COVID-19 hits the travel insurance market
02 Jun 2021
Single trip travel insurance hit the hardest by COVID-19
The 2021 results from the IRN Research Travel Insurance Consumer Research Report 2021, shows that compared with the result from our 2019 report, 2021 has seen a significant decline in the number of overseas travel trips taken, with the duration of trips also shortening. Despite this, ownership of multi-trip insurance held up well: in 2021, 22% of all consumers owned multi-trip travel insurance, compared with 25% in 2021. This relatively small decline, however, reflects the continued coverage of travel insurance in packaged bank accounts. Fewer policyholders in 2021 owned multi-trip cover via standalone policies compared with 2019, while the percentage owning via packaged bank accounts increased. This suggests passive ownership – i.e., ownership not directly related to taking a trip aboard – increased in 2021 compared with 2019.
While multi-trip insurance ownership held up reasonably well, ownership of single trip insurance declined very significantly. In 2019, single trip insurance was owned by 40% of all consumers over the previous year. In 2021, this had declined to just 15%.
The Travel Insurance Consumer Research Report 2021
This report examines the motivations, experiences and opinions of the UK travel insurance customer. It focuses primarily on annual multi-trip insurance, although the report also discusses in places single trip insurance. The research will identify and analyse consumer attitudes towards travel insurance, look at the claims experience of policyholders, and investigate why they choose one route to purchase over another. In addition, it will explore how price sensitivity is impacting the market. Similar research was run in 2019 and this report compares and contrasts the findings.
For this report, IRN Research commissioned research from MIS Group’s UK panel. The research was structured so that 2,002 consumers aged 18+ were asked if they owned an insurance policy. This generated 441 individuals who owned a multi-trip travel insurance policy and 653 individuals who owned any type of travel insurance (multi-trip or single trip). Similar research run in 2019 generated 510 individuals with multi-trip travel insurance and 1,093 individuals who owned any type of travel insurance (multi-trip or single trip).
This report (64pp) and the detailed dataset of all survey results with a demographic analysis is available directly from IRN Research, priced at £1000. Discounts for multiple report purchases, report only, dataset only, or purchases of extracts are available.