2024
9
UK Travel Insurance Market Report 2024
2024-09-10T08:02:14+00:00
REP1A777979_FE66_4E73_97D1_45D5BC219FC3
2195
175774
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Report
en_GB
Travel insurance demand stabilises post-lockdown Travel insurance continues to expand, but with the post-lockdown surge in travel having slowed, so has growth in premiums. Cover for overseas holidays has remained…
UK
Insurance
simple

UK Travel Insurance Market Report 2024

Travel insurance demand stabilises post-lockdown Travel insurance continues to expand, but with the post-lockdown surge in travel having slowed, so has growth in premiums.

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  1. Executive Summary

    • Opportunities for the UK travel insurance market
    • Recovery in overseas travel provides growing opportunity for insurers…
    • …but brands need to maintain price competitiveness while improving perceptions of value for money
    • Retain existing customers by enhancing customer satisfaction and loyalty
    • Market dynamics and outlook
    • Market size & forecast
    • Market predictions
    • Modest market growth is forecast over the next five years
    • What consumers want and why
    • Single-trip policies are the most popular travel insurance option
    • Specialist insurance companies are the first choice for travel policies
    • Graph 1: types of providers from which travellers purchased travel insurance for their last trip abroad, 2024
    • Price is the key factor in choosing one travel insurance policy over another
    • Room for improvement in consumer perceptions
    • Innovation and marketing
    • Adspend ramps up as travel continues to recover
  2. Market Dynamics

    • Market size
    • Post-pandemic growth in travel premiums was consolidated in 2023…
    • …but the rate of growth has slowed
    • Market forecast
    • Modest market growth is forecast over the next five years
    • Price sensitivity is expected to limit premium rises
    • Market segmentation
    • Shifting travel habits benefit single-trip policies…
    • Graph 2: number of travel insurance policies written, by policy type, 2023
    • …but multi-trip policies remain dominant in volume terms
    • Travel insurance premiums
    • Post-pandemic shifts in travel insurance premiums
    • Reduction in the average cost of travel insurance premiums in 2023
    • Claims costs incurred
    • Travel insurance claims costs rose again in 2023
    • Medical expenses have exceeded pre-pandemic levels
    • Macro-economic factors
    • Insurers need to reaffirm the need for insurance as costs remain front-of-mind
    • Graph 3: CPI inflation rate, 2021-24
    • Travel insurers are poised to benefit from improved financial health and increased confidence
    • Graph 4: recent and planned financial activity, 2024
    • Regulatory and legislative changes
    • Consumer Duty emphasises delivering good outcomes for consumers
    • FCA disclosed findings from a review of travel insurance signposting rules
  3. What Consumers Want and Why

    • Travel activity
    • Most consumers went on holiday in the last year…
    • Graph 5: trips in the last 12 months, 2024
    • …with affluent individuals showing a greater propensity for travel
    • Graph 6: trips taken in the last 12 months, by financial situation, 2024
    • Travel insurance ownership
    • Travel insurance is a default purchase for overseas holidaymakers
    • Graph 7: proportion of travellers who bought travel insurance for their last trip abroad, 2024
    • Single-trip policies are the most popular option
    • Consistent growth in annual multi-trip policies with age
    • Graph 8: proportion of travellers who bought an annual multi-trip policy for their last trip abroad, by age, 2024
    • Financially strained consumers are more likely to travel without insurance
    • Graph 9: proportion of travellers who bought travel insurance for their last trip abroad, by financial situation, 2024
    • Insurers need to continually reinforce the value of cover for each trip
    • Graph 10: likelihood of taking out a new travel insurance policy for a holiday in the next 12 months (either in the UK or abroad) – NET, 2024
    • Retain existing customers by enhancing satisfaction and loyalty
    • Travel insurance provider used for last trip
    • Specialist insurance companies are the first choice for travel policies…
    • Graph 11: types of travel insurance providers travellers used for their last trip abroad, 2024
    • …but younger groups are more open to alternative brands
    • Graph 12: types of travel insurance providers travellers used for their last trip abroad, by age, 2024
    • Opportunities for retailers to cross-sell
    • Factors influencing choice of policy
    • Travel insurance customers are highly cost-conscious…
    • Graph 13: key factors consumers consider when choosing one travel insurance policy over another, 2024
    • …but insurers need to go beyond competitive pricing to stand out
    • Harness customer reviews to build trust…
    • …and offer added value for those seeking non-standard cover
    • Attitudes towards travel insurance
    • Consider point of sale to capitalise on consumers’ preference for buying insurance early
    • Graph 14: attitudes towards travel and travel insurance, 2024
    • Maintaining peace of mind is central in marketing material
    • Graph 15: “I would be worried to go on a trip abroad without travel insurance”, by age, 2024
    • Close perception gaps to boost appeal
  4. Innovation and Marketing Trends

