Travel insurance market remains slow

Despite many clear examples of the need, many continue to travel uninsured.

Travel Insurance News - 30/09/2010

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Despite many stark examples this year of the need for travel insurance, a worryingly-high number of British travellers are still choosing to travel without sufficient cover. The most dramatic example of the risks to travellers was presented by the Icelandic volcano episode, which led to major headaches and, in many cases, painful travel bills for UK holidaymakers.

A raft of reports has also been published in the British press this year about the plight of travellers caught out by their lack of adequate travel insurance. However, the latest figures show some worrying trends amongst those cancelling travel insurance policies. In fact, travel insurance was found to be the type of cover most likely to be cancelled over the past two years.

The latest data, presented in a survey by YouGov SixthSense, shows that two-thirds of those who cancelled their travel insurance in the past did so in the recession. The report found that 69 per cent of those who cancelled travel insurance blamed ‘coverage-related’ reasons. Only 23 per cent blamed the cost of the policy. This suggests that many policy-holders were finding similar levels of cover from other sources. One possible conclusion is that customers are increasingly attracted to the travel cover included with current accounts.

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