2022
9
UK Travel Insurance Market Report 2022
2022-06-01T04:03:45+01:00
OX1104585
2195
151833
[{"name":"Insurance","url":"https:\/\/store.mintel.com\/industries\/finance\/financial-services\/insurance"}]
Report
en_GB
“The relaxation of international travel restrictions in Q1 2022 is expected to kick-start the recovery of the travel market over the next 12 months and beyond. This will naturally benefit…

UK Travel Insurance Market Report 2022

£ 2,195 (Excl.Tax)

Description

“The relaxation of international travel restrictions in Q1 2022 is expected to kick-start the recovery of the travel market over the next 12 months and beyond. This will naturally benefit travel insurers, who have suffered from reduced opportunities to sell policies during the pandemic. Single-trip policies are set to drive the travel insurance market recovery over the next year, as consumers prioritise one main summer holiday amid inflationary pressures on household budgets.”

– Jennie Bryans, Financial Services Analyst, May 2022

Key issues covered in this Report

  • The current impact of COVID-19 on the travel insurance market, as we enter into the post-pandemic era
  • Future travel insurance intentions
  • Future policy preferences
  • Purchase preferences of consumers
  • Important factors when buying travel insurance
  • Attitudes towards travel insurers and policies

 

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Market context
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for the travel insurance market
      • Figure 1: Category outlook, 2022-26
    • The market
    • Market size and forecast
      • Figure 2: Market size for the travel insurance market, 2016-26
    • Companies and brands
    • Direct Line led market in 2020
      • Figure 3: Market share of the travel insurance market by underwriter/insurance provider, 2020
    • 2021 saw market movement and a decline in GWPs for several insurers
    • Consumers increasingly demanding digital experiences
    • Adspend showing signs of recovery
      • Figure 4: Total above-the line, online display and direct mail advertising expenditure on travel insurance, 2017-22
    • The consumer
    • Travel activity has started to recover
      • Figure 5: Travel activity in the last 12 months, 2022
    • Appetite for international trips increases
      • Figure 6: Travel intentions over the next 12 months, 2022
    • Take-up of travel insurance higher for overseas trips…
      • Figure 7: Likelihood of buying travel insurance for next trip, 2022
    • Single-trip policies prove the most popular option
      • Figure 8: Travel insurance policy type, 2022
    • Consumers are more likely to arrange insurance close to booking
      • Figure 9: Time period for organising travel insurance policy, 2022
    • Online channels are the key points of sale
    • Medical cover and COVID-19 disruption at the forefront of consumers’ minds
      • Figure 10: Important factors when purchasing travel insurance, 2022
    • Price is still a key factor for consumers
      • Figure 11: Attitudes influencing insurance type, 2022
  3. Issues and Insights

    • Quality of cover is of increasing importance; but price is still key
    • Opportunity for insurers to promote domestic travel insurance
    • Spotlight on mental health support for backpackers
  4. Market Size and Performance

    • Travel insurance market decreased by 16% in 2021
      • Figure 12: Total value of travel insurance policies sold, by gross written premium, 2015-21
  5. Market Forecast

    • Travel insurance market boosted by easing restrictions
      • Figure 13: Category outlook, 2022-26
    • Travel insurance market expected to fully recover by 2025
      • Figure 14: Market forecast for travel insurance, 2021-26
      • Figure 15: Market forecast of gross written premiums for the travel insurance market, 2016-26
    • Market drivers and assumptions
      • Figure 16: Key drivers affecting Mintel’s market forecast, 2016-26
    • Forecast methodology
  6. Market Segmentation

    • Single-trip policies declined sharply in 2020
    • Multi-trip insurance policies hold up well
      • Figure 17: Segmentation of travel insurance market, by policy type, ABI members only, 2016-20
  7. Travel Insurance Premiums

    • Average premiums for multi-trips rose modestly in 2020…
    • …whilst average premiums for single-trips declined sharply
      • Figure 18: Average travel insurance premium, by policy type, ABI members only, 2010-20
    • Premium prices remain volatile between age groups
      • Figure 19: Average travel insurance premium, by age categories, 2019 and 2020
  8. Claims Costs Incurred

    • Value of claims fell by a third in 2020…
      • Figure 20: Total volume and value of travel insurance claims incurred (ABI members only), 2016-20
    • …driven by a sharp decline in medical expense costs
      • Figure 21: Total volume and value of travel insurance claims incurred, by category (ABI members only), 2016-20
  9. Market Environment – Economic Context

    • Inflationary pressures are mounting…
      • Figure 22: Consumer concerns about household finances, 2021-22
    • The conflict in Ukraine will hurt the UK economy
    • Consumers’ financial wellbeing has slipped from its recent high point…
      • Figure 23: Household financial wellbeing index, 2016-22
  10. Market Environment – Travel Context

