One claim every minute - travel insurance payouts highest since 2010

Last year’s claims were largely driven by a significant rise in cancellation claims and mark the highest amount paid since the £455 million Icelandic ash cloud payouts of 2010.

After a slight (£2 million) increase, medical expenses still make up a majority of the £385 million claims paid, despite an 11 per cent 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.

Key statistics:

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).

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?”