An average of 1,086 Britons lost luggage at airports every day last year1, or one every 80 seconds, according to new research from leading travel insurer InsureandGo (www.insureandgo.com), which has identified the top five travel insurance claims for 2008. These were medical problems (1); lost or stolen baggage (2); cancellation of flights (3); lