- 78% of Brits take out insurance for their international trips, compared to 88% in Sweden and 55% in Australia.
- Since 2020 and Covid, the number of travel insurance policies taken out has jumped by 24 points in the UK.
- With an average travel insurance premium of £39, the UK is one of the least expensive countries in this regard, far behind the United States (£163) and Australia (£116)
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The travel insurance penetration rate: how does the UK rank in the world?
The penetration rate, or the percentage of outbound travellers who purchase insurance, is a critical metric reflecting market maturity and consumer risk perception. In 2025, the travel insurance penetration rate in the UK stands at an impressive 78%, significantly outpacing the global average of 45% and marking a substantial recovery and growth from 62% in 2015. This figure underscores a profound shift in consumer behaviour, particularly in the post-pandemic era.
The travel insurance penetration rate: how does the UK rank in the world?
The high penetration rate in the UK is the result of a mature travel market, heightened awareness of international healthcare costs, and a cultural norm of seeking financial protection. The most significant driver has been the post-COVID landscape, which catapulted the rate from a low of 54% in 2020 to 78% by 2025—a remarkable 24-point increase. This surge signifies that travel insurance has transitioned from a discretionary purchase to an essential component of trip planning for the vast majority of British travellers.
Compared to international peers, the rate in the UK (78%) is among the highest, rivalling the Netherlands (77%) and significantly ahead of markets like the United States (40%), where insurance uptake is less embedded in travel culture. The forecast suggests a continued upward trend, with the rate in the UK projected to reach 82% by 2030. This indicates the market is approaching saturation, with future growth likely to stem from product innovation and upselling rather than capturing uninsured travellers.
Travel insurance claims in the UK: Frequency, types, and credit card share
Understanding the frequency and average cost of claims is essential to grasp the risk landscape for travellers in the UK. This data reveals a clear distinction between common, lower-cost incidents and rarer, high-cost emergencies, which collectively shape the structure and pricing of insurance products.
The claims data for the the UK market highlights a critical distinction between frequency and severity.
Trip cancellation stands out as the most common cause for a claim, demonstrating its importance as a core feature for consumers. However, the most significant financial risks stem from medical incidents.
While less frequent, an average medical expense claim costs over £1,200, and a repatriation case can escalate to nearly £5,000 on average.
This high-cost, low-frequency risk profile explains why policies in the the UK offer multi-million-pound medical cover as standard.
For insurers, this underscores the need to balance pricing for frequent, predictable claims like baggage loss against the severe, unpredictable costs of overseas medical emergencies.
Travel insurance offered through premium bank accounts and credit cards is a significant feature of the the UK market, acting as a default layer of protection for millions of consumers. Understanding its share of the market relative to its contribution to claims is crucial for assessing its effectiveness and identifying its role alongside standalone policies.Best vacation packages
Preferred Travel Insurance Types, Destinations, and Profiles in the UK
Understanding the modern traveller is key to navigating the the UK insurance market, as preferences are shaped by travel frequency, destination risk, and demographic needs. The following analysis breaks down the most popular policy formats, the destinations driving insurance uptake, and the key consumer profiles defining the market today.Best vacation packages
The types of travel insurance cover subscribed to in the UK
In the United Kingdom, travelers demonstrate a clear preference for comprehensive, multi-risk policies that provide a robust safety net against a wide range of potential issues. The standard features of policies in the UK reflect a mature market where consumers expect high levels of protection, particularly for medical emergencies and trip cancellations.
The coverage preferences in the the UK market are clearly defined by a demand for high-value protection.Best vacation package
The extremely high medical expense limits – often reaching £20 million for worldwide cover—are a direct response to traveler awareness of exorbitant healthcare costs in destinations like the USA.
Similarly, cancellation cover up to £7,500 aligns with the average cost of family holidays, making it a critical component.
While baggage cover is standard, its limitations on electronics highlight a potential gap that consumers must manage separately.
The increasing integration of value-added services like 24/7 assistance and teleconsultation shows a market shift towards not just financial protection, but also practical, on-the-ground support for travelers.
What are the average travel insurance claim amounts in the UK?
An analysis of average claim amounts provides a clear picture of the financial risks travelers face and demonstrates the core value proposition of travel insurance. The data for the UK reveals a significant disparity between high-frequency, low-cost incidents and rare but financially crippling emergencies.Best vacation packages
The figures clearly illustrate the primary function of travel insurance: to safeguard against catastrophic financial loss.
While claims for baggage (£320) and trip cancellation (£800) are relatively common and financially manageable for some, the cost of medical expenses (£1,250) and particularly repatriation (£4,800) can be devastating.Best vacation packages
These high-cost events, though less frequent, are precisely why comprehensive cover is essential.
The data from the UK shows that the true value of a policy lies not in compensating for minor inconveniences, but in providing a critical safety net against severe medical emergencies that can occur anywhere in the world.
This reinforces the industry’s focus on robust medical and assistance coverage as the cornerstone of any credible travel insurance product.
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