2023
9
UK Travel Insurance Market Report 2023
2023-07-21T04:05:07+01:00
OX1156463
2195
165162
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Report
en_GB
“The travel insurance market has bounced back from the pandemic-induced dip, and the outlook is positive, as a high appetite for travel will support the growth of the market. Amid…

UK Travel Insurance Market Report 2023

£ 2,195 (Excl.Tax)

Description

Stay ahead of the curve and future-proof your business with Mintel’s UK Travel Insurance Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest travel insurance industry trends and consumer behaviours affecting your business. Get a 360° view of the travel insurance market including market size, share and forecasted growth to help you align your business strategy with the needs of your audience.

Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.

Topics Analysed in this Report

  • Analysis of the uptake of travel insurance for holidays overseas.
  • Intentions to purchase travel insurance for future travel.
  • Preferred channels to arrange and purchase travel insurance.
  • Analysis of what drives satisfaction within the travel insurance market.
  • Attitudes towards travel and travel insurance market.

Travel Insurance Market Outlook

The value of the travel insurance market is expected to continue to increase. A high appetite for travel and premium growth will support this rise. However, inflation and the ongoing cost of living crisis are placing increased pressure on household budgets, causing consumers to be more cautious with their spending, particularly when it comes to discretionary expenses like holidays.

  • Travel insurance market size: Mintel expects gross written premiums forecast to rise by 8.5% to £985m in 2023.

Travel Insurance Market Trends and Opportunities

Single-trip policies remain the preferred option

Over a third of holidaymakers plan to take out a single-trip policy, as this product offers a quick and easy way for people to ensure they have sufficient cover for an upcoming holiday. Brands can capitalise on this preference by leading with communication on how this policy is a financially viable option to purchase insurance coverage for a specific trip, rather than investing in an annual policy, particularly if they are unsure about their travel plans.

  • Travel insurance industry opportunity: 33% of travellers plan to buy a single-trip policy for their next trip abroad.

Consumers appreciate the importance of insurance as costs rise

Pressure on household finances makes it more challenging for people to afford to holidays, but tighter budgets also mean that unexpected expenses during travel also become more difficult for some people to manage. Many consumers are also drawing this conclusion about the impact of the challenging economic situation.

  • Travel insurance industry opportunity: 74% of holidaymakers agree that the cost of living crisis has made travel insurance more important.

To learn how to connect with your audience, purchase our full UK Travel Insurance Market Report 2023.  Discover lucrative innovation opportunities to help your business grow during times of financial uncertainty.

Leading Brands in the Travel Insurance Market

Aviva, Allianz, AXA, Chubb, Collision Group, Direct Line, Zurich, Red Sands, Munich Re.

Additional Features Included with Your Purchase

  • Interactive Data Book: This gives you unlimited access to a consumer confidence tracker that is segmented into 25 different demographic categories.
  • Different Digital Formats: PDF for conveniently sharing with your team, PowerPoint for quickly including in your presentation, as well as Word and Excel.
  • Mintel’s Clients Portal: Our portal offers instant access to actionable analysis and trends pieces relevant to your industry that are published almost daily. You can also browse for more market research reports.

Expert Insights from a Finance Analyst

This report, written by Stefania Apostol, a leading finance analyst, delivers in-depth commentary and analysis to highlight trends in the travel insurance market and add expert context to the numbers.

The travel insurance market has bounced back from the pandemic-induced dip, and the outlook is positive, as a high appetite for travel will support the growth of the market. Amid the cost of living crisis, consumers arguably have more reasons to ensure they have adequate financial protection from losses. However, the income squeeze is also driving a worrying number of travellers to holiday while uninsured. Lower-priced policies providing essential coverage could serve as an entry point for hesitant travellers who struggle to afford travel insurance.”

Stefania Apostol - Financial Services Analyst
Stefania Apostol
Senior Financial Services Analyst

Table of Contents

  1. Overview

      • Key issues covered in this Report
        • Products covered in this Report
        • Executive Summary

            • The five-year outlook for travel insurance
              • Figure 1: Category outlook, 2023-27
            • The market
              • Travel insurance recovered strongly after pandemic drop
                • Figure 2: Total value of travel insurance policies sold, by gross written premium, 2018-22
              • Growth is forecast to remain positive over the next five years
                • Figure 3: Market forecast for travel insurance, 2022-27
              • Companies and brands
                • Travel insurance providers are forging partnerships post-pandemic
                  • The consumer
                    • Travel activity recovered…
                      • …and appetite for travel remains high
                        • Figure 4: Travel intentions over the next 12 months, 2022-23
                      • The majority of holidaymakers had insurance for their last trip
                        • Figure 5: Cover for last trip, 2023
                      • Single trip policies remain the preferred option for cover
                        • Figure 6: Intentions to buy travel insurance, 2023
                      • Satisfaction with the ease of arranging the policy is very high…
                        • …but price is an issue for some consumers
                          • Figure 7: Satisfaction with travel insurance policy, 2023
                        • Consumers appreciate the importance of insurance as costs rise
                          • Figure 8: Attitudes towards travel and travel insurance, 2023
                      • Issues and Insights

