1. Market Research
  2. > Financial Services
  3. > Insurance Market Trends
  4. > Travel Insurance in the UK, Key Trends and Opportunities to 2018

Synopsis

The report provides market analysis, information and insights into the UK travel insurance business, including:
• Provides a snapshot of market size and market segmentation
• Comprehensive analysis of claims, drivers and market outlook
• Analysis of distribution channels
• Deals, news and regulatory developments

Summary

Gross written premiums for travel insurance were valued at GBP724 million in 2012, and an estimated GBP742 million in 2013. Volatile premium growth was recorded during the review period (2008–2012), as demand was strongly influenced by the UK’s recessionary economic backdrop limiting demand for overseas travel. The compound annual growth rate (CAGR) registered during the review period was more stable at -0.53%, however.

UK residents made fewer trips abroad during the review period, with discretionary spending on holidays constrained by weak growth in earnings, employment uncertainty and rising travel costs, while businesses reduced budgets for corporate travel. A preference for domestic holidays induced a 12.5 million dip in the number of leisure and business trips abroad during the review period.

Medical costs represented 56% of travel insurance claims in 2012, and, despite fewer overseas trips being made, costs relating to claims have risen sharply. The average medical claim totaled GBP900 in 2012, 50% higher than in 2004. The reported refusal of the European Health Insurance Card (EHIC) in hospitals in Spain, Greece and Cyprus added to insurers’ cost burdens.

The travel insurance category is highly competitive and has become increasingly commoditized, with insurers competing on price to maintain market share. Online distribution – through direct and price-comparison website channels – is well established, and has fostered an increase in the number of low-cost internet-only brands. The underwriting capacity for these products is dominated by the 10 largest insurers in the category.

Stronger UK economic growth from 2014 will spur an improvement in consumer confidence and spending to provide the impetus to growth in demand for travel insurance over the forecast period. Gross written premiums are forecast to grow at a CAGR of 2.20% over 2014–2018, reaching a total of GBP829 million in 2018.

Opportunities exist to deepen penetration in the category. An aging population and trends for a more active retirement are increasing demand for travel insurance policies with no age limits. A parliamentary review in 2013 found that 91% of travel policies available in the UK imposed an upper age limit, and age-related charities have begun lobbying for market changes. Customer education also allows insurers to highlight the shortfalls of the basic cover offered through the EHIC and Civil Aviation Authority compensation schemes.

Scope

• This report provides market analysis, information and insights into the UK travel insurance business
• It provides a global snapshot of market size
• It analyses drivers and the outlook for the market
• It provides information on distribution channels
• It covers deals, news and regulatory developments

Reasons To Buy

• Gain an understanding of the UK travel insurance market size
• Learn about the performance of market drivers and distribution channels
• Understand the competitive landscape in terms of performance, profitability and product innovation
• Find out more on key deals and recent developments in the market

Key Highlights

• Gross written premiums topped GBP720 million in 2012 and 2013
• Economic conditions discouraged overseas travel
• Rising medical costs have increased claims
• Internet sales are a major distribution channel
• Premium growth will be maintained over 2014–2018
• Penetration can be deepened through policy innovation and customer education

