Middle East conflict not affecting travel insurance prices

The US-Iran war and wider tensions in the Middle East have not had a meaningful impact on either the quality or availability of travel insurance policies, new data from Defaqto has revealed.

Figures released by the firm have revealed that, for single-trip policies rated three stars or above by Defaqto, average prices have fallen marginally from £30 in January to £29 in May.

Annual multi-trip policies, meanwhile, rose by an average of £3 over the first five months of the year, standing at £73 in May.

The quality of available products has also not been affected by ongoing hostilities, with 74% of annual multi-trip and 76% of single-trip products currently holding a four or five-star Defaqto rating.

No sharp movement

Frances Luery, product manager at Defaqto, said: “The recent focus on geopolitical risk is a timely reminder that travel insurance is there to protect people when plans change, when medical treatment is needed abroad or when disruption creates unexpected costs.

“What is striking in our data is that the market has not seen a sudden price reaction to the crisis in the Middle East. Prices have been edging upward during 2026, but there was no sharp movement in March.”

She continued: “Quality cover is also widely available. Nearly half of the products we analysed carry a five star rating and the price difference between three star-or-above cover and five star cover is not as large as many consumers might assume.

“That matters because in travel insurance, the cheapest policy may not be the best answer. Consumers should consider whether the cover fits their trip, their destination, their health, the value of their holiday and the risks they are most concerned about.”