UK Travel Insurance: Market Dynamics & Opportunities 2018

UK Travel Insurance: Market Dynamics & Opportunities 2018


  • Products Id :- FS0148IA
  • |
  • Pages: 47
  • |
  • |
  • |
  Request for Sample Report
  Request A Quote

Executive Summary

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 GBP614.3m due to average premiums rising. The number of UK residents going abroad without holding travel insurance increased again in 2017, mainly due to more trips to Europe being taken. Consumers either feel exposed to a lower level of risk in Europe or are overly reliant on their European Health Insurance Card. The cost of claims for travel insurers increased by 6.3% in 2017 to GBP510m, meaning it was outstripped by premium growth.

Scope

- Trips to Europe increased in 2017, at the expense of longer-haul flights (particularly to North America).

- Marginalized consumers are set to receive help accessing the market following a Financial Conduct Authority review.

- The UK travel insurance market is forecast to be worth GBP634.0m in 2023.

Reasons to buy

- Benchmark yourself against the rest of the market.

- Ensure you remain competitive as new innovations and insurance models begin to enter the market.

- Be prepared for how travel trends and the UK travel insurance market will be impacted by socio-political and economic factors over the next few years.



Read More



Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications

+91-9015378249

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 Figures

Figure 1: The UK travel insurance market recovered in 2017 8

Figure 2: The number of policies rose in 2017, driven by growth in single trips 10

Figure 3: Single-trip policies increased their share after two years of multi growing 11

Figure 4: Multi-trip policies have been more expensive than single trip since 2016 13

Figure 5: Outbound tourism was up everywhere except North America in 2017 19

Figure 6: Holidays remain the most popular reason for traveling 21

Figure 7: The UK economy saw steady growth in 2017 22

Figure 8: Real wages are falling behind nominal wages as inflation outstrips wage growth 23

Figure 9: The value of the pound continues to fluctuate 24

Figure 10: Tourism in Western Europe recovers faster after terror attacks 25

Figure 11: Total claims rose as every category recorded an increase 27

Figure 12: Cancelations remain the leading reason for insurance claims 28

Figure 13: Cancelation claims costs grew sharply in 2017 29

Figure 14: Revolut offers GPS-based travel insurance 34

Figure 15: Travel GWP will stutter in 2018 and 2020, before recording significant growth in 2022 and 2023 37

Figure 16: GlobalData forecast model 38

Figure 17: App in the Air provides a full flight management service 42

Figure 18: Fizzy provides automatic compensation 43

Figure 19: PassportCard means consumers do not need to make upfront payments 44

Figure 20: TransferTravel.com allows customers who are unable to travel to sell their flight and hotel bookings 45

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 GBP1, 2013-17 30

Single User License:
Report can be used by individual purchaser only

Site License:
Report can be shared by unlimited users within one corporate location, e.g. a regional office

Corporate User License: 
Report can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company

To know more information on Purchase by Section, please send a mail to sales [@] kenresearch.com
 

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

Bought By Many

Travel, GWP, premium, claim, medical costs, EHIC, holiday, wearable healthcare

select a license
Single User License
USD 3450 INR 241500
Site License
USD 6900 INR 483000
Corporate User License
USD 10350 INR 724500

NEWSLETTER BY CATEGORY




Testimonials

The report was very informative and gives me an interesting view on the Indian market....

We would like to thank the entire team of Ken Research in showcasing professionalism in research and quick turnaround time. We have had multiple research reports from Ken Research. The deadline communicated for research was duly met. The research reports were covering many aspects in detail. This showcases their endeavor and care for client satisfaction and a strong understanding of the clients’ requirements. Thank you again for your help...

I appreciate their diligence and determination in customizing the research project. The data proves to be valuable and accurate. I would, in future, definitely use their services again...

I would like to thank Ken research team for meeting our report deliverables. The report is very good and we appreciate your well cooperation. ...

The research you conducted was very helpful for us and the integrity of your research approach gave us great confidence in the data. Look forward to collaborating again in future...



Ken Research Private Limited, Unit 14, Tower B3, Spaze I Tech Business Park, Sohna Road, sector 49
     Gurgaon, Haryana - 122001, India

download

Company Brochure

Engage with Us

sales [@] kenresearch.com