UK Travel Insurance: Market Dynamics & Opportunities 2018
Summary
"UK Travel Insurance: Market Dynamics & Opportunities 2018", report provides in-depth analysis of the UK travel insurance market. It looks at market size and profitability, as well as changes in premiums, claims, travel trends, regulation, and opportunities. It provides a thorough overview of the market along with future forecasts.
The UK travel insurance market experienced an increase of 0.9% in the number of policies being written in 2017, which resulted in GWP rising by a much more significant 7.9% to
Table of Contents
1. EXECUTIVE SUMMARY 2
1.1. Market summary 2
1.2. Key findings 2
1.3. Critical success factors 2
2. MARKET DYNAMICS 7
2.1. Introduction 7
2.2. UK travel insurance market GWP picked up in 2017 7
2.2.1. The number of policies was driven up by single trip growth 9
2.2.2. The trend of multi-trip policies increasing their share of market GWP has ended 10
2.2.3. Average travel insurance premiums increased 12
2.2.4. The influence of age on premium prices 13
2.2.5. Insurers must do more for cancer sufferers and other long-term conditions 15
2.3. Travel insurance and added-value accounts 16
2.3.1. Added-value accounts remain popular with travelers 16
2.3.2. The disadvantages of added-value account travel insurance policies 17
2.3.3. Travel insurance complaints remain high, despite a slight fall 17
2.4. Travel trends among UK residents 18
2.4.1. Travel abroad by UK residents continued to grow in 2017 18
2.4.2. Holidays remain the main purpose of traveling abroad 20
2.5. The influence of economic, socio-political, and health events on travel 21
2.5.1. The state of the UK economy has an impact on travel 21
2.5.2. The influence of exchange rates on trips abroad by UK residents 23
2.5.3. Social unrest in travel destinations 24
2.5.4. Air strikes and Monarch's collapse pose further problems for insurers 26
2.6. Travel insurance claims 26
2.6.1. The number of travel insurance claims continues to fall 26
2.6.2. Medical expenses outweigh cancelations in terms of claims costs 28
2.6.3. Changes in booking culture could reduce the cost of cancelations 30
2.6.4. The withdrawal of EHIC will provide a boost to insurers 30
3. COMPETITOR DYNAMICS 32
3.1. AXA leads the way in the travel insurance space 32
3.1.1. Key affinity changes occurred in 2017 32
3.1.2. Challenger banks are entering the market 33
3.1.3. AXA is creating partnerships with third-party booking websites 35
3.1.4. Co-op Insurance kicks off cashless cover among mainstream insurers 35
4. THE MARKET GOING FORWARD 36
4.1. Market forecasts 36
4.1.1. Current market forecast: UK travel insurance will experience modest growth 36
4.1.2. Market forecast: smooth Brexit process 38
4.1.3. Market forecast: hard Brexit process 39
4.2. Uncertainty in the UK economy 40
4.2.1. How the UK economy copes with Brexit is key for the travel market 40
4.3. Technology will influence the travel insurance market 40
4.3.1. Wearable tech could play a role in prevention 40
4.3.2. Virtual GP services could become commonplace 41
4.3.3. The development of flight delay policies 41
4.3.4. PassportCard claims to have created the world's first real-time travel insurance 44
4.3.5. The concept of a travel insurance marketplace has emerged 44
5. APPENDIX 46
5.1. Abbreviations and acronyms 46
5.2. Bibliography 46
5.3. Further reading 46
List of Tables
Table 1: UK travel insurance market GWP and annual growth rate, 2013-17 8
Table 2: Number of travel insurance policies written, 2011-17 9
Table 3: Share of UK travel insurance GWP by policy type, 2013-17 11
Table 4: Average premiums and percentage change by policy type, 2013-17 12
Table 5: Average premium prices by demographic, 2015-17 14
Table 6: Total number of outbound UK visitors by destination (000s), 2012-17 19
Table 7: Number of overseas visits by purpose (000s), 2014-17 20
Table 8: Historical exchange rates relative to
ABI
AXA
App in the Air
Direct Line Group
Aviva
HSBC
Direct Line Group
Ageas
LV=
AIG Europe
AmTrust
PassportCard
Co-operative
Fizzy
Blink
TransferTravel.com
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