    • Key players overview
    • The travel insurance market distribution models
    • Allianz
    • Aviva
    • AXA
    • Chubb
    • Collinson Group (Astrenska Insurance)
    • Direct Line
    • Munich Re
    • Red Sands
    • Zurich
    • Competitive strategies and launch activity
    • Allianz Partners expands its partnership network
    • Age Co partners with AllClear to launch new travel insurance offer for older travellers
    • NSM Insurance announces acquisition of InsurEVO
    • eurochange partners with Battleface to launch a new travel insurance offering
    • Advertising and marketing activity
    • Adspend ramps up as travel continues to recover
    • Graph 16: total above-the-line, online display and direct mail advertising expenditure on travel insurance, 2019/20-2023/24
    • Staysure is the biggest advertiser in travel insurance
    • Specialist companies are most active in advertising travel insurance
    • Staysure bringing sure back
    • TV dominates travel insurance advertising
    • Graph 17: total above-the-line, online display and direct advertising expenditure on travel insurance, by media type, 2020/21-2023/24
    • Goodtogo’s 30-second TV focuses on its coverage of medical conditions and having no upper age limit
    • AllClear guarantees comprehensive travel insurance for all ages, all conditions and all destinations
  5. Brand Research

    • Key brand metrics
    • Tesco Bank enjoys high awareness and usage…
    • …while retailer brands also benefit from trust built in other areas of the business
  6. Appendix

    • Market forecast data and methodology
    • Forecast methodology
    • Market forecast and prediction intervals (value)
    • Report scope and definitions
    • Market definition
    • Abbreviations and terms
    • Methodology
    • Consumer research methodology
    • TURF analysis – methodology data
    • Nielsen Ad Intel coverage
Download Report Summary

Cover for overseas holidays has remained a high priority despite the cost of living crisis. However, price-sensitivity is heightened, and insurance customers are increasingly demanding value for money, squeezing margins for insurers. There is an opportunity for the UK travel insurance market to address perceptions of cost and value by being transparent about the costs of insurance against the costs of being uninsured.

UK Travel Insurance Market – Current Landscape

Travel insurance continues to expand, but with the post-lockdown surge in travel having slowed, so has growth in premiums. While very few will opt to travel without any cover, consumers are looking for low prices, which in some cases will mean less comprehensive policies.

While travel insurance is a standard part of the holiday booking process for most travellers, a significant minority hold negative views. Only just over half think travel insurance offers value for money, a quarter don’t trust insurers to pay out on claims, and a third say policies are hard to understand. Providers who can address these issues with an engaging and authentic message are well-placed to succeed.

Just under a fifth of under-45s say the availability of additional cover, for example insuring them for participating in winter sports, would be a factor in choosing a travel insurance policy. Insurers can use marketing to position cover as a ticket to holiday thrills and, ultimately, maximise spend on cover.

UK Travel Insurance – Market Statistics

  • UK travel insurance market size: The UK travel insurance market grew to £895 million in 2023.
  • Travel insurance UK consumer attitudes: Almost a quarter of UK consumers think that travel insurance doesn’t offer value for money.
  • UK travel insurance consumer habits: Almost half of UK consumers consider the lowest price as a key factor when choosing one travel insurance policy over another.

UK Travel Insurance Market Report – What’s Inside?

Key Topics Analysed in the Report

  • The size of the travel insurance market and forecast for the next five years.
  • Regulatory and legislative changes in the market.
  • Use of travel insurance for trips taken in the last 12 months, and expected use in the year ahead.
  • Travel insurance provider used for the last trip.
  • Key purchase drivers when choosing a travel insurance policy.
  • Consumer attitudes towards travel insurance.
  • Latest developments in innovation and marketing trends, including competitive strategies, launch activity and advertising, and brand research.

Report Scope

The focus of this report is the travel insurance market. Travel insurance covers a range of risks associated with travel, notably cancellation, curtailment, medical expenses, loss or theft of personal possessions, personal liability and legal expenses. Many policies come with optional extras such as baggage and winter sports cover.

There are three main types:

  • A single-trip policy covers a single trip or holiday abroad, usually for the duration of between one and 31 days.
  • An annual multi-trip policy provides cover for multiple holidays taken during the course of the year for the price of one premium, although there may be a limit on the number of days spent per trip.
  • A long-term policy provides cover for those taking an extended trip abroad. Cover usually lasts for up to 18 months. This category includes insurance for backpackers and gap year students.

Specialist policies are also available, such as those designed for customers over a particular age or with pre-existing medical conditions.

Meet the Expert Behind the Analysis

This report was written by Saltanat Kuermannal, Mintel’s Financial Services Analyst. Prior to joining Mintel, Saltanat has worked as a consultant in the real estate sector. She has a PhD in Development Studies with trained backgrounds in Anthropology and International Politics.

Consumers understand the importance of travel cover, but providers still need to reinforce the value for money offered by policies.

Saltanat Kuermannal, Financial Services AnalystSaltanat Kuermannal
Financial Services Analyst

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