Currently, the average travel insurance claim stands at £2,090. Of those adults who have had to claim on their insurance, three fifths (62%) said they had to cover the full costs themselves and then recoup this back from their insurers later down the line.
Furthermore, a tenth (11%) said they had to pay out for part of the claim and then request the rest back from their travel insurance provider at a later date, which took an average of six weeks.
When looking at the affects that this has on UK travellers, three fifths (59%) of adults who’ve claimed on their insurance said they had to chase their insurer in order to get their money back.
A quarter (26%) had to borrow money from family, a quarter (25%) had to take money out of their savings and a tenth (10%) said they went into debt due to the cost of their claim, despite having travel insurance.
Impact on UK holidaymakers
• A quarter 26% had to borrow money from family and friends
• A quarter 25% had to take money out of their savings
• 12% said it caused them and their family a lot of stress
• 10% went into debt in order to cover the costs
• 3% say they no longer see the point in travel insurance
The research is revealed as Co-op launches Travel Insurance as a means of disrupting the market, offering a new product designed by its members.²
Available now, the new travel insurance product offers cashless medical expenses, meaning customers will not have to pay out themselves for any medical treatment – a first for the general insurance market.
Colin Butler Head of Travel Insurance at the Co-op said: “The fact that 1 in 10 people have ended up in debt as a result of their travel insurance claim has highlighted to us a clear issue in the market.
“Our research shows that for a quarter of claimants, their insurance claim related to medical expenses, making this type of claim higher than any other.
“For that reason, we’ve worked with our members across the Co-op to create a product which covers medical expenses upfront, to ensure that our customers aren’t left having to find the money for their medical treatment.”
Mark Summerfield, CEO, Co-op Insurance said: “This is an exciting time for the Co-op as we introduce Travel Insurance to our portfolio of products. Having recognised a gap in the market, we’ve worked with our members across the Co-op, to build a product which is fair, inclusive of all ages and medical conditions.
“Furthermore, we’re the first general insurer to pay medical expenses up front, ensuring that our customers are not left out of pocket at what can already be a stressful time.”
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