    • International travel showing signs of recovery…
      • Figure 24: Visit estimates for overseas travel, Q1 2019 to Q3 2021*
    • …but a full recovery is not expected until 2026
      • Figure 25: Forecast volume of overseas holidays taken by UK residents, 2016-26 (taken from Holiday Review – UK, 2022)
    • Staycations boom amid international travel restrictions and uncertainty
      • Figure 26: Volume and value* of domestic holidays taken by British residents, 2015-21 (Taken from Domestic Tourism – UK, 2022)
  11. Regulatory and Legislative Changes

    • FCA warning of new risks resulting from COVID-19
    • New rules for pre-existing medical conditions
  12. Market Share

    • Direct Line and AXA had highest share in 2020
      • Figure 27: Market share of the travel insurance market by underwriter/insurance provider, 2020
    • Underwriters, brands and partnerships
      • Figure 28: Leading travel insurance providers and their affinity partners, 2022
    • Market shake-up in 2021 due to Brexit and pandemic
    • Direct Line Group report 30% decline in GWP in 2021
    • Allianz reports a boost in results
    • Zurich reports an increase in profits
    • Collinson GWP decline in 2021, but future looks bright
    • Aviva reports low demand in 2021
    • Staysure increases market presence by purchasing Rock Insurance
  13. Competitive Strategies and Innovation

    • Consumers demanding flexibility and digital experiences
    • Insurers expanding digital offerings
      • Figure 29: Marketing image for Wapp Travel Insurance app
    • Spotlight on mental health support for travellers
    • Nationwide becomes first provider to cut travel insurance from packaged current accounts
    • Airbnb launches into the travel insurance market
    • Ryanair begins to offer insurance cover at point of sale
    • Collinson partnering with travel companies to boost consumer experience
  14. Advertising and Marketing Activity

    • Adspend is beginning to recover
      • Figure 30: Total above-the line, online display and direct mail advertising expenditure on travel insurance, 2017-22
    • Top six spenders account for 96% of ATL adspend
      • Figure 31: Top six travel insurance advertisers (above-the-line, online display and direct mail advertising only), 2019/20 – 2021/22
    • TV advertising ramps up
      • Figure 32: Total above-the line, online display and direct mail advertising expenditure on travel insurance, by media type, 2019/20 – 2021/22
    • Nielsen Ad Intel coverage
  15. Previous Travel Activity

    • Travel activity started to recover…
      • Figure 33: Travel activity in the last 12 months, 2022
    • …but with stark income differences
      • Figure 34: travel activity over the last 12 months, by household income, 2022
  16. Travel Intentions

    • Appetite for international trips increases
      • Figure 35: Travel intentions over the next 12 months, 2022
    • Older people remain more hesitant to long-haul trips
      • Figure 36: Travel intentions for the next 12 months, By age, 2022
    • Increased demand for once in a lifetime holidays
  17. Travel Insurance Take-up

    • Half of travellers likely to purchase travel insurance
      • Figure 37: Likelihood of buying travel insurance for next trip, by likelihood of taking a trip over the next 12 months, 2022
    • An opportunity for insurers to reassure domestic holidaymakers
  18. Type of Insurance Policy

    • Single-trip policies prove the most popular option
      • Figure 38: Travel insurance policy type, 2022
    • Higher demand for long-term policies among Gen Zers
    • 36% are likely to take out cover for pre-existing medical conditions
      • Figure 39: Likelihood of needing a specialist policy to cover any pre-existing medical conditions, 2022
  19. Purchase Preferences

    • Consumers are more likely to arrange insurance close to booking
      • Figure 40: Time period for organising travel insurance policy, 2022
    • Parents keen to organise insurance sooner rather than later
    • Online channels are the key points of sale
      • Figure 41: Method of arranging travel insurance, 2022
    • Key opportunity for travel agents to organise insurance at point of sale
  20. Important Factors when Purchasing Travel Insurance

    • Medical cover and COVID-19 disruption at the forefront of consumers’ minds
      • Figure 42: Important factors when purchasing travel insurance, 2022
    • Cover for natural disasters will become more important
      • Figure 43: Important factors when purchasing travel insurance, by age, 2022
    • Older consumers warier of companies going into administration
  21. Attitudes Influencing Travel Insurance

    • Price is still a key factor for consumers
      • Figure 44: Attitudes influencing insurance type, 2022
    • Reviews are valued by consumers
    • Younger generations think travel insurance is too expensive
  22. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  23. Appendix: Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 45: Market forecast of gross written premiums for the travel insurance market, 2016-2026
    • Market drivers and assumptions
      • Figure 46: Key drivers affecting Mintel’s market forecast, 2015-26
    • Forecast methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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Data

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*databooks not available with UK B2B Industry reports.

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