In 2025, Brits are eager for new travel experiences.
According to data from the Association of British Travel Agents (ABTA), “people are open to exploring somewhere new – with almost half (45%) saying they are likely to try a country they haven’t been to before next year, up from 41% last year, and 48% saying they’re looking to go to a city or resort they’ve not previously visited, rising to 60% for both 25-34 year olds and 35-44 year olds.”
Oliver Slaney (pictured), operations manager and underwriter at Pulse Insurance, believes now is the time to give customers tailored insurance that meets their evolving expectations: “Customisation is key, customer appetites and expectations have changed with OnDemand TV, next day deliveries on packages - clients want the option to pick and choose add-ons and levels of cover depending on their needs for travel insurance, and insurers will need to adapt to be able to present offerings which meet these needs. There is a lot of competition in the travel insurance world, so being able to offer slightly nuanced benefits or perks is key, and customers want to feel that they are tailored to.”
As Slaney explains, balancing changing customer needs with sustainable premiums is an ongoing challenge: “The balance is between obtaining a premium that suits the insurer and the client. I feel that clients are far more aware of travel insurance since the pandemic. The insurer took a bit of a hit with cancellation and medical expense claims, inflationary pressures are always present, but the industry is adapting on claims, automation of technology and software utilisation, keeping man hours to a minimum, which enables competitive products.”
He also points to an increasingly unpredictable global risk landscape: “The other challenge we face is what is happening in the world right now with active conflicts taking place very close to home in Ukraine and the Middle East - we see the recurring risk posed by climate change and the risk of wildfires and other natural disasters. The global political and economic uncertainty means plans may need to change at short notice.
“This all-increases risk for insurers but also makes it even clearer why travel insurance is needed.”
Slaney believes that brokers have a vital role in adapting to this evolving landscape: “Finding the right and relevant product for their client, identifying needs based on trips, customer appetite and ensuring they get the right sums assured based on their trips,” are also crucial elements of a broker’s role, he suggested.
He also stressed the importance of brokers offering education and support: advising clients on their rights and being on hand to support and explain the cover.
Slaney notes that customers are increasingly aware of the medical component of travel insurance. Recent ABI data supports this trend, stating: “The total amount for medical claims reached £291 million in 2023, and the average medical claim stood at £1,724. However medical claims can be much higher.”
Slaney also highlighted the importance of informing customers about exclusions, particularly as medical travel increases. “More and more customers are conscious of their appearance and are choosing to travel for cosmetic treatment abroad,” he said. “They may also be travelling for medical treatments because they are aware of lengthy wait times for their treatment via the NHS at home. So understanding that travel for the purpose of receiving medical treatment is a key exclusion on the general travel market needs to be conveyed.”
According to a 2024 study by the International Travel and Health Insurance Journal: “Between 150,000 and 250,000 UK residents travel overseas annually for treatments such as cosmetic surgery, fertility services, and dental procedures.”
Looking ahead, Slaney expects technology to play a major role in transforming the customer experience. “Quote and buy tools with clear sign posting will be more prevalent,” he said. “The additions of add-ons, lounge access will be more appealing. Apps on phones will grow and be more customisable and user friendly.”
He also predicts a more nuanced approach to underwriting: “Underwriting will be able to obtain more data, claim trends based on clients, ages, locations, occupations, and able to tailor pricing to ensure risk is properly assessed. Flexibility is key…. there are lots of good products out there but make sure that the policy you buy covers you for what you will be doing – if you are going high level mountaineering or sailing across the Atlantic then you will need specific cover.”
