United Kingdom (UK) Travel Insurance – Market Dynamics and Opportunities 2020

Powered by

All the vital news, analysis, and commentary curated by our industry experts.

This report provides in-depth analysis of the UK travel insurance market. It looks at current and historical market size and profitability, examining changes in premiums and claims. It analyzes the competitive landscape, providing examples of key travel insurance products. The report discusses travel trends and the impact of various socio-political and economic factors, including COVID-19 and Brexit. Forecasts up to 2024 are provided for gross written premiums, and the report also discusses how the market and travel insurance products are likely to change over this period.

COVID-19 will slash the travel insurance market. Gross written premiums (GWP) will erode in 2020, plummeting by almost half compared to £614.2m in 2019. This shock to the market comes after a 12.0% GWP increase in 2019. COVID-19 will exert enormous pressure on travel insurers, as medical- and cancellation-related claims remain an ongoing industry issue, accounting for around 90% of the total cost of claims paid out in 2019. Looking to the future, the travel insurance market will depend massively on the economic recovery following the outbreak of the pandemic. Changing customer behavior given the revocation of the European Health Insurance Card (EHIC) by the end of 2020 will also be a factor, as will the Financial Conduct Authority’s (FCA’s) new rules on signposting for consumers with pre-existing medical conditions (PEMCs). In the short term, travel insurers will be facing financial strains – some flights have resumed but disruption continues.

Scope

– The UK travel insurance market grew in 2019 to reach £614.2m in gross written premiums. However, the outbreak of COVID-19 has compromised travel since then.

– Travel insurance products were temporarily withdrawn from the market at the onset of the pandemic. Having been reintroduced, there is demand for COVID-19 cover among those who still travel.

– Claims costs decreased to an average of £377 but travel insurers face record-high cancellation payouts in 2020.

– Munich Re was the largest travel insurer by GWP in 2019 with a 20.8% share of the market.

Reasons to Buy

– Examine the size of the UK’s travel insurance market.

– Benchmark your company against other competitors.

– Be prepared for customers’ changing attitudes and behaviors regarding travel and insurance as a result of COVID-19 and Brexit.

– Understand the impact of various other trends on the market.

British Airways
Munich Re
U K Insurance
Nationwide
Aviva
InsureandGo
Staysure
The Co-operative Bank
Age Partnership
HSBC
John Lewis
Tesco Bank
HSBC
Thomas Cook
WOW air
Monarch
Primera Air
Flybmi
Flybe
tifgroup
Lloyds Bank
NatWest
Halifax
RNA Seguros de Assistencia
Emirates
flydubai
Virgin Atlantic
Post Office
Saga
Sainsbury’s Bank
ERV
MAPFRE
AllClear
InsureandGo
Virgin Money
Asda
Aviva
AXA
M&S Bank
Direct Line
RBS
Churchill
First Direct
TSB
Lloyds Bank
Bank of Scotland
First Direct
Admiral
Hays Travel
Rock Insurance Group
TUI
LV=
Blue Insurance
Allianz
battleface
Ageas
Starling Bank
Monzo
Revolut
Pluto
Zurich
AIG
Healix
Babylon Health
Push Doctor
Crystalsure
Now GP