                        • The cost of living crisis highlights the importance of travel insurance…
                          • …while driving some consumers to travel uninsured
                          • Market Size and Performance

                            • Travel insurance recovered strongly after pandemic drop
                              • Figure 9: Total value of travel insurance policies sold, by gross written premium, 2018-22
                          • Market Forecast

                            • The five-year outlook for travel insurance
                              • Figure 10: Category outlook, 2023-27
                            • Growth is forecast to remain positive over the next five years
                              • Figure 11: Market forecast for travel insurance, 2022-27
                              • Figure 12: Market size and forecast for travel insurance, 2017-27
                            • Learnings from the last income squeeze
                              • Figure 13: Travel insurance gross written premiums, 2006-11
                            • Forecast methodology
                            • Market Segmentation

                              • Single-trip policies grew strongly in 2022
                                • …but multi-trip policies continued to decline
                                  • Figure 14: Segmentation of travel insurance market, by policy type. ABI Members only, 2018-22
                              • Travel Insurance Premiums

                                • Average premiums for travel insurance experienced notable shifts
                                  • Figure 15: Average travel insurance premium, by policy type, ABI Members only, 2015-22
                                • Older travellers see lower increases in average premiums
                                  • Figure 16: Average travel insurance premium, by age categories, ABI Members only, 2020-21
                                  • Figure 17: Average travel insurance premium, average claim value and claims frequency, by age category, 2019-22
                              • Claims Costs Incurred

                                • Volume and value of claims rose in 2022…
                                  • Figure 18: Total volume and value of travel insurance claims incurred (ABI Members only), 2018-22
                                • …driven by medical expenses…
                                  • Figure 19: Volume and value of medical expenses claims incurred on travel insurance policies (ABI Members only), 2018-22
                                • …and cancellation claims
                                  • Figure 20: Total volume and value of travel insurance claims incurred, by category (ABI Members only), 2018-22
                              • Market Drivers

                                • Overseas holidays rebounded strongly in 2022…
                                  • Figure 21: Estimated number of overseas visits by UK residents, by region of visit, 2018-22
                                  • Figure 22: Estimated number of overseas visits by UK residents, by purpose of visit, 2018-22
                                • …but the cost of living crisis will slow down recovery
                                  • Inflation is expected to fall…
                                    • Figure 23: CPI and CPIH, 12-month rates, 2016-23
                                  • …but most people are feeling the effects of higher prices
                                    • Figure 24: Issues faced in the last two months, 2023
                                  • Consumers’ financial wellbeing has fallen from the highs of 2021
                                    • Figure 25: Household financial wellbeing index, 2016-23
                                • Regulatory and Legislative Changes

                                  • FCA introduces new Consumer Duty rules
                                    • FCA postpones its review of signposting rules for travel insurance
                                    • Key Player Overview

                                      • The travel insurance market is diverse
                                        • Allianz
                                          • Aviva
                                            • AXA
                                              • Chubb
                                                • Collinson Group (Astrenska Insurance)
                                                  • Direct Line
                                                    • Munich Re
                                                      • Red Sands
                                                        • Zurich
                                                        • Competitive Strategies and Launch Activity

                                                          • Travel insurance providers are forging partnerships post-pandemic
                                                            • Allianz Partners extends its reach
                                                              • AXA Partners also active in expanding its partnerships
                                                                • Aviva extends its partnership with TSB
                                                                  • Ageas introduces D2C travel insurance
                                                                    • Embedded travel insurance gains traction
                                                                      • Admiral launches first embedded insurance offering
                                                                        • Airbnb partners with Europ Assistance
                                                                          • Providers continue to enhance the consumer experience through digital channels
                                                                            • Zurich launches concierge service for claimants
                                                                            • Advertising and Marketing Activity

                                                                              • ATL adspend recovers after pandemic drop
                                                                                • Figure 26: Total above-the-line, online display and direct mail advertising expenditure on travel insurance, 2019/20-2022/23
                                                                              • Travel insurance specialists dominate adspend
                                                                                • Go.Compare boosts adspend on travel insurance
                                                                                  • Figure 27: Total above-the-line, online display and direct advertising expenditure on travel insurance, by top 6 advertisers, 2020/21-2022/23
                                                                                • TV accounts for almost a third of adspend…
                                                                                  • …but direct mail gains traction
                                                                                    • Figure 28: Total above-the-line, online display and direct advertising expenditure on travel insurance, by media type, 2020/21-2022/23
                                                                                  • Nielsen Ad Intel coverage
                                                                                  • Brand Research

