Very few UK travel insurers are offering full COVID-19 coverage, with only 9.8% of consumers selecting travel insurers with the top level of COVID-19 coverage in 2020, according to GlobalData. Research by This Is Money found that 99% of policies on the market at the start of 2021 exclude cancellation cover if the policyholder’s home location is placed in lockdown before they travel. The percentage of policies not excluding cancellation had fallen to 1% in 2021 from 6% in 2020.
This Is Money found that HSBC, Barclays, FirstDirect, DirectLine, and Zurich Private were the providers offering the most comprehensive full COVID-19 coverage. The 1% of policies that do cover this offer refunds on flights and accommodation in the event that a customer cannot travel because their home country is in lockdown. GlobalData’s 2020 UK Insurance Consumer Survey found that the combined travel insurance market shares of these providers was 9.8% in 2020. However, not every policy offered by these providers would include the full level of coverage.
Go deeper with GlobalData
The worry for consumers with insurers providing a range of different coverage options will be clarity. Insurers have seen disputes surrounding COVID-19 pay outs throughout product lines in 2020, leading to negative press and consequently reduced trust. Insurers need to ensure that if consumers prioritise price and select less comprehensive coverage, they are made aware that they are not covered for certain risks, such as being unable to travel due to lockdown.
Consumers who have seen travel plans continually disrupted throughout 2020 are likely to be wary when booking holidays in the short term, and many will want high levels of coverage to ensure peace of mind when booking flights and accommodation.
This suggests that these insurers offering the 1% of full policies on the market in the UK should see strong take-up throughout 2021 if customers realize that these policies provide more comprehensive cover. The UK’s roadmap out of lockdown and successful vaccine rollout to date should make insurers think this is a risk worth taking on as they look to rebuild their travel insurance sales after a damaging 2020.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
Related Company Profiles
HSBC Holdings Plc
Barclays Wealth Management