Travel insurers paid out nearly half a billion pounds in claims last year, with medical expenses driving much of the cost, according to the latest data from the Association of British Insurers (ABI).
Figures from the trade body showed members settled more than 500,000 claims in 2024, worth £472 million in total. That represents one of the highest levels of travel insurance payouts on record, underscoring the importance of cover for UK travellers heading abroad.
Medical expenses were the largest source of claims, accounting for 34% of all cases in 2024, up from 29% in 2023. In value terms, medical claims cost insurers £262 million, more than half the overall total. The average payout for medical treatment overseas was £1,528, though costs can escalate sharply in some cases. One insurer reported a single claim exceeding £1 million after a policyholder required emergency hospital care in the United States and repatriation to the UK.
The rise in medical claims poses challenges for the insurance sector. With treatment costs abroad continuing to increase, insurers are under pressure to balance affordability for customers with the need to cover large and unpredictable claims. The ABI data reinforces concerns that premiums may come under upward pressure if claim costs remain on this trajectory.
Beyond pricing, the figures also highlight the importance of accurate risk assessment and disclosure of pre-existing conditions. Insurers are likely to continue refining underwriting practices and developing specialist products for customers with complex health needs, reflecting both regulatory scrutiny and demand for more tailored cover.
Non-medical claims, including cancellations, delays and lost possessions, made up the remainder of the £472 million paid out. While individual payouts were smaller than for medical treatment, their sheer volume still added significantly to insurers’ overall claims burden.
The ABI said the figures show how quickly costs can mount for travellers without insurance. Emergency treatment abroad often runs into tens of thousands of pounds, and in some cases hundreds of thousands, particularly in destinations such as the US.
With claims on the rise, insurers will need to adapt products, manage pricing carefully, and ensure policyholders understand the value of cover. For customers, the message is clear: travel insurance is no longer a nice-to-have, but an essential financial safeguard.
