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

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.

ScopeMulti-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 BuyExamine the size of the UK travel insurance marketIdentify who the key players are and what they offerDiscover GlobalData’s forecasts for the future of the UK travel insurance marketLearn how COVID-19 has affected travel insuranceDiscover the impact of the cost-of-living crisis on travel insurance