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Forecast Period
|
2026-2030
|
|
Market Size (2024)
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USD 1.92 Billion
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CAGR (2025-2030)
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14.04%
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Fastest Growing Segment
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Online
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Largest Market
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England
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Market Size (2030)
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USD 4.21 Billion
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Market Overview
United
Kingdom Travel Insurance Market was valued at USD 1.92 Billion in 2024 and is expected to reach USD 4.21 Billion by 2030 with a CAGR of 14.04% during the forecast period. The United Kingdom Travel Insurance Market is a robust and
dynamic sector that provides travelers with financial protection and peace of
mind when they embark on domestic or international journeys. Travel insurance
offers coverage for a variety of unexpected events that can disrupt travel
plans, including trip cancellations, medical emergencies, lost luggage, and
other unforeseen incidents. The United
Kingdom Travel Insurance Market is a well-established and competitive space. It
offers a wide range of insurance products designed to meet the diverse needs of
travelers, whether they are going on a short weekend getaway, a business trip,
or an extended vacation abroad. These insurance policies aim to provide
financial protection and assistance in case of unexpected events during travel. Inbound and outbound tourism to and from the UK increased in 2023 compared to 2022 but remained below pre-pandemic levels. VisitBritain estimated 41.2 million inbound visits in 2024, slightly above pre-pandemic levels by 1%, and forecasts 43.4 million visits in 2025, reflecting 5% growth. While domestic tourism slightly declined in 2023, domestic spending still surpassed inbound spending. According to the Office for National Statistics, tourism directly contributed £58 billion (approx. $73 billion USD) to the UK economy and supported 1.2 million jobs in 2023, highlighting the sector's ongoing importance despite recovery challenges.
Key Market Drivers
Increasing Awareness and
Demand for Comprehensive Coverage
One
of the primary drivers of the United Kingdom Travel Insurance Market is the
increasing awareness among travelers of the importance of having comprehensive
coverage. As people become more aware of the potential risks associated with
travel, they are actively seeking travel insurance policies that can provide
financial protection and assistance in times of need. The UK has a significant number of residents who travel
internationally for business and leisure. Whether it's a beach vacation in the
Mediterranean, a business trip to Asia, or a backpacking adventure in South
America, international travel exposes individuals to various risks. This has
led to a growing awareness of the need for travel insurance that covers
unexpected events, such as trip cancellations, medical emergencies, and lost
luggage. Modern travelers often plan complex itineraries that may
involve multiple destinations, connecting flights, and various accommodation
options. According to ABI (Association of British Insurers), over 24 million travel insurance policies were sold in the UK in 2023, up from approximately 21 million in 2022, indicating growing awareness of the importance of travel protection.
Evolving Travel Patterns and
Risk Profiles
The
changing travel patterns and risk profiles of UK travelers are another
significant driver of the Travel Insurance Market in the United Kingdom.
Travelers are increasingly seeking adventure and
specialty travel experiences, such as skiing, scuba diving, or wildlife
safaris. These activities often come with higher associated risks, leading
travelers to opt for insurance policies that offer specialized coverage for
their specific activities. With the UK being a hub for international business, corporate travel
has become a common occurrence. Businesses and their employees recognize the
importance of travel insurance to protect against unexpected disruptions and
ensure the well-being of employees during work-related trips. As the UK's population ages, there is a growing segment of senior
travelers who may have specific health considerations. Travel insurance
policies that cater to the needs of older travelers have seen increased demand. Solo travel is on the rise, with more people exploring the world
independently. In 2024, premiums for single-trip travel insurance policies increased by 7%, while annual multi-trip plans, especially those tailored for older travelers, saw even sharper price hikes. A 2024 ABTA report found that 72% of British travelers consider travel insurance “essential” post-COVID, compared to only 56% before the pandemic, reflecting a long-term shift in consumer behavior.
