 2026f.
  • Claims declined by 57.4% in 2021 as fewer people traveled, falling to GBP106.5 million as a result. This figure is expected to increase significantly in 2022 as consumers look for more comprehensive policies, which means consumers will be covered for more potential risks.
  • The pandemic has driven an increase in staycations, which looks set to continue as a result of the cost-of-living crisis. While individuals can now travel abroad, doing so is not always straightforward. This means insurers will need to reach out to people traveling within the UK and demonstrate that travel insurance can still be worthwhile.
Reasons to Buy
  • Examine the size of the travel insurance market
  • Identify who the key players are and what products they offer
  • Discover GlobalData’s forecasts for the future of the travel insurance market
  • Learn how COVID-19 has impacted travel insurance
  • Discover the impact that the cost-of-living crisis will have on the travel space

Table of Contents

44 Pages
    • Market overview
    • Key findings
    • Critical success factors
    • The UK travel insurance market contracted to a record low in 2021
    • The number of single-trip policies written experienced the greatest contraction in 2021
    • Multi-trip policies accounted for 90.0% of the market in 2021
    • The average single-trip premium rose by 77.0% owing to an increased number of claims
    • Premiums decreased across most age groups in 2021
    • The FCA has introduced mandatory travel insurance signposting rules
    • The number of travel insurance claims fell by 69.5% in 2021
    • The cost of claims fell by 57.4% in 2021
    • The average value of claims paid increased by 40% in 2021
    • Travel insurance complaints increased, partly due to a lack of understanding around coverage
    • Fewer consumers traveled abroad in 2021
    • The impact of economic, sociopolitical, and health events on travel
    • A lower exchange rate will make travel more expensive for UK citizens
    • The cost-of-living crisis will impact travel habits
    • Despite Brexit, UK citizens will still be able to access medical care in the EU
    • Insurers must target domestic holidaymakers more effectively
    • Munich Re is the largest underwriter in the market by premiums
    • U K Insurance underwrote the highest number of policies
    • Nationwide sold the largest number of travel insurance policies
    • Chubb launched Pay As You Roam travel insurance
    • Travel insurers included specific COVID-19 features for new travel policies in 2021
    • Embedded insurance can benefit the travel insurance industry
    • The trend towards digitalization has been accelerated by the COVID-19 pandemic
    • The travel insurance market is set to recover to reach GBP503.1 million by 2026f
    • Technological opportunities in the market
    • AI can help prevent fraudulent claims
    • Abbreviations and acronyms
    • Methodology
    • Secondary sources
    • Further reading
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