Rising Overseas Travel Fuels the UK Travel Insurance Market Demand

According to the Next Move Strategy Consulting, the UK Travel Insurance Market is valued at USD 1.88 billion in 2023, and is expected to reach USD 3.16 billion by 2030, with a CAGR of 6.7% from 2024 to 2030. 

The increase in overseas travel by UK residents drives demand for travel insurance to protect against unforeseen risks, thereby boosting market growth. According to the Office for National Statistics, overseas visits by UK residents rose by 23.7%, from 58,536 in 2022 to 72,436 in 2023, highlighting the growing need for travel insurance amid rising international travel-related issues.

Furthermore, the increase in travel insurance claims in the UK is driving market growth by raising consumer awareness about the importance of insurance coverage. The Association of British Insurers (ABI) reported an average claim of USD 1311.5, a 33% rise from 2021 and the highest since 2004, prompting providers to innovate and offer more comprehensive policies to meet consumer needs and manage travel-related risks effectively.

However, the regulatory complexities in the UK travel insurance market growth are due to intricate regulations imposed by authorities, resulting in significant administrative burdens and costs for insurers. Compliance with the Financial Conduct Authority (FCA) requirements for clear policy information increases operational challenges, potentially restricting market entry for new players and limiting growth for existing companies.

On the contrary, the integration of big data analytics in travel insurance market is poised to drive growth by enabling personalized policies, accurate risk assessment, and better fraud detection. This technology boosts profitability, efficiency, and innovation in product development. For instance, in August 2024, UK-based insurtech Gigasure launched Travel Insurance MGA, leveraging data-driven insights to offer tailored travel insurance, reflecting the industry's shift towards specialization and innovation.

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According to the report, leading players in the UK travel insurance industry include Aviva Plc., Staysure Group, Travel Insurance Facilities Plc (TIF), Admiral Group Plc., AXA SA, esure Group plc, Chubb Limited, Allianz Assistance, Saga Plc, and All Clear Travel Insurance among others.

These market players are adopting strategies such as collaboration across various regions to maintain their dominance in the UK travel insurance market. For instance, in July 2024, Allianz Partners UK collaborated with TUI to provide a range of travel insurance options for UK customers, enhancing their travel experience with comprehensive coverage and support.

Also, in May 2023, Allianz Partners UK collaborated with Avid Insurance to enhance its travel insurance services in the UK, expanding their coverage options and improving their offerings.In addition, in July 2022, AXA Partners UK teamed up with Rock Insurance Group to enhance travel insurance offerings, including single trip and annual multi-trip coverage. This collaboration focuses on digital innovation to deliver a streamlined and efficient customer experience for UK travelers.

Key Insights from the UK Travel Insurance Market Report:

• The information related to key drivers, restraints, and opportunities and their impact on the UK travel insurance market is provided in the report.

• The value chain analysis in the market study provides a clear picture of the role of each stakeholder.

• The report provides an analysis of the UK travel insurance market share and competitive landscape of key players in the industry.