Table of Contents

Table of Contents

1. EXECUTIVE SUMMARY

1.1. The travel insurance industry will be hugely impacted by COVID-19

1.2. Key findings

1.3. Critical success factors

2. MARKET DYNAMICS

2.1. The UK travel insurance market returned to growth in 2019

2.2. The number of travel insurance claims dropped by

5.6% in 2019

2.3. Travel insurance and added-value bank accounts

2.4. Travel trends among UK residents

2.5. The influence of economic, sociopolitical, and health events on travel

3. THE STRUCTURE OF THE UK TRAVEL INSURANCE MARKET

3.2. COVID-19 has had a huge impact on the travel insurance market

3.3. Other market developments

4. THE MARKET GOING FORWARD

4.1. The travel insurance market is expected to contract by

58.2% in 2020

4.2. The rise of the staycation could create an opportunityfor insurers

4.3. The influence of Brexit on the future market

4.4. Technological opportunities in the claims process

4.5. Virtual GP services could become commonplace

4.6. Technological opportunities beyond claims

5. APPENDIX

5.1. Abbreviations and acronyms

5.2. Methodology

5.3. Secondary sources

5.4. Further reading

Table

List of Tables

Table 1: UK travel insurance market GWP and annual growth rate, 2015-19

Table 2: Number of travel insurance policies written, 2015-19

Table 3: Average premiums and percentage change by policy type, 2015-19

Table 4: Average premium prices by demographic, 2017-19

Table 5: Number of visits abroad by region (000s), 2015-19

Table 6: Visits abroad by UK residents by purpose of travel(000s), 2015-19

Table 7: Nationwide FlexPlusworldwide travel insurance cover, 2019

Table 8: Aviva’s single and annual coverage, 2019

Table 9: InsureandGo annual trip coverage (Silver), 2019

Table 10: Staysure Basic and Comprehensive coverage limits, 2019

Figures

List of Figures

Figure 1: The UK travel insurance market returned to growth in 2019

Figure 2: An increase in the number of single-trip policies drove growth in 2019

Figure 3: Multi-trip policies continue to dominate the travel insurance market

Figure 4: Single-trip premiums have remained broadly similar in price, while multi-trip premiumshave risen

Figure 5: Cancellations was the only category to experience an increase in claims for 2019

Figure 6: Cancellations and medical-related claims made up almost 68% of notified claims in 2019

Figure 7: Cancellations and medical expenses accounted for 90% of claims costs in 2019

Figure 8: Outbound tourism increased in 2019, except for North America

Figure 9: Spain remainsby far the most popular travel destination for UK travelers

Figure 10: The UK economy continued to grow in 2019

Figure 11: Real wages in the UK continued to stagnate through 2019

Figure 12: The value of the poundhas been unable to make a full recovery since the 2016 EU referendum

Figure 13: Munich Rewas the UK’s leading underwriter by GWP in 2019

Figure 14: U K Insurance underwrote the greatest number of contracts in 2019

Figure 15: The travel insurance market will experience a compound annual growth rateof -11.1% for 2019-24

Figure 16: GlobalData’sforecasting model

Frequently asked questions

United Kingdom (UK) Travel Insurance – Market Dynamics and Opportunities 2020 standard reports
Currency USD
$3,450

Can be used by individual purchaser only

$10,350

Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company


Undecided about purchasing this report?

Enquire Before Buying Request a Free Sample

Get in touch to find out about multi-purchase discounts

reportstore@globaldata.com
Tel +44 20 7947 2745

Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.

Sample Report

United Kingdom (UK) Travel Insurance – Market Dynamics and Opportunities 2020 was curated by the best experts in the industry and we are confident about its unique quality. However, we want you to make the most beneficial decision for your business, so we offer free sample pages to help you:

  • Assess the relevance of the report
  • Evaluate the quality of the report
  • Justify the cost

Download your copy of the sample report and make an informed decision about whether the full report will provide you with the insights and information you need.

Below is a sample report to understand what you are buying

See what our customers are saying
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image

“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

Business Intelligence & Marketing Manager, SAL Heavy Lift

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Marketing Intelligence Manager, Portugal Foods

Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.

I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.

I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.

Head of Customer Insight and Research, Standard Chartered

“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.

Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”

Head of Consumer Sensory Insights, Givaudan

GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise.  The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.

I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.

One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.

Senior Account Manager, TSYS
Financial Services
New
France Life Insurance Market Size and Trends by Line of…
$3,999 | June 2024
Financial Services
New
Wealth Management Trends and Themes in 2024
$5,250 | May 2024
Financial Services
New
Peru Insurance Industry - Key Trends and Opportunities to 2028
$1,450 | May 2024
Go even deeper with GlobalData Intelligence Center

Every Company Report we produce is powered by the GlobalData Intelligence Center.

Subscribing to our intelligence platform means you can monitor developments at United Kingdom (UK) Travel Insurance – Market Dynamics and Opportunities 2020 in real time.

  • Access a live United Kingdom (UK) Travel Insurance – Market Dynamics and Opportunities 2020 dashboard for 12 months, with up-to-the-minute insights.
  • Fuel your decision making with real-time deal coverage and media activity.
  • Turn insights on financials, deals, products and pipelines into powerful agents of commercial advantage.