The UK Travel Insurance Market size is projected to reach USD 890.64 million by 2025. The UK Travel Insurance Market is primarily driven by rising percentage of millennial travelers who want to explore the world and have unique experiences. Driving factors for the surge in travelers include a rise in disposable income, rise in aspirations, low dependency ratio and more spare time among others. Apart from that, a large number of unusual natural disaster events have reinforced the demand for UK travel insurance market.
The UK Travel Insurance Market research report assesses market demand and scenario over the period from 2015 to 2025. The report highlights the historic trends between 2015 and 2017 and the 2019 to 2025 market forecast. The report studies both at global and country level the current status and future market prospects. The UK travel insurance market is segmented by type, application, and type of travel, distribution channel and geography.
The report also throws light on various aspects of the UK travel insurance industry by assessing the market using value chain analysis. The report covers several qualitative aspects of the UK travel insurance industry in market drivers, market restraints and key industry trends. Furthermore, the report provides an in-depth assessment of the market competition with company profiles of global as well as local vendors.
Travel insurance could cover lost or stolen baggage and personal liability, trip cancellation or delays, medical expenses while traveling inside the country or abroad. The type of cover is dependent on countries, a traveller is visiting and the length of their trip or the activities done while visiting. Travel insurance is available for a single trip, multiple trips or even for backpacking.
On the basis of types, UK travel insurance covers categories like Medical Expenses, Trip Cancellation, Trip Delay and Property Damage. Medical expenses are likely to dominate the UK travel insurance as the global travelers are often exposed to foreign bacteria, unfamiliar foods and side effects of jet lag –all of these may lead to health concerns. Besides that, exploring unfamiliar territory may cause accidents resulting in injury without warning demands for travel insurance which recover health conditions.
On the basis of the type of travelers, the market is bifurcated into Business Travel and Leisure Travel. Traveling for leisure is gaining momentum in the UK owing to increasing disposable income, millennials showing interest to cover new places or exploring new culture and to break from stressful work life. Most of the leisure travels are planned during the holidays and during holidays travel insurance companies business reach to heights.
Based on distribution channels, the market has two categories which include direct sales and indirect sales. UK travel insurance market is considered as ‘either the most developed or one of the most developed markets in Europe’. Direct sales have dominated the market due to direct channels like the Internet. The Internet offers different websites customers which help them compare prices and more benefits covered in a travel insurance policy. With the internet distribution holding a strong foothold in the distribution market, two businesses got established which is Money Supermarket and InsureandGo.
Furthermore, based on the applications of travel insurance, the market is segmented into domestic and international travel. International travel is likely to dominate the UK travel insurance market by occupying 79.72% of market share. The UK Travel Insurance Market has strong competition among the well-established and new emerging players. These players aim to gain an edge over the other players by including more coverage to travelers in a travel insurance policy.
The major players of UK travel insurance include Allianz SE,KBC Group,Chubb Ltd., Prudential Financial, Inc., Munich Re (Group),China Pacific Life Insurance Co. Ltd., Travelex Insurance Services, Europ Assistance and Aviva PLC, Saga PLC. Most of the customers are using different distribution channels to purchase their travel insurance by comparing price which creates a threat from other channels. This has led to high competition within the UK travel insurance market. In order to remain competitive and grow their market share, providers are strengthening their online presence along with key developments. Recently, Saga plc has come up with key developments in travel and insurance divisions. It’s first ever purpose-built cruise ship, Spirit of Discovery will sail with a maximum of 999 guests and 523 crew around the world. Another important step is the launch of an advertising campaign for three-year fixed price insurance which is focused on growing direct channels and rewarding customer loyalty.
Segment overview of UK Travel Insurance Market
Type Overview, 2015-2025 (USD Million)
- Medical Expenses
- Trip Cancellation
- Trip Delay
- Property Damage
Application Overview, 2015-2025 (USD Million)
- Domestic Travel
- International Travel
Type of Travel Overview, 2015-2025 (USD Million)
- Business Travel
- Leisure Travel
Distribution Channel Overview, 2015-2025 (USD Million)
- Direct Sales
- Indirect Sales