The Association of British Insurers (ABI) has revealed that its members paid out £472 million across more than 500,000 travel insurance claims in 2024, highlighting both the value of comprehensive cover for travellers and the rising pressures on insurers.
Medical expenses were the most common reason for claims, accounting for 34% of cases and totalling £262 million. While the average medical claim stood at £1,528, the report included extreme cases such as one UK traveller who required over £1 million in treatment and repatriation after an emergency in the US.
Read the full article on ITIJ: ABI reports £472m travel insurance payouts in 2024
The Consumer Message: ABI’s ‘Eight to Embark’
To help travellers avoid disappointment, the ABI reminded holidaymakers of its eight golden rules:
- Buy before you fly – purchase cover at the time of booking.
- Check the cover, not just the price – especially for adventure activities.
- Read the small print – exclusions matter.
- Declare medical conditions – to avoid invalidating cover.
- Follow Foreign Office advice – travelling against guidance can void policies.
- Know your rights – airlines or tour operators may be liable for disruption.
- Carry EHIC/GHIC cards – limited European cover, not a replacement for insurance.
- Know how to claim – keep documents and emergency numbers handy.
These points may seem obvious, but claim statistics show that even experienced travellers can overlook them.
NIS Perspective – What Does This Mean for Insurers?
The ABI’s figures underscore two realities for the industry:
- Travel insurance is indispensable for consumers, given soaring medical costs and complex global risks.
- Insurers face unprecedented operational pressure in managing hundreds of thousands of claims efficiently and fairly.
For insurers, the challenge is not just scale, but also clarity. Customers are being tripped up by preventable issues: failing to declare medical conditions, missing exclusions, or misunderstanding their rights. Every rejected claim erodes trust in the product.
That’s why automation, AI, and customer-first design are so important:
- Automation reduces manual touchpoints in claims and improves turnaround times.
- AI-driven triage ensures urgent cases (like overseas medical emergencies) are prioritised.
- Smart policy journeys guide customers through disclosures and cover choices, reducing the chance of errors at the point of sale.
- Integrated assistance tools provide real-time support when customers need it most.
As Elliott Draga, our Chief Commercial Officer at NIS, notes: “Rising claims volumes aren’t just a cost issue, they’re a customer experience issue. The ability to process high volumes quickly, consistently, and transparently is now a competitive differentiator.”
