’This growth in annual travel insurance is reflective of a growing confidence and for many, a return to their normal calendar of travel,’ says chief executive officer
Annual travel insurance policies are set to become the fastest growing sector of personal lines insurance over next 12 months.
This was according to new research published by Smart Money People, which revealed that annual travel insurance policies could see up to 15% of growth in the next year.
The Insurance Uptake Score data for H2 2023 – a biannual barometer of personal lines purchasing decisions in the UK based on consumers’ reported likelihood to continue with, purchase, increase, reduce or cancel their cover – also showed that health insurance and home insurance were the second and third lines with the highest potential growth.
Travel insurance’s potential for growth was primarily driven by a 17% increase in new purchases and a 6% growth in existing holders increasing cover – either by increasing limits (39%) or through the addition of add-ons (42%).
Smart Money People found that, in the next 12 months, 25% of existing annual travel insurance policyholders said they were likely to switch provider at renewal, however.
The H2 2023 Insurance Uptake Score data was based on a survey of 2,144 UK adults conducted between 28 July and 3 August 2023.
Smart Money People noted that the strong potential growth for travel insurance was reflective of more “adventurous travel plans”, activities and the need to tailor cover to personal requirements.
“It is also likely that post-covid, consumers now have a greater awareness of policy details and are demanding higher coverage levels for peace of mind,” the firm continued.
Smart Money People’s chief executive officer, Jacqueline Dewey, added: “Many international borders were only fully opened in 2022 and, even then, consumer travel habits had been seriously disrupted with many people hesitant to book multiple trips.
“This growth in annual travel insurance is reflective of a growing confidence and, for many, a return to their normal calendar of travel.”
Home insurance, for buildings rather than contents, was the line with the second highest potential growth over the next 12 months – its potential growth was placed at 13%.
Smart Money People found that 14% of the surveyed home insurance customers said they would likely change their coverage in the upcoming year. Exactly 9% of them said this would be via increasing their cover, while 5% said they would reduce their indemnity.
Of the 9% of respondents who said they would increase their cover, 63% said they would increase their limits, while 26% said they would add more optional products.
Motor insurance, which has seen premiums rocket recently, achieved a potential growth percentage for the upcoming year of only 3% – the lowest potential growth score of the 10 personal lines sectors the firm examined.
Exactly 11% of motor customers said they would likely change their coverage in the next 12 months, with 7% saying they would increase their cover and 5% saying they would reduce it.
Beyond the world of insurance, I've ventured into creative pursuits that promote inclusivity and representation.
My written work has found a home in publications such as Orange Magazine, Peahce Project, and others.View full Profile