As the UK approaches the summer travel season, insurers are being advised to prepare for an expected increase in claims activity.
Simon Hoskin (pictured above), director of travel – accident & health at CSAL, Gallagher Bassett, outlined several steps insurers can take to address the rising volume of travel-related incidents and to respond to longer-term risks reshaping the sector.
In recent years, the travel insurance market has been adjusting to shifts in travel behaviour following the pandemic, while also contending with staffing pressures and more frequent climate-related disruptions. These issues are expected to contribute to a higher volume of claims over the coming months.
According to Gallagher Bassett’s whitepaper, 78% of UK insurers identified “clarity of communication” as the top factor influencing customer satisfaction. Insurers are being encouraged to reassess how they communicate policy terms and exclusions to prevent disputes when claims are rejected.
Hoskin noted that customers often express surprise when certain events are not covered, suggesting that gaps in understanding remain. Ensuring accessible and transparent policy information can reduce the volume of contested claims.
Digital tools such as mobile applications, websites and AI-driven support can assist in making information easier to access, while freeing up staff to focus on complex inquiries.
In 2024, ABI reported that travel insurers processed 574,000 claims, with total payouts reaching £511 million. Medical expenses constituted the largest portion, totalling £291 million, with an average medical claim of £1,724.
Over the past five years, the most common reasons for travel insurance claims among Brits were: trip cancellations (35%), lost belongings (31%), emergency medical treatment (27%), and flight delays (25%).
Individuals aged 71 to 75 had average claims of £1,830 in 2024, while those aged 36 to 40 had average claims of £518. Correspondingly, single-trip policy premiums averaged £190 for the older group and £38 for the younger group.
As of September 2023, customer satisfaction with travel insurance policies reached 87%, the highest since the survey's inception in 2018.
Gallagher Bassett also urged insurers to examine their operational readiness during peak periods. Hoskin recommended flexible staffing models that can scale quickly in response to surges, as well as the establishment of additional resources that can be activated following major disruptions.
Recent events, including a technical failure in the UK’s air traffic control system and a fire at Heathrow Airport, led to large volumes of travel claims. In such cases, insurers must be able to maintain service levels and handle increased demand. Hoskin noted that beyond staffing numbers, personnel should be equipped to manage high-pressure situations with the necessary expertise.
Engaging claims management partners is one option for managing operational pressure, he said, with third-party professionals helping to expand internal capacity and improve claims processing during surge events.
Climate-related travel disruptions are becoming more common, with consequences for insurers across the accident & health space. Industry observers have linked increased turbulence to rising atmospheric temperatures, underscoring the need for a review of in-flight risk coverage.
The 2024–25 UK storm season is expected to see a greater number of named storms, raising the potential for multiple simultaneous travel disruptions. More frequent flight delays and cancellations linked to extreme weather events are already impacting claims volumes.
A report from Gallagher Bassett also indicated that 60% of UK insurers are seeing growing demand for products addressing climate-specific exposures. Hoskin said this points to a broader trend in which insurers may need to re-evaluate policy coverage and consider tailored options to reflect changing risk profiles.
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