UK Travel Insurance: Market Dynamics & Opportunities 2019

Table of Contents

1. EXECUTIVE SUMMARY

• 1.1. The future of the declining travel insurance market is dependent on Brexit
• 1.2. Key findings
• 1.3. Critical success factors

2. MARKET DYNAMICS

• 2.1. Introduction
• 2.2. The UK travel insurance market declined in 2018
  • 2.2.1. The number of contracts fell for both single-trip and multi-trip policies
  • 2.2.2. Multi-trip policies increased their share of the market despite decreasing in number
  • 2.2.3. Average premiums decreased for the first time since 2015
  • 2.2.4. The influence of age on premium prices
  • 2.2.5. Insurers must do more for individuals with pre-existing conditions of all types
• 2.3. Travel insurance and added-value bank accounts
  • 2.3.1. Added-value accounts remain popular with travelers
  • 2.3.2. The disadvantages of added-value account travel insurance policies
• 2.4. Travel trends among UK residents
  • 2.4.1. Travel abroad by UK residents fell in 2018
  • 2.4.2. Holidays remain the main purpose of traveling abroad
• 2.5. The influence of economic, socio-political, and health events on travel
  • 2.5.1. The state of the UK economy has an impact on travel
  • 2.5.2. The influence of exchange rates on trips abroad by UK residents
  • 2.5.3. Social unrest in travel destinations
  • 2.5.4. The effect of the Zika virus lingers on
• 2.6. Travel insurance claims and complaints
  • 2.6.1. The number of travel insurance claims rose again in 2018
  • 2.6.2. Medical expenses increased, outweighing cancellations in terms of claims costs
  • 2.6.3. More airlines going bust and more drone incidents could increase cancellation costs
  • 2.6.4. The withdrawal of EHIC may provide a boost to insurers
  • 2.6.5. Travel insurance complaints increased significantly despite already being high

3. COMPETITOR DYNAMICS

• 3.1. The structure of the UK travel insurance market
  • 3.1.1. MAPFRE is the UK’s leading travel insurance underwriter
  • 3.1.2. AXA underwrote the highest number of policies in the UK
  • 3.1.3. Nationwide was the most popular brand for travel insurance
  • 3.1.4. Products offered by some of the leading providers
• 3.2. The affinity channel saw both entrances and withdrawals
  • 3.2.1. The Co-operative Bank entered the travel insurance market in 2018
  • 3.2.2. Age Partnership has also entered the travel insurance space
  • 3.2.3. John Lewis and Tesco Bank withdrew their travel insurance in early 2019
• 3.3. Challenger banks are entering the market
  • 3.3.1. Revolut launched GPS-powered travel insurance in 2018
  • 3.3.2. Other challenger banks are playing catchup and playing safe

4. THE MARKET GOING FORWARD

• 4.1. The future size of the market will depend on the Brexit negotiations
  • 4.1.1. Current market forecast: UK travel insurance will grow in 2019 and then plateau
  • 4.1.2. Market forecast: smooth Brexit process
  • 4.1.3. Market forecast: hard Brexit process
• 4.2. Technological opportunities in the claims process
  • 4.2.1. The claims process could be completed online
  • 4.2.2. Replacing the claims system with automatic payments
  • 4.2.3. Cashless systems remove the need for upfront payments
  • 4.2.4. Virtual GP services could become commonplace
• 4.3. Technological opportunities beyond claims
  • 4.3.1. AI could be used for customer service
  • 4.3.2. Wearable tech could play a role in inclusivity
• 4.4. Compulsory travel insurance could affect the size of the market
• 4.5. The rise of the staycation could also be an opportunity

5. APPENDIX

• 5.1. Abbreviations and acronyms
• 5.2. Methodology
  • 5.2.1. Competitor rankings
  • 5.2.2. 2017 and 2018 UK Insurance Consumer Surveys
  • 5.2.3. Forecasting model
• 5.3. Secondary sources
• 5.4. Further reading

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