Travel insurance claims soar to highest level since 2010

UK-travel-insurance-claims-highest-since-2010

The Association of British Insurers has revealed that the number of travel insurance claims made in 2017 increased by 30,000 year-on-year to 510,000, costing £385 million and amounting to one claim every minute throughout the year.

This is the highest amount paid since the £455 million Icelandic ash cloud pay-outs of 2010 and was largely driven by a significant rise in cancellation claims.

After a slight (£2 million) increase, medical expenses still make up a majority of the £385 million claims paid, despite an 11% increase in the value of claims for trip cancellations from £130 million to £145 million. Medical expense continue to be the most expensive type of claim, with an average of nearly £1,300 and many claims climbing to the tens of thousands of pounds.

The significant increase in cancellation claims was driven by notable airline disruption, restrictive bad weather at home and abroad, as well as the cost of the average family holiday increasing by more than £500 in 2017 according to some estimates. This further highlights the importance of buying your travel insurance as soon as you book your holiday – not at the last minute.

The key statistics

510,000 claims made in 2017 costing £385 million – more than £1 million every day. This represents a year-on-year increase of 30,000 claims and £16 million.

159,000 travellers requiring medical treatment were supported by insurers costing £201 million. One Brit required £90,000 of treatment for a fractured rib and punctured lung, whilst another required a £20,000 pay-out to treat a blocked intestine. Even a smaller injury, such as damage to a knee ligament, cost as much as £3,800 to treat.

£145 million was paid out on 174,000 claims for cancelled holidays (up from 159,000 in 2016), whilst 86,000 people received £17 million of support following their baggage being delayed and money lost whilst travelling.

Medical expenses therefore accounted for 52% of claims costs, cancellations accounted for 38% and lost baggage or money accounted for 4%.

The cost of medical expenses far outweighed any non-medical claims. For example, a millennial’s average medical claim was three times more expensive than their average non-medical claim (£261 compared with £812).

Commenting on the latest statistics, the ABI’s Policy Adviser for Travel, Charlie Campbell, said:

“Travel insurance acts as your guardian angel when overseas and should be an essential element of your holiday shopping list. Insurers are paying out £1 million every day to cover the unexpected costs of illness, injury or cancellation.

“Medical expenses can often cost tens of thousands of pounds, whilst the large increase in cancellation claims shows just how important it is to purchase your cover as early as possible. Our question to consumers today is: can you afford to not have travel insurance?”