DUBLIN--(BUSINESS WIRE)--The "UK Travel Insurance Market 2019: Consumer Research Report" report has been added to ResearchAndMarkets.com's offering.
This report will examine the motivations, experiences and opinions of the UK travel insurance customer. It focuses primarily on annual multi-trip insurance, defined as multi-trip (annual) travel insurance which covers for multiple trips (e.g. all trips over the period of a year). However, the report also discusses places single trip insurance, i.e. insurance taken out for one specific trip.
The research will identify and analyse consumer attitudes towards travel insurance, look at the claims experience of policyholders, and investigate why they choose one route to purchase over another. In addition, it will explore how price sensitivity is impacting the market. Essentially, the report studies the policyholder's customer journey from the point where they recognise a requirement to make a purchase to the point when they are a customer, could make a claim, and may ultimately consider switching to a new provider.
34.6 million consumers (or 54% of all adults) have multi-trip travel insurance now or have had single trip insurance cover over the past year. Of these individuals, 29.1 million own standalone, separate travel insurance policies (i.e. they are not bundled into packaged bank accounts or other insurances). Single trip insurance (40% of consumers) is more popular than multi-trip insurance (25%). Adults with insurance are primarily those who have travelled abroad in the past year: 22% of adults who travelled abroad over the last year had no form of insurance.
Collectively, individuals owning standalone policies spent over 600 million on travel insurance premiums (gross written premiums) in 2018. The annual consumer travel insurance market for standalone, separate policies, as measured in terms of gross written premiums, has been in decline for the past few years.
Each year, around nine-in-ten policyholders start their customer journey from the standpoint of already owning multi-trip, annual travel insurance. They are repeat customers, i.e. they are not buying multi-trip insurance for their first time (they are not First-Time Buyers - FTBs). Their customer journey decision is to switch or renew: most ultimately renew. Just over one-in-ten policyholders switched provider in the past year and around one-in-seven were FTBs, new to the market. Over seven-in-ten policyholders renewed with the provider they used for travel insurance in the previous year.
For most consumers who ultimately renew their policies, renewing is best thought of as an action taken only after the policyholder has tried to get a better deal from another provider or from the current provider. A large majority search for alternatives and/or haggle with an incumbent provider to get a better deal before they finally decide to renew. Renewing, therefore, involves many of the same actions as a Switcher would undertake but with a different final outcome (staying rather than leaving).
Other interesting findings contained in the report are:
- Price comparison websites are the focus of deal discovery and are important purchasing channels
- Across all adults with any type of travel insurance (single trip or multi-trip), PCWs were the main channel via which policies were purchased. However, the importance of the PCW is much higher in the single trip policy market than it is in the multi-trip market. In the multi-trip market, sales direct to the provider are the leading sales channel.
- When buying multi-trip insurance, consumers focus first on the cover provided and secondly on price, but when buying single trip insurance the focus is on price first and cover second.
- Most travel insurance policyholders will negotiate to get a good insurance deal and there is little difference between policyholders based on the type of travel insurance policy they own. The desire to negotiate is strong for all types of policyholder, even those whose main priority is to cover or buying from a well-known brand.
- Consumers who own multi-trip travel insurance find the experience satisfying and largely pain-free and the same can be said of the claims process
- Almost one-quarter of multi-trip insurance policyholders are thinking of switching in the next year, with switching being strongly price-led
Key Topics Covered:
1. Executive Summary
3. Profile of the Policyholder
4. How Policyholders Approach Insurance
5. The Customer Journey Begins
6. Price, Cover Or Brand
7. Being A Policyholder
8. Ending The Journey: Customer Loyalty and Switching
9. Market Size and Trends
For more information about this report visit https://www.researchandmarkets.com/r/tssm5z