Technological Advancements and
Digital Distribution
The
integration of technology and the digital distribution of travel insurance
policies have revolutionized the United Kingdom Travel Insurance Market. The advent of the internet has made it easier for
travelers to research, compare, and purchase travel insurance online. Online
platforms and aggregators allow consumers to explore a variety of policy
options, read reviews, and make informed choices based on their specific needs. Travel insurance providers have developed mobile
apps that offer convenience and flexibility to travelers. These apps allow
travelers to purchase coverage on the go, access policy information, and
receive real-time assistance in case of emergencies. Technology has streamlined the claims process. Travelers can submit
claims digitally, making the process faster and more efficient. Insurers often
use AI and automation to assess claims, expediting the settlement process. Many travel insurance policies offer 24/7 emergency assistance
services accessible via phone or app. In 2023, over 60% of UK travel insurance policies were purchased online—up from approximately 45% in 2020. Mobile apps alone accounted for nearly 30% of total policy sales in the past year. The number of InsurTech startups focused on travel insurance nearly doubled between 2021 and 2024, rising from around 20 to 38 active firms.
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Key Market Challenges
Digital Transformation and Cybersecurity Risks
While digitalization is transforming the UK travel insurance market through streamlined operations, online sales, and improved customer engagement, it also presents challenges, particularly regarding data privacy and cybersecurity. The increasing use of digital platforms and mobile apps exposes both insurers and customers to risks of data breaches, identity theft, and cyberattacks. Travel insurance providers collect sensitive personal and financial data, making them prime targets for cybercriminals. A major breach could severely damage a brand’s reputation, lead to financial losses, and trigger regulatory penalties under laws like the UK GDPR. Furthermore, legacy IT systems used by traditional insurers often struggle to integrate with newer technologies, resulting in system vulnerabilities and inefficient workflows. Adopting advanced digital solutions such as AI-powered underwriting or blockchain for smart contracts also requires substantial investment and technical expertise, which may not be feasible for smaller providers.
Evolving Risks and Coverage
Needs
One of the most significant challenges in the UK travel insurance market is the evolving and unpredictable global risk landscape. Events such as the COVID-19 pandemic, geopolitical tensions, natural disasters, and changes in visa/travel regulations have introduced new levels of uncertainty in international travel. These risks lead to a surge in claims, cancellations, and demand for specialized coverage, putting pressure on insurers to redesign policies frequently. Moreover, travellers are increasingly expecting coverage for pandemic-related issues, war zones, political unrest, and climate-related disruptions, which raises underwriting complexity. Insurers must not only enhance risk modeling but also adapt quickly to emerging threats. However, balancing comprehensive coverage with sustainable pricing remains a critical concern. Many providers face the dilemma of covering high-risk events while ensuring affordability and profitability. Additionally, consumers often misunderstand or overlook policy exclusions, leading to disputes and dissatisfaction when claims are denied.
Regulatory Compliance and Brexit-Related Complications
Regulatory compliance remains a persistent challenge in the UK travel insurance market, especially in the post-Brexit era. Following the UK's exit from the European Union, travel insurance providers have had to navigate a more complex regulatory environment, especially for cross-border coverage. Previously harmonized rules under EU regulations, such as the Solvency II Directive and the Insurance Distribution Directive (IDD), are now subject to divergence, creating uncertainties for insurers operating across the UK and EU. This has led to increased administrative burdens, licensing complexities, and legal compliance costs. Additionally, travel insurers must stay updated with changing regulations around consumer protection, health data usage, and compensation rights (such as under the Package Travel Regulations). Any non-compliance could result in significant fines and reputational damage. Brexit has also impacted reciprocal healthcare agreements, leading insurers to update policy terms to reflect changes in access to the European Health Insurance Card (EHIC) system.
Key Market Trends
Rise in Demand for Tailored and Flexible Travel Insurance Plans
Modern UK travellers increasingly seek travel insurance that is personalized to their specific needs rather than generic, one-size-fits-all policies. This shift is driven by more diverse travel preferences, such as adventure tourism, luxury cruises, digital nomadism, and long-term international stays. Consumers are now looking for coverage that reflects the type, duration, and destination of their travel. For instance, a backpacker travelling across Southeast Asia may require different coverage than a retiree on a Mediterranean cruise. Insurers are responding by offering modular or customizable plans that allow policyholders to add or remove features like gadget protection, COVID-19 coverage, or cancellation due to political unrest. This trend reflects a broader push toward customer-centric insurance products that enhance value and satisfaction. Technology also plays a critical role, enabling online platforms to guide users through tailored policy options based on real-time inputs. As personalization becomes the norm, insurers that offer flexible, user-friendly, and clearly defined policies are likely to gain a competitive edge in the UK travel insurance market.
