Travel insurers buck the trend with 9.5% rise in policies
Demand for overseas travel has declined in the UK as a result of the state of the economy, belt tightening by consumers, rising unemployment and a fall in the value of sterling.
According to a new report from Defaqto’s head of research, Brian Brown, overseas travel by UK residents fell by almost 16% in 2009, with the number of overseas short breaks taken seeing a particularly sharp decline.
However, the number of travel insurance policies available has increased by 9.5% during the past year, from 930 to 1,018.
The financial research company also warns that the fall in the value of sterling has increased the cost of claims that insurers have to pay overseas, and the report therefore predicts a “bumpy ride” for travel insurers over the next couple of years.
Defaqto’s research reveals that there are currently 44 separate underwriting organisations or partnerships underwriting the core travel insurance policies, with almost 50% of all policies underwritten by the top five underwriters.
Underwriter market share is as follows: AXA Insurance UK 14.9%; Europ Assistance Holdings (Irish branch) 10.2%; White Horse Insurance Ireland 8.9%; Mondial Assistance Europe N.V. 8.0%; Chartis Insurance UK Limited 7.7%.
Category: Insurance News, Travel Insurance News
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