This report focuses on the personal travel insurance market in the UK. It analyses the current business environment and the main factors which will most likely impact on future demand for both single-trip and annual multi-trip policies. In addition, the report assesses the size of the market by volume and value, provides market size forecasts to 2007 and presents market share estimates of the leading travel insurance underwriters, based on industry feedback and taking into consideration recent major account changes.

These contractual amendments as well as the withdrawal of several key underwriters from the travel sector are testament to a hardening and increasingly volatile market. Intensifying competition, rising claims costs and lower investment yields are making it progressively more difficult for travel insurers to achieve satisfactory profit margins. Nevertheless, while some major insurers have reduced their exposure in the sector, other relative newcomers are making significant inroads.

There has also been an influx of new companies selling travel insurance over the past few years. Mintel's consumer research indicates that people are increasingly turning to alternative sources in order to obtain the best deal. Furthermore, Mintel's research shows there is an increasing trend for credit card and current account providers to offer 'free' annual cover as part of a premium package or extra benefit, and for consumers to buy their insurance over the Internet.

Hence, the other main areas covered in the report are distribution and promotion, the consumer and the future. The Consumer section examines holiday preferences and travel insurance buying behaviour by socio-economic and demographic groups. By drawing conclusions from the previous sections, The Future section discusses the main opportunities and threats which are likely to make an impact on future profit margins.

Other Mintel reports of relevance to this market include:

- Holidays - The Road to Recovery, Special - UK Report, January 2003

- Online General Insurance, Finance Intelligence - UK Report, January 2003

- Home Insurance, Finance Intelligence - UK Report, July 2002

- Packaged Account Banking, Finance Intelligence - UK Report, June 2002

- International Tourism Forecasts, Leisure Intelligence - European Report, June 2002

- Travel Agents, Retail Intelligence - UK Report, May 2002

- Motor Insurance, Finance Intelligence - UK Report, May 2002

- Pet Insurance, Finance Intelligence - UK Report, December 2001

and the forthcoming:

- Direct & Internet Selling, Finance Intelligence - UK Report, April 2003

- Motor Insurance, Finance Intelligence - UK Report, May 2003.