Table Of Contents

Travel Insurance in the UK, Key Trends and Opportunities to 2018
Table of Contents
1 Executive Summary
2 Introduction
2.1 What is this Report About?
2.2 Definitions
2.3 Methodology
3 Market Analysis
3.1 Market Size
3.1.1 Penetration and density
3.2 Claims
3.2.1 Claims review
3.2.2 Claims outlook
3.3 Market Drivers
3.4 Market Outlook
3.5 Distribution Channels
3.5.1 Distribution outlook
4 Competitive Landscape
4.1.1 Investment returns
4.1.2 Profitability outlook
4.2 Review - The Best Performers of 2012
4.3 Product Innovation
4.4 Travel Insurance - SWOT Analysis
5 Porter's Five Forces Analysis
5.1 Bargaining Power of Suppliers: Low
5.2 Bargaining Power of Buyers: High
5.3 Barriers to Entry: Medium
5.4 Intensity of Rivalry: Medium to High
5.5 Threat of Substitution: Medium
6 Deals
6.1 Allianz Partners With STA Travel
6.2 BIBA Renews Deal With Specialist Broker
6.3 Holiday Extras Acquires Thomas Cook's Insurance Subsidiary
6.4 Axa Increases Broker Capacity
6.5 AIG to Underwrite Bupa's Travel Insurance Products
7 News
7.1 FCA Recommends Shake-up of Insurance Add-ons
7.2 Abta Renews Calls for Regulation Review
8 Regulation and Compliance
8.1 Recent Changes
8.1.1 Consumer Insurance (Disclosure and Representations) Act 2012
8.1.2 EU Gender Directive
8.1.3 Civil Aviation (ATOL) Regulations 2012
8.2 Upcoming Regulations
8.2.1 Solvency II
9 Macroeconomic Backdrop
9.1 Real GDP Growth
9.2 Labor Market Conditions
9.3 Inflation
9.4 Disposable Income
9.5 Interest Rates
10 Company Profiles
10.1 ACE European Group Ltd - Company Overview
10.1.1 ACE European Group Ltd - key facts
10.1.2 ACE European Group Ltd - main products
10.1.3 ACE European Group Ltd - main competitors
10.1.4 ACE European Group Ltd - key employees
10.2 Ageas (UK) Ltd - Company Overview
10.2.1 Ageas (UK) Ltd - key facts
10.2.2 Ageas (UK) Ltd - main products
10.2.3 Ageas (UK) Ltd - main competitors
10.2.4 Ageas (UK) Ltd - key employees
10.3 AIG Europe Ltd - Company Overview
10.3.1 AIG Europe Ltd - key facts
10.3.2 AIG Europe Ltd - main products
10.3.3 AIG Europe Ltd - main competitors
10.3.4 AIG Europe Ltd - key employees
10.4 Allianz Insurance Plc - Company Overview
10.4.1 Allianz Insurance Plc - key facts
10.4.2 Allianz Insurance Plc - main products
10.4.3 Allianz Insurance Plc - main competitors
10.4.4 Allianz Insurance Plc - key employees
10.5 Aviva Plc - Company Overview
10.5.1 Aviva Plc - key facts
10.5.2 Aviva Plc - main products
10.5.3 Aviva Plc - main competitors
10.5.4 Aviva Plc - key employees
10.6 Axa UK Plc - Company Overview
10.6.1 Axa UK Plc - key facts
10.6.2 Axa UK Plc - main products
10.6.3 Axa UK Plc - main competitors
10.6.4 Axa UK Plc - key employees
10.7 Chubb Insurance Company of Europe SE - Company Overview
10.7.1 Chubb Insurance Company of Europe SE - key facts
10.7.2 Chubb Insurance Company of Europe SE - main products
10.7.3 Chubb Insurance Company of Europe SE - main competitors
10.7.4 Chubb Insurance Company of Europe SE - key employees
10.8 Direct Line Insurance Group Plc - Company Overview
10.8.1 Direct Line Insurance Group Plc - key facts
10.8.2 Direct Line Insurance Group Plc - main products
10.8.3 Direct LineInsurance Group Plc - main competitors
10.8.4 Direct Line Insurance Group Plc - key employees
10.9 Great Lakes Reinsurance (UK) Plc - Company Overview
10.9.1 Great Lakes Reinsurance (UK) Plc - key facts
10.9.2 Great Lakes Reinsurance (UK) Plc - main products
10.9.3 Great Lakes Reinsurance (UK) Plc - main competitors
10.9.4 Great Lakes Reinsurance (UK) Plc - key employees
10.10 Mapfre Asistencia Compañía Internacional de Seguros y Reaseguros, SA - Company Overview
10.10.1 Mapfre Asistencia Compañía Internacional de Seguros y Reaseguros, SA - key facts
10.10.2 Mapfre Asistencia Compañía Internacional de Seguros y Reaseguros, SA - main products
10.10.3 Mapfre Asistencia Compañía Internacional de Seguros y Reaseguros, SA - main competitors
10.10.4 Mapfre Asistencia Compañía Internacional de Seguros y Reaseguros, SA - key employees
11 Statistics
11.1 Review Period: 2008-2012
11.2 Forecast Period: 2013-2017
12 Appendix
12.1 Methodology
12.2 Contact Timetric
12.3 About Timetric
12.4 Timetric's Services
12.5 Disclaimer



