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

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

Summary

The UK travel insurance market is recovering after being hit extremely hard by COVID-19, with gross written premiums (GWP) declining by 30.1% in 2021. In 2021, the average premium for single-trip policies was more expensive than multi-trip for the first time since 2015. We forecast GWP to rise by 37.8% to GBP492 million in 2022; however, this will remain well below the GBP624 million recorded in pre-pandemic 2019. Future growth in the travel insurance market will to some extent be a recovery from losses inflicted by the pandemic, as well as being partly driven by consumers being more cautious when traveling abroad. As a result, we expect the penetration rate of travelers purchasing insurance to rise.

This report analyzes the UK travel insurance market, including drivers of uptake. It examines the claims landscape in 2021, as well as upcoming regulatory changes within the insurance space. Incumbent competitors are analyzed and compared, along with newcomers and insurtechs. The report also examines future impacts in the market, including inflation as well as emerging technologies such as artificial intelligence and blockchain.

ScopeUK travel insurance GWP is set to record a compound annual growth rate (CAGR) of 7.1% to reach GBP503.1 million by 2026f.Claims declined by 57.4% in 2021 as fewer people traveled, falling to GBP106.5 million as a result. This figure is expected to increase significantly in 2022 as consumers look for more comprehensive policies, which means consumers will be covered for more potential risks.The pandemic has driven an increase in staycations, which looks set to continue as a result of the cost-of-living crisis. While individuals can now travel abroad, doing so is not always straightforward. This means insurers will need to reach out to people traveling within the UK and demonstrate that travel insurance can still be worthwhile.Reasons to BuyExamine the size of the travel insurance marketIdentify who the key players are and what products they offerDiscover GlobalData’s forecasts for the future of the travel insurance marketLearn how COVID-19 has impacted travel insuranceDiscover the impact that the cost-of-living crisis will have on the travel space