                                                                                      • Brand map
                                                                                        • Figure 29: Attitudes towards and usage of selected brands, 2023
                                                                                      • Key brand metrics
                                                                                        • Figure 30: Key metrics for selected brands, 2023
                                                                                      • Brand attitudes: Churchill stands out as a brand with a good reputation
                                                                                        • Figure 31: Attitudes, by brand, 2023
                                                                                      • Brand personality: LV= is perceived as accessible
                                                                                        • Figure 32: Brand personality – macro image, 2023
                                                                                      • Saga is seen as reassuring
                                                                                        • Figure 33: Brand personality – micro image, 2023
                                                                                      • Brand analysis
                                                                                        • Churchill stands out as a brand with a good reputation
                                                                                          • LV= is seen as trustworthy and accessible
                                                                                            • Saga enjoys high awareness amongst older demographics
                                                                                              • Allianz Assistance is skewed towards younger generations
                                                                                                • Staysure has a positive image among users
                                                                                                  • InsureandGo and Puffin Insurance lack awareness
                                                                                                  • Travel Activity

                                                                                                    • Travel activity recovered…
                                                                                                      • Figure 34: Travel activity in the past 12 months, 2022-23
                                                                                                    • …but not everyone could enjoy a trip away
                                                                                                      • Figure 35: Travel activity in the past 12 months, by financial situation, 2023
                                                                                                    • Appetite for travel remains high
                                                                                                      • Figure 36: Travel intentions over the next 12 months, 2022-23
                                                                                                    • Affluent people are more likely to say they will go on a holiday
                                                                                                      • Figure 37: Travel intentions over the next 12 months, by financial situation, 2023
                                                                                                  • Insurance Cover for Last Trip

                                                                                                    • The majority of holidaymakers had insurance for their last trip
                                                                                                      • Single-trip policies were the most popular
                                                                                                        • 18% of respondents had travel insurance with a packaged account
                                                                                                          • Younger people were more likely to go on a holiday without insurance……
                                                                                                            • …and affordability constraints also influenced people to forgo insurance
                                                                                                              • Figure 38: Cover for last trip, 2023
                                                                                                          • Insurance Cover for Future Trip

                                                                                                            • A third of holiday goers plan to buy a single-trip policy
                                                                                                              • Figure 39: Intentions to buy travel insurance, 2023
                                                                                                            • Hard-pressed consumers are more likely to go on holiday without insurance
                                                                                                              • Figure 40: Intentions to not buy travel insurance, by financial situation, 2023
                                                                                                            • Holiday-goers prefer to stick with what they know
                                                                                                              • Figure 41: Intentions to buy travel insurance, by cover for last trip, 2023
                                                                                                          • Travel Insurance Satisfaction

                                                                                                            • Overall satisfaction is high
                                                                                                              • Figure 42: Overall satisfaction with travel insurance policy, 2023
                                                                                                            • Satisfaction with the ease of arranging the policy is very high…
                                                                                                              • …but price is an issue for some consumers
                                                                                                                • Figure 43: Satisfaction with travel insurance policy, 2023
                                                                                                            • Key Driver Analysis for Travel Insurance

                                                                                                                • Foster clarity of language in communication to boost satisfaction
                                                                                                                  • Scope to improve the claims experience
                                                                                                                    • Figure 44: Key drivers of overall satisfaction with Travel Insurers, March 2023
                                                                                                                • Preferred Channels to Arrange Travel Insurance

                                                                                                                  • Most travel insurance is arranged online…
                                                                                                                    • …but traditional channels remain important
                                                                                                                      • Figure 45: Preferred channels to arrange travel insurance, 2023
                                                                                                                  • Attitudes towards Travel and Travel Insurance

                                                                                                                    • The cost of living crisis puts pressure on travel plans…
                                                                                                                      • …but highlights the importance of travel insurance
                                                                                                                        • Most consumers are keen to arrange insurance as soon as possible
                                                                                                                          • Figure 46: Attitudes towards travel and travel insurance, 2023
                                                                                                                      • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                          • Abbreviations
                                                                                                                            • Consumer research methodology
                                                                                                                              • Key Driver Analysis Methodology
                                                                                                                                • Interpretation of results
                                                                                                                                  • Figure 47: Overall satisfaction with travel insurance – key driver output, March 2023
                                                                                                                                  • Figure 48: Satisfaction with travel insurance, March 2023
                                                                                                                              • Appendix – Forecast Methodology

                                                                                                                                • Market forecast and prediction intervals
                                                                                                                                  • Figure 49: Market forecast for travel insurance, 2023-27
                                                                                                                                • Market drivers and assumptions
                                                                                                                                  • Forecast methodology

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