List of Tables

Table 1: Insurance Industry Definitions
Table 2: UK Travel Insurance - Market Summary (GBP Thousand), 2008-2012
Table 3: UK Travel Insurance - Online Retailers
Table 4: UK Travel Insurance -Key Affinity Partnerships
Table 5: UK Travel Insurance - Market SWOT Analysis
Table 6: Recent and Upcoming Regulatory Changes
Table 7: ACE European Group Ltd, Key Facts
Table 8: ACE European Group Ltd, Main Products
Table 9: ACE European Group Ltd, Key Employees
Table 10: Ageas (UK) Ltd, Key Facts
Table 11: Ageas (UK) Ltd, Main Products
Table 12: Ageas (UK) Ltd, Key Employees
Table 13: AIG Europe Ltd, Key Facts
Table 14: AIG Europe Ltd, Main Products
Table 15: AIG Europe Ltd, Key Employees
Table 16: Allianz Insurance Plc, Key Facts
Table 17: Allianz Insurance Plc, Main Products
Table 18: Allianz Insurance Plc, Key Employees
Table 19: Aviva Plc, Key Facts
Table 20: Aviva Plc, Main Products
Table 21: Aviva Plc, Key Employees
Table 22: Axa UK Plc, Key Facts
Table 23: Axa UK Plc, Main Products
Table 24: Axa UK Plc, Key Employees
Table 25: Chubb Insurance Company of Europe SE, Key Facts
Table 26: Chubb Insurance Company of Europe SE, Main Products
Table 27: Chubb Insurance Company of Europe SE, Key Employees
Table 28: Direct Line Insurance Group Plc - Key Facts
Table 29: Direct Line Insurance Group Plc - Main Products
Table 30: Direct Line Insurance Group Plc - Key Employees
Table 31: Great Lakes Reinsurance (UK) Plc, Key Facts
Table 32: Great Lakes Reinsurance (UK) Plc, Main Products
Table 33: Great Lakes Reinsurance (UK) Plc, Key Employees
Table 34: Mapfre Asistencia Compañía Internacional De Seguros Y Reaseguros, SA, Key Facts
Table 35: Mapfre Asistencia Compañía Internacional de Seguros y Reaseguros, SA, Main Products
Table 36: Mapfre Asistencia Compañía Internacional de Seguros y Reaseguros, SA, Key Employees
Table 37: Travel Insurance (GBP Thousand), 2008-2012
Table 38: Travel Insurance (GBP Thousand), 2013-2018



List of Figures

Figure 1: UK Travel Insurance - Gross Written Premiums (GBP Million), 2008-2012
Figure 2: UK Travel Insurance - Penetration Rate (%) and Density (GBP), 2008-2012
Figure 3: UK, EU and US Health Inflation (%), 2008-2013
Figure 4: UK Residents' Visits Abroad (Thousands), 2006-2013
Figure 5: Annual Change in UK Residents' Travel Expenditure (%), 2009-2012
Figure 6: UK Business Spending on Travel Abroad (GBP Billions), 2008-2012
Figure 7: UK Consumer Prices - Travel and Transport (%), 2004-2013
Figure 8: UK Travel Insurance - Gross Written Premiums Forecast (GBP Millions) 2014-2018
Figure 9: UK Population Growth by Age (%) 2007-2018
Figure 10: Market Shares of the 10 Leading UK Travel Insurers (%) in 2012
Figure 11: UK Travel Insurance - Five Forces Analysis
Figure 12: The UK's Insurance Regulatory Framework
Figure 13: UK Real GDP Growth (%), 2008-2018
Figure 14: UK Unemployment and Redundancy Rates (%), 2004-2013
Figure 15: UK Average Weekly Earnings, 2004-2013
Figure 16: UK Consumer Price Inflation (%), 2004-2013
Figure 17: UK Consumer Price Inflation (%), 2004-2013
Figure 18: UK Bank of England Rate (%), 2004-2014

View This Report »

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 24 Million searchable statistics with tables, figures & datasets
  • More than 10,000 trusted sources
24/7 Customer Support

Talk to Veronica

+1 718 514 2762

Purchase Reports From Reputable Market Research Publishers
Fraud Detection and Prevention Market by Solution, Application Areas, Service, End-User, Vertical - Global Forecast to 2021

Fraud Detection and Prevention Market by Solution, Application Areas, Service, End-User, Vertical - Global Forecast to 2021

  • $ 7150
  • Industry report
  • September 2016
  • by MarketsandMarkets

“Rapid increase in mobile banking will drive the FDP market” The Fraud Detection and Prevention (FDP) market size is estimated to grow from USD 14.36 billion in 2016 to USD 33.19 billion by 2021, at ...

Customer Experience Management Study—Malaysia’s Life Insurance Market, 2015

Customer Experience Management Study—Malaysia’s Life Insurance Market, 2015

  • $ 4950
  • Industry report
  • September 2016
  • by Frost & Sullivan

Benchmarking the Industry Excellence in Delivering Superior Customer Experience Customer experience is the accumulation of customers’ experiences throughout their journey with the supplier, across any ...

Customer Experience Management Study—Malaysia’s Health Insurance Sector 2015

Customer Experience Management Study—Malaysia’s Health Insurance Sector 2015

  • $ 4950
  • Industry report
  • September 2016
  • by Frost & Sullivan

Benchmarking Industry Excellence in Delivering a Superior Customer Experience Customer experience is the accumulation of customers’ experiences throughout their journey with the supplier, across any ...


ref:plp2014

Reportlinker.com © Copyright 2016. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.