Digitalization and Technological Advancements
Digital transformation is rapidly reshaping the UK travel insurance industry, driven by rising consumer expectations for convenience, speed, and transparency. Insurers are increasingly adopting digital tools such as artificial intelligence (AI), machine learning, and chatbots to streamline policy purchases, automate claims processing, and offer 24/7 customer support. For example, AI is being used to assess risks, calculate premiums in real-time, and detect fraud, while blockchain technologies ensure secure data sharing and faster settlements. The rise of InsurTech startups has also disrupted traditional models by offering digital-first, mobile-friendly platforms where travellers can compare, purchase, and manage policies instantly. These tech-driven solutions appeal especially to younger travellers who prefer self-service options and value seamless digital experiences. Moreover, embedded insurance—where travel insurance is offered at the point of booking through airlines or travel platforms—is gaining traction, providing a smoother customer journey. As digital adoption continues to grow, insurers must invest in user-friendly interfaces, cybersecurity, and agile infrastructure to remain competitive and meet evolving customer expectations in the UK market.
Pandemic and Health-Related Concerns
The COVID-19 pandemic has permanently altered the landscape of travel insurance, leading to increased demand for policies that cover health emergencies, quarantine expenses, trip cancellations, and medical evacuations. UK travellers are now far more cautious and informed about potential health risks during international trips. This heightened awareness has made comprehensive health coverage a key component in choosing a travel insurance provider. As a result, many insurers in the UK have updated their offerings to include pandemic-specific clauses, 24/7 telehealth support, and flexible cancellation options. Additionally, insurers are offering tiered health plans, enabling customers to choose the level of protection they want based on the destination’s risk level. There is also increased demand for coverage related to mental health, especially for long-term or business travellers. To stay competitive, travel insurance providers must ensure transparent policy wording around exclusions and inclusions for epidemic and pandemic-related incidents. Moreover, partnerships with global health networks and digital health platforms are becoming common as insurers aim to offer more responsive and connected health support for travellers abroad. This trend reflects a long-term shift toward prioritizing health security in travel decisions and insurance products.
Segmental Insights
Type Insights
In the United Kingdom Travel Insurance Market, aviation dominates the segmentation by type, accounting for the largest share of policies issued. This dominance is driven by the high volume of international and domestic air travel originating from the UK, supported by major global airports such as Heathrow, Gatwick, and Manchester. Air travel involves a greater range of potential risks compared to other transport modes, including flight cancellations, delays, lost or damaged baggage, medical emergencies abroad, and the need for trip interruption or evacuation services. These risk factors make insurance coverage more essential and frequently purchased by air travellers. Moreover, the growing number of UK residents traveling overseas for tourism, business, or education has fueled consistent demand for aviation-related travel insurance. Airlines and travel agencies increasingly offer bundled travel insurance at the point of booking, further boosting market penetration. Additionally, recent global health crises, such as the COVID-19 pandemic, have heightened awareness of the importance of travel insurance among air passengers. In contrast, railway and bus travel—typically confined to domestic or short-distance routes—are perceived to carry lower risks, and therefore attract lower levels of insurance uptake. As such, aviation continues to lead the UK travel insurance market by a significant margin.
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Regional Insight
England, as the largest and most populous country within the United Kingdom, plays a central role in shaping the nation's economic, cultural, and political landscape. Home to over 56 million people approximately 84% of the UK’s total population England is a hub of innovation, commerce, and international connectivity. Its capital, London, is one of the world’s leading financial and cultural centers, attracting millions of tourists, students, and business travelers each year. England boasts a highly developed infrastructure, with an extensive network of airports, railways, and roads that facilitate both domestic and international travel. Major cities such as Manchester, Birmingham, Liverpool, and Leeds further contribute to the country’s regional diversity and economic strength. The presence of world-renowned universities, historical landmarks, and cultural institutions makes England a top global destination. Economically, England is a powerhouse, contributing the majority share of the UK's GDP. Its industries span finance, technology, healthcare, manufacturing, and creative arts. The service sector, particularly in finance and tourism, remains a major driver of growth. Additionally, England’s governance plays a key role in national policy-making through the UK Parliament located in Westminster. Given its size, influence, and population, England is a crucial driver in the dynamics of both the UK and broader global markets.
