Global instability is reshaping how British travellers buy travel insurance, with safety and coverage quality overtaking price as the primary purchasing consideration for this summer's holidyamakers, a shift with significant implications for insurers, underwriters and brokers.
Research from AllClear Travel Insurance, conducted after the outbreak of conflict in the Middle East, found that 68% of UK adults planning a holiday this summer will prioritise either top-quality cover or strong policy features. Just 15% said they would shop primarily for the cheapest option available.
The findings land at a pivotal moment for the sector. The UK travel insurance market reached approximately £980 million in premiums in 2024, with forecasts predicting nearly 15% growth in the foreseeable future, fuelled by rising demand for customised coverage and technological advancements. Longer-term projections place the market at US$4.21 billion by 2030, rising at a compound annual growth rate of 14.04%.
The consumer shift away from price-led purchasing signals a potential opportunity for providers of premium and specialist products. Specialist brands are already carving out defensible niches. Staysure, for example, focuses on travellers over 45 with medical histories, while insurtech disruptors such as Gigasure are winning younger demographics through transparent pricing and pay-as-you-go modules. Younger travellers, especially under-35s, often skip insurance due to perceived irrelevance and greater risk tolerance.
According to the Association of British Insurers (ABI), its members paid out £472 million across more than 500,000 claims in 2024.
Medical expenses were the most common cause, accounting for 34% of all claims, with total medical payouts reaching £262 million and an average settlement of £1,528. One insurer reported a single claim exceeding £1 million after a policyholder required emergency hospital care in the US and subsequent repatriation to the UK.
Against this backdrop, AllClear's data recorded a three-year high in the proportion of travellers with pre-existing medical conditions willing to pay more for comprehensive cover, rising from 23% to 35% over the past 12 months.
Garry Nelson, head of corporate affairs at AllClear Travel Insurance, said the research reflected a genuine shift in consumer mindset but warned that non-disclosure continues to undermine the market.
"The conflict and tensions in various parts of the world have understandably triggered a mindset-change, with many holidaymakers now placing far greater emphasis on being safe abroad," he said. "For everyone, now is a time to focus on making sure they have quality, comprehensive travel cover before they travel."
The data, however, pointed to a stubborn gap between intent and behavious. Some 31% of respondents said they would be tempted to withhold medical information to reduce their premium, while 26% of those with pre-existing conditions admitted to knowingly failing to declare them. Separate research from Gigasure found that 24% of UK holidaymakers knowingly fail to disclose pre-existing conditions, a trend the Financial Ombudsman Service linked to a 19% increase in rejected claims.
The non-disclosure issue sits within a broader context of rising regulatory scrutiny. In September 2025, Which? submitted a super-complaint to the Financial Conduct Authority (FCA), claiming that insurers demonstrated poor claims handling and inappropriate sales practices in the travel insurance market.
The FCA responded in December 2025, committing to expand its work to improve market standards and pledging to monitor consumer outcomes and hold firms to account. The regulator's own claims-handling review of eight travel insurers found numerous areas requiring improvement, with the Consumer Duty raising the bar further on firms to demonstrate fair outcomes for customers.
Meanwhile, Nelson's message to the market is direct. "We encourage all holidaymakers, especially those with medical conditions, to declare all their medical conditions when choosing the travel cover that best meets their needs," he said.
