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Table of Contents
- How often do Brits take out travel insurance?
- Travel insurance claims processed in 2022
- Types of claim made between 2018 and 2023
- Customer satisfaction and successful claims
- Sources
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The UK’s travel insurance market is currently valued at £468 million and is forecast to be worth £598 million by 2029[1].
How often do Brits take out travel insurance?
- According to a 2023 Forbes Advisor survey, 77% of Brits have purchased travel insurance in the past, 21% have never purchased travel cover, and 2% are not sure[2]
Out of the group that has purchased travel insurance before:
- 48% have cover in place every time they go abroad, 23% purchase cover annually and 5% do so each time they travel away from home, including when taking a staycation in the UK[2]
- Only 9% of this group said they take out travel insurance most of the time when they travel abroad. Another 9% said they do so occasionally, 5% use travel cover provided with their bank account and 1% take out travel cover at times, and in circ*mstances, different to those already mentioned[2]
Demographics
When purchasing travel insurance, there are notable variations among different age groups:
- Those aged 18 to 24 appear to be more cautious about potential risks when travelling than those in the 25 to 34 age bracket, with 23% of the younger group choosing to buy travel insurance annually compared to only 11% of the latter[2]
- However, out of all age groups, 18 to 24-year-olds buy travel insurance every time they travel abroad the least, with only 45% doing so. A greater percentage (53%) of 55 to 64-year-olds do the same. This is the largest proportion of all age groups[2]
Travel insurance claims processed in 2022
- Travel insurers paid out a total £352 million in 2022, a substantial 230% increase on the £107 million paid out in 2021[3] when Covid restrictions were in place
- The number of travel insurance claims made surged to 362,000, up 148% on the previous year, reflecting a post-pandemic increase in travel[3]
- The average claim amounted to £973, an increase of 33% on 2021 and the highest figure since trade body, the Association of British Insurers (ABI), started recording this data in 2004[3]
- The number of cancellation claims made rose to 129,000, and medical claims, 112,000, an increase of 75% and 235% on 2021, respectively[3]
- The average emergency medical treatment claim amounted to £1,750, an increase of 26% on 2021, and the highest figure on the ABI’s records[3]
- While 36 to 40-year-olds claimed an average of £571 last year, those aged 71 to 75 claimed £1,950. This was reflected in an average single trip policy premium of £40 for the former group, and £109 for the latter[3]
- Those travelling to Spain made the highest number of medical claims (20,000), then those visiting the US (10,520), Greece (8,492) and France (7,480).[3]
Notable travel insurance payouts
- £250,000 to a traveller who suffered a serious blood infection in Thailand, and needed intensive treatment, and an air ambulance back to the UK[3]
- £15,000 to a traveller who required private medical treatment for a kidney infection.[3]
Types of claim made between 2018 and 2023
- Over the past five years, the most common reasons for travel insurance claims among Brits have been trip cancellation and lost belongings, which have accounted for 35% and 31% of claims respectively[2]
- 27% of claims were related to emergency medical treatment for sickness or injury, while 25% were the result of flight delays[2]
- Other reasons for travel insurance claims during this period included trip interruption or curtailment, which represented 20% of claims, stolen belongings (18%) emergency evacuation (13%) and claims resulting from natural disasters (13%)[2]
Customer satisfaction and successful claims
According to the latest data from the Chartered Insurance Institute (September 2023) customer satisfaction with travel insurance policies has reached its highest level since the introduction of the organisation's Public Trust Index survey in July 2018[4]
- The percentage of customers satisfied with their cover has risen from 76% in July 2021 during the challenges posed by the Covid-19 pandemic to 87% in the same month this year[4]
- Only 5% of customers expressed dissatisfaction with their travel insurance purchases, a decrease from a dissatisfaction level of 8% recorded in July 2021. The remaining respondents neither conveyed satisfaction or dissatisfaction with their policies[4]
Furthermore, a survey conducted by Forbes Advisor found that when claiming on their travel insurance, most travellers find the process easy to understand:
- A total of 34% of respondents found the claims process ‘very easy to understand’, with the 35 to 44 age group stating this the most (59%). Meanwhile, 43% of respondents found it ‘somewhat easy to understand[2]
- Approximately 14% of respondents had a ‘neutral’ opinion regarding the claims process. Among these, the 55 to 64 stated this the most (21%)[2]
- Only 7% of respondents found it ‘somewhat difficult to understand’, while a minimal 2% considered it ‘very difficult to understand’.[2]
When researching how much Brits claim on their travel insurance, Forbes Advisor found that:
- The majority of respondents (38%), managed to recoup between 26% to 74% of losses when claiming on their travel insurance within the last five years[2]
- A further 28% of Brits had 75% of their losses/expenses covered by their travel insurance within the last five years[2]
- A similar percentage (27%) had 25% or less of their losses/expenses covered during this period while 7% were not sure how much they had recouped[2]
