Travel insurance prices in the UK showed no sudden spike following the escalation of the Middle East conflict. Market data from financial product research firm Defaqto shows median prices held broadly stable from February to May 2026. There was no sharp repricing after the crisis deepened in March.
The finding challenges the assumption that geopolitical shocks automatically translate into immediate premium increases for consumers.
Defaqto’s month-by-month analysis found median top-five prices by cover level held steady between February and March 2026. For five star-rated annual multi-trip cover, the median top-five price was £99 in January. It peaked at £104 in March before returning to £99 in May. The equivalent single-trip price peaked at £46 in March and fell back to £43 in May.
Lower-rated cover told a similar story. Annual multi-trip cover rated three star or above was £70 in January. It rose to £76 in February and held there through April before easing to £73 in May. The gap between three-star-or-above and five-star cover in May stood at £26 for annual multi-trip policies and £14 for single-trip policies.
Defaqto also found that 42% of annual multi-trip products and 46% of single-trip products carry a five-star rating. When four-star and five-star products are combined, those figures rise to 74% and 76%, respectively.
Frances Luery at Defaqto said the data points to a market that has absorbed the geopolitical situation without a sharp pricing response.
“What is striking in our data is that the market has not seen a sudden price reaction to the crisis in the Middle East,” she said. “Prices have been edging upward during 2026, but there was no sharp movement in March. In fact, the month-by-month figures suggest a relatively stable pricing environment for consumers.”
The stable pricing picture comes as consumer priorities shift. Separate research from AllClear Travel Insurance found that 68% of UK adults planning a holiday this summer will prioritise top-quality cover or strong policy features. Just 15% said they would shop primarily on price.
Luery said the price gap between cover tiers is smaller than many consumers might expect. “Quality cover is also widely available. Nearly half of the products we analysed carry a five-star rating, and the price difference between three-star-or-above cover and five-star cover is not as large as many consumers might assume.”
The stakes around cover quality have become more concrete in recent months. When the FCDO updated its Lebanon travel advice in early 2026, some travellers found their policies excluded claims from changes in official guidance. Standard war exclusions left a number of consumers without recourse.
The scale of unmet need became clear after the February 28 strikes on Iran. Demand for “cancel for any reason” cover surged 18-fold, according to data from insurance marketplace Squaremouth. Standard policies exclude disruptions tied to acts of war, a provision widely understood in the industry but largely unknown to consumers until it matters.
Regulators have also turned their attention to the gap between consumer expectations and what policies cover. In December 2025, the Financial Conduct Authority (FCA) broadened its intervention in the home and travel insurance market after consumer group Which? filed a super-complaint. The FCA committed to reviewing claims handling and how insurers communicate exclusions at the point of sale.
Brokers advising clients ahead of the summer season should account for cancellation, curtailment, medical emergencies, baggage, and policy exclusions. Defaqto’s data suggests quality cover remains within reach for most travellers, but understanding what a policy includes and excludes has never been more relevant.
