Travel insurance payouts reach £472m for 2024 – ABI

Insurers paid out £472m across more than 500,000 travel claims in 2024, according to new figures published by the ABI.

The trade association’s analysis of its members’ information found that medical expenses is the most common reason for travel claims, accounting for 34% of all travel insurance claims submitted to insurer members last year. This compares to 29% in 2023.

Payouts across 2024’s medical expenses claims volume totalled £262m, with an average settlement of £1,528.

The ABI highlighted one instance in which an insurer member paid more than £1m to cover the cost of emergency hospital treatment and repatriation from the US.

Providing ‘peace of mind’

Fraser Lyall, policy advisor for general insurance at the ABI, said: “With summer at its peak, there’s no better time to prepare a packing list for your next getaway. While suncream and passports will certainly be necessary, travel insurance is one other essential that shouldn’t be overlooked.

“Travel insurance can offer you peace of mind, knowing that you’re covered for things like emergency medical care should you fall ill or suffer an injury abroad. Be sure to read the full terms and conditions and disclose any pre-existing medical conditions to make sure you have the right cover for your needs. Speak to your insurer if anything is unclear.”

To support consumers, the ABI has published its ‘Eight to Embark’ guidance – a set of travel insurance tips designed to encourage best practice when insurance customers are buying cover.

These include purchasing a policy as soon as a trip is booked, carefully checking policy wording, declaring pre-existing medical conditions, consulting Foreign, Commonwealth and Development Office (FCDO) advice and ensuring that holidaymakers know how to make a claim if needed.

The ABI said this guidance aimed to reduce risks for travellers and raise awareness of the role of travel insurance as a financial safety net.