One-in-five travellers ventured abroad uninsured in 2011 although sales of annual travel insurance policies have increased during the past 12 months with 30% of travellers purchasing annual policies up from only 13% in 2010.
Despite the bleak economic outlook, the travel market saw an increase of £2 billion injected into it in the 2010–11 financial year. This trend is set to grow, with 25% of travellers booking through the high street, up from 17% in 2010.
Greg Lawson, Head of Retail at travel insurance provider Columbus Direct, said: “This growth in high street sales is believed to be fuelled by the 15–24 age group, giving an opportunity for high street brands to re-invent themselves through the use of social media and other technology to build trust and enhance the travel agent experience.”
“In addition, there has been a growth of investment in mobile booking platforms as tablets and smartphones proliferate. Travel companies and capital investors are seeking mobile opportunities so travel insurance companies need to be equally mobile to ensure they remain connected to this point of sale.”
Another age group which has proved resilient to the current climate is the over-55s or baby boomers. This group is considered higher risk for insurance purposes but 30% of those aged 55–64 took more than four trips in the UK last year and 10% took more than four holidays abroad.
An increasing travel trend is the authentic holiday experience which includes conservation and adrenaline ‘holidays’ or remote destinations. These types of holidays have been on the rise but sometimes have limited access to quality or nearby medical facilities, often needing specialist or long-distance extraction or repatriation as well as having a higher holiday cost.
Lawson continued: “Our primary role as a travel insurance provider is to ensure we understand what our customers want and endeavour to offer that at a price they believe is appropriate.
“The risks of travel are always changing in one way or another and any insurance industry should change with the times and our products should reflect both the way customers want to buy insurance and what they want covered.”
