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

Publisher GlobalData
Published Sep 26, 2023
Length 44 Pages
SKU # GBDT18262534

Description

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.
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
  • Learn how COVID-19 has affected travel insurance
  • Discover the impact of the cost-of-living crisis on travel insurance

Table of Contents

44 Pages
    • Market overview
    • Key findings
    • Critical success factors
    • The UK travel insurance market has surged above prepandemic levels
    • The cost-of-living crisis is shaping consumer choices in the travel insurance market
    • Multi-trip policies account for over half of the UK travel insurance market
    • The average multi-trip premium more than doubled in 2022
    • Premiums increased across all age groups in 2022
    • The FCA has delayed its travel insurance signposting review
    • The number of claims notified increased by 147.9% in 2022
    • The cost of claims increased by 230.6% in 2022
    • The average value of claims paid continued to increase in 2022
    • Travel insurance complaints fell significantly for 2021-22
    • Confidence in travel started returning in 2022
    • The influence of economic, political, and health events on travel
    • Travel became more expensive throughout 2022, driven by a weak pound
    • Consumers are less likely to purchase travel insurance for domestic holidays
    • The UK's GHIC can create opportunities for insurers
    • The Russia/Ukraine conflict has affected travel insurance
    • Munich Re remains the largest underwriter in the market by premiums
    • Munich Re underwrote the largest number of policies in 2022
    • PCWs became the leading channel for travel insurance in 2022
    • Airbnb offers embedded travel insurance
    • The travel insurance market is set to increase to GBP703.5 million by 2027
    • Technological opportunities in the market
    • Youngers consumers are more likely to purchase parametric travel insurance
    • Travel insurers are beginning to offer insurance against extreme weather
    • Abbreviations, acronyms, and initialisms
    • Methodology
    • Secondary sources
    • Further reading
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