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

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

  • September 2020 •
  • 52 pages •
  • Report ID: 5974922 •
  • Format: PDF
United Kingdom (UK) Travel Insurance - Market Dynamics and Opportunities 2020

Summary
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- Travel insurance products were temporarily withdrawn from the market at the onset of the pandemic.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.
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