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

1.1 Market overview
1.2 Key findings
1.3 Critical success factors

2.1 The UK travel insurance market has surged above pre-pandemic levels
2.2 The cost-of-living crisis is shaping consumer choices in the travel insurance market
2.3 Multi-trip policies account for over half of the UK travel insurance market
2.4 The average multi-trip premium more than doubled in 2022
2.5 Premiums increased across all age groups in 2022
2.6 The FCA has delayed its travel insurance signposting review
2.7 The number of claims notified increased by 147.9% in 2022
2.8 The cost of claims increased by 230.6% in 2022
2.9 The average value of claims paid continued to increase in 2022
2.10 Travel insurance complaints fell significantly for 2021-22
2.11 Confidence in travel started returning in 2022
2.12 The influence of economic, political, and health events on travel
2.13 Travel became more expensive throughout 2022, driven by a weak pound
2.14 Consumers are less likely to purchase travel insurance for domestic holidays
2.15 The UK’s GHIC can create opportunities for insurers
2.16 The Russia/Ukraine conflict has affected travel insurance

3.1 Munich Re remains the largest underwriter in the market by premiums
3.2 Munich Re underwrote the largest number of policies in 2022
3.3 PCWs became the leading channel for travel insurance in 2022
3.4 Airbnb offers embedded travel insurance

4.1 The travel insurance market is set to increase to GBP703.5 million by 2027
4.2 Technological opportunities in the market
4.3 Youngers consumers are more likely to purchase parametric travel insurance
4.4 Travel insurers are beginning to offer insurance against extreme weather

5.1 Abbreviations, acronyms, and initialisms
5.2 Methodology
5.3 Secondary sources
5.4 Further reading

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Table 1: UK travel insurance market GWP and annual growth rate, 2018-22
Table 2: UK travel insurance policies written and annual growth rate, 2018-22
Table 3: Average premiums and percentage change by policy type, 2018-22
Table 4: Average premiums and percentage change by age group, 2020-22
Table 5: Number of visits abroad by region (000s), 2018-22
Table 6: Admiral’s annual travel insurance coverage, 2022
Table 7: Staysure’s annual travel insurance coverage, 2022
Table 8: Nationwide annual travel insurance coverage, 2022

Figure 1: GWP in the UK travel insurance market increased above pre-pandemic levels in 2022
Figure 2: Despite strong GWP growth, the number of policies written continued to fall in 2022
Figure 3: 2022 saw a notable shift away from multi-trip policies
Figure 4: The average multi-trip policy premium increased by over 100% in 2022
Figure 5: The number of claims notified soared by 147.9% in 2022
Figure 6: With the impact of COVID-19 waning, cancellations accounted for a smaller proportion of claims in 2022
Figure 7: The cost of claims soared in 2022 amid the cost-of-living crisis
Figure 8: The average value of claims reached record highs in 2022
Figure 9: The number of complaints plummeted in 2021-22
Figure 10: Outbound tourism increased in 2022 for all regions
Figure 11: The end of the COVID-19 pandemic saw holidays once again become the dominant reason for travel
Figure 12: In Q1 2023, unemployment reached its highest level since Q4 2021
Figure 13: Inflation peaked in 2022
Figure 14: Real weekly earnings turned negative in 2022 as inflation skyrocketed
Figure 15: The pound has started to recover against the US dollar in 2023
Figure 16: Consumers are less likely to purchase travel insurance for domestic trips
Figure 17: Great Lakes Munich Re Group is the dominant underwriter by travel insurance premiums
Figure 18: Great Lakes Munich Re Group underwrote the largest share of contracts sold in 2022
Figure 19: Airbnb offers embedded travel insurance
Figure 20: Travel insurance growth is set to moderate after a strong 2022
Figure 21: Younger consumers are more willing to purchase parametric travel insurance
Figure 22: Forecasting methodology