Travel insurance policies increasing in number

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Defaqto, an independent financial research company, has just released results of research that show there was an increase of 9.5% in the number of travel insurance policies available on the market throughout 2009. The number went up from 930 to 1,018 in 2009, despite the amount of overseas travel dropping sharply by 16% in the same period.

All this is great news for consumers. More travel insurance policies means more choice for people who are going on holiday, and means that travellers are more likely to find a suitable insurance policy for them.

This is especially important when it comes to older travellers and people with pre-existing medical conditions. There has traditionally been a lot less choice for these specialist insurance policies, and prices are a lot higher as a result. Increased competition leads to increased choice and lower premiums.

The recession has led to less travel overall because people have less disposable income, and unemployment is also up. The value of the pound has also been hit, meaning going abroad is not quite the bargain that it once was.

On top of the fact that less people are travelling, travel insurance companies face another problem due to the weakness of the pound. The head of research at Defaqto, Brian Brown, said that the fall in value of the pound means any claims made for overseas care are now more expensive for insurers.

Despite the increasing number of policies, Defaqto also pointed out that there are actually just 44 underwriting organisations operating. It also revealed that nearly 50% of all policies are underwritten by the top five companies.


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#1 Right information, I have gone through a research on the same subject, and seen about same(.oo7 % differ) result, it shows the accuracy maintained while survey...!! on travel insurance
Posted by samdriscoll on 25/10/2010 at 13:29
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