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