UK Travel Insurance Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | EUR 549.34 Million |
| Market Size (2029) | EUR 702.02 Million |
| CAGR (2024 - 2029) | 5.03 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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UK Travel Insurance Market Analysis
The UK Travel Insurance Market size in terms of gross written premiums value is expected to grow from EUR 549.34 million in 2024 to EUR 702.02 million by 2029, at a CAGR of 5.03% during the forecast period (2024-2029).
Travel insurance is a form of financial protection that can cover expenses or damages incurred while traveling domestically or internationally, such as damage to or theft of property, medical treatment in the event of an accident, and travel cancellations and interruptions. The UK is a highly sought-after tourist destination, with a variety of businesses in the tourism and travel industry, including tourism services, food and beverage servicing, rental of transportation equipment, sports and leisure activities, travel accommodation, and travel agencies. The country is home to some of the world's most renowned tourist attractions, such as the Windsor Great Park in the UK, the British Museum, the Roman Baths in the UK, and Stonehenge in the UK.
The COVID-19 pandemic brought the world to a halt, with unforeseeable and unexpected implications affecting global economies, people’s lives, communities, and livelihoods, too, and the risk of layoffs and global recession was at an all-time high. The travel and tourism industry has also endured severe economic slowdowns due to harsh travel restrictions and quarantine regulations worldwide. The market gained traction in 2021 after the gradual relaxation of the lockdowns imposed.
Medical expenses are likely to dominate the UK travel insurance as global travelers are often exposed to foreign bacteria, unfamiliar foods, and side effects of jet lag –all of these may lead to health concerns. Besides, exploring unfamiliar territory may cause accidents resulting in injury without warning and demands for travel insurance, which recover health conditions.
UK Travel Insurance Market Trends
Expansion of Tourism Industry
In the last decade, the global tourist industry has seen consistent development. Many countries are becoming travel hubs and gaining more popularity among millennials. Increased package holidays, disposable income, broad media coverage of various holiday types, and easy Internet travel bookings have expanded the tourism industry. In addition, many students are shifting to other countries for further studies and programs. Additionally, several universities and colleges are also offering scholarship programs, attracting students from around the world. As the tourist industry expands, more cases of crucial documents, lost luggage, natural disasters, and medical issues are reported.
The increasing middle class in the United Kingdom can now afford economic travel to other nations and might also indulge in luxury travel. Alternatively, travelers from the United States, Australia, and New Zealand travel to the United Kingdom, where their dollar goes a lot further. Increasing travel leads to increased incidences of travel disasters, causing a rise in the purchase of travel insurance. The government intends to develop measures for a full-fledged inbound recovery while boosting travel demand, depending on the situation with the coronavirus and the recovery of the travel industry.
Increasing Demand for Travel Insurance
Travel companies and industry experts always advise travelers to purchase travel insurance, but less cautious travelers historically ignore this advice. Over the last two years, the pandemic’s tumultuous journey has made the travel industry unpredictable. The cancellation and abandonment of trips are now commonplace, while a need for medical assistance is now a genuine possibility. There is now a general acceptance from travelers that when they book their holiday, there is a certain probability that they could experience these issues and will need to make a claim.
Consumer sentiment also suggests that travel insurance is a ‘must-have purchase in today’s marketplace. With many travelers stung by the pandemic’s impact on previous holiday plans, travel insurance can alleviate the stress of such issues and ensure tourists are not left out of pocket due to unforeseen circumstances. The continuance of the pandemic will ensure that claims for medical expenses, quarantine, and cancellations will be required for many tourists.
UK Travel Insurance Industry Overview
The travel insurance market is fragmented, with many international companies. Some tourism-based countries have made travel insurance mandatory for travelers. And this will lead to the organic and long-term growth of the travel insurance industry. Some major players are Chubb, Allianz, Saga PLC, Munich RE, and Aviva.
UK Travel Insurance Market Leaders
Munich RE
Allianz
Chubb
Aviva
Saga PLC
*Disclaimer: Major Players sorted in no particular order
UK Travel Insurance Market News
- October 2023: Munich Re, a world-renowned reinsurance company, has joined forces with the world-renowned International SOS, an international leader in health and security, to create an integrated policy solution for the management of epidemics and pandemics. As a result of this new collaboration between the two companies, International SOS is now offering health advisory services for Munich Re's policyholders affected by the pandemic.