Recent Developments
- In 2024, UK-based insurtech platform Gigasure launched a new travel-focused Managing General Agent (MGA), known as Travel Insurance MGA. Leveraging advanced technology and data-driven insights, this MGA aims to deliver customized travel insurance solutions, enhance customer experience, and boost operational efficiency. The launch highlights a broader trend of growing specialization and innovation within the travel insurance industry, as providers adapt to evolving consumer expectations and dynamic market conditions.
- In 2024, Collinson, a global leader in travel experiences and loyalty programs, entered into a strategic partnership with World Nomads, a prominent travel insurance provider. Together, they launched a new Annual Multi-Trip (AMT) insurance product across the UK and Ireland, designed to enhance the customer journey with increased coverage limits, added benefits for both annual and single-trip policies, and the inclusion of SmartDelay™, a cutting-edge parametric service.
- In 2024, Allianz Partners UK was appointed as the official travel insurance provider for TUI’s UK operations, reinforcing its position as the leading travel insurance provider in the UK. This collaboration covers major brands such as Marella Cruises and Crystal Ski Holidays, offering TUI customers a choice between single-trip and annual policies. The partnership is supported by Allianz’s digital platform, featuring streamlined policy management and automated claims processing for an improved customer experience.
- In 2025, Managing General Agent (MGA) OneBefore, in collaboration with Freedom Insurance Services, has introduced a new travel insurance product named ‘Travel Europe’, specifically targeting leisure travelers visiting European destinations. This policy is notable for its inclusion of coverage for individuals with pre-existing medical conditions. The launch builds on the companies' earlier partnership for the One Tree Travel policy. Travel Europe will be distributed exclusively through Freedom’s newly launched travel insurance panel, reflecting both firms’ ongoing commitment to tailored and inclusive travel insurance offerings.
Key Market Players
- Aviva plc
- AXA UK & Ireland
- Allianz Partners (Allianz Assistance)
- Staysure Group
- Saga plc
- Direct Line Group
- Admiral Group
- AIG Europe (Travel Guard)
- Coverwise Ltd.
- Bupa Global Travel
|
By
Type
|
By
Source
|
By
Insurance Cover
|
By End User
|
By
Location
|
By
Region
|
|
|
- Bank
- Non-Banking
Financial Company (NBFC)
|
- Single
Trip
- Annual
Multi-Trip
- Long
Stay
|
- Senior
citizens
- Education
Travelers
- Backpackers
- Business
Travelers
- Family
Travelers
- Fully
independent Travelers
|
- Intracity
- Intercity
- International
|
- England
- Scotland
- Wales
- Northern
Ireland
|
Report Scope:
In this report, the
United Kingdom travel insurance market has been segmented into the following categories, in addition
to the industry trends which have also been detailed below:
·
United Kingdom Travel Insurance Market, By Type:
o
Railway
o Bus
o Aviation '
·
United Kingdom Travel Insurance Market, By Source:
o Bank
o Non-Banking Financial Company (NBFC)
·
United Kingdom Travel Insurance Market, By Insurance Cover:
o Single Trip
o Annual Multi-Trip
o Long Stay
·
United Kingdom Travel Insurance Market, By End User:
o Senior citizens
o Education Travelers
o Backpackers
o Business Travelers
o Family Travelers
o Fully independent Travelers
·
United Kingdom Travel Insurance Market, By Location:
o Intracity
o Intercity
o International
·
United Kingdom Travel Insurance Market, By Region:
o England
o Scotland
o Wales
o Northern Ireland
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in the United Kingdom travel insurance Market.
Available Customizations:
United
Kingdom Travel Insurance market report with
the given market data, TechSci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of
additional market players (up to five).
United Kingdom Travel Insurance Market is an upcoming report to be released
soon. If you wish an early delivery of this report or want to confirm the date
of release, please contact us at [email protected]