- December 2023: Chubb has entered into a strategic partnership with NetSPI, a leading provider of advanced attack surface management (APM) and penetration testing services. NetSPI's flexible solutions are designed to meet the needs of businesses of all sizes and across a variety of industries, according to a Chubb news release. This partnership provides clients with the assurance that they can identify vulnerabilities, security vulnerabilities, and risk exposure before it becomes a claim.
UK Travel Insurance Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Population Growth and the Emergence of Tourism are Driving the Market
4.2.2 The Positive Impact of Online Media
4.3 Market Restraints
4.3.1 Change in Regulatory Environment
4.3.2 Rising Technological Advancements are Difficult to Cope With
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Insights into Technological Advancements in the Industry
4.6 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Single-Trip Travel Insurance
5.1.2 Annual Multi-Trip Travel Insurance
5.2 By Distribution Channel
5.2.1 Insurance Companies
5.2.2 Insurance Intermediaries
5.2.3 Banks
5.2.4 Insurance Brokers
5.2.5 Others
5.3 By End User
5.3.1 Senior Citizens
5.3.2 Education Travelers
5.3.3 Family Travelers
5.3.4 Others
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Munich RE
6.2.2 Allianz
6.2.3 Chubb
6.2.4 Aviva
6.2.5 Saga PLC
6.2.6 Prudential Guarantee
6.2.7 KBC Group
6.2.8 Europ Assistance
6.2.9 AllClear
6.2.10 ABTA*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
UK Travel Insurance Industry Segmentation
The report offers a complete background analysis of the travel insurance market, which includes an assessment of the emerging market trends by segments, significant changes in the market dynamics, and the market overview. The Travel insurance market is segmented by type (single-trip travel insurance and annual multi-trip travel insurance), by distribution channel (insurance companies, insurance intermediaries, banks, insurance brokers, and other distribution channels), by end-user (senior citizens, education travelers, business travelers, family travelers, and other end users).
| By Type | |
| Single-Trip Travel Insurance | |
| Annual Multi-Trip Travel Insurance |
| By Distribution Channel | |
| Insurance Companies | |
| Insurance Intermediaries | |
| Banks | |
| Insurance Brokers | |
| Others |
| By End User | |
| Senior Citizens | |
| Education Travelers | |
| Family Travelers | |
| Others |
UK Travel Insurance Market Research Faqs
How big is the UK Travel Insurance Market?
The UK Travel Insurance Market size is expected to reach EUR 549.34 million in 2024 and grow at a CAGR of 5.03% to reach EUR 702.02 million by 2029.
What is the current UK Travel Insurance Market size?
In 2024, the UK Travel Insurance Market size is expected to reach EUR 549.34 million.
Who are the key players in UK Travel Insurance Market?
Munich RE, Allianz, Chubb, Aviva and Saga PLC are the major companies operating in the UK Travel Insurance Market.
What years does this UK Travel Insurance Market cover, and what was the market size in 2023?
In 2023, the UK Travel Insurance Market size was estimated at EUR 521.71 million. The report covers the UK Travel Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the UK Travel Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the major challenges faced by the United Kingdom Travel Insurance Market?
The major challenges faced by the United Kingdom Travel Insurance Market are a) Lack of awareness about travel insurance benefits and coverage b) Difficulty in understanding travel insurance premium rates c) Potential impact of the rising cost of living on discretionary spending for travel insurance
UK Travel Insurance Industry Report
The UK travel insurance market is experiencing steady growth, driven by the increasing travel and tourism activities within the country. This growth is fueled by rising disposable incomes, increased business travel, and the convenience of online travel bookings and discounted package holidays. Travel insurance provides financial protection against unforeseen circumstances such as medical emergencies, travel cancellations, and lost baggage, making it an essential purchase for many travelers. The UK travel insurance market is segmented by insurance types, end users, and claim types, with cancellations, medical expenses, and baggage claims being the most common. The market is also seeing a shift towards digitalization, with many consumers using digital methods for travel insurance arrangements, enhancing customer service and personalization. Despite the growth, the market faces challenges such as a lack of awareness about premium rates and coverages. However, the expansion of the tourism industry and the increasing demand for travel insurance are expected to drive the travel insurance companies UK and the broader UK travel insurance industry forward. Statistics for the UK travel insurance market share, size, and revenue growth rate, created by Mordor Intelligence™ Industry Reports, provide a comprehensive analysis. The UK travel insurance analysis includes a market forecast outlook and historical overview. Get a sample of this industry analysis as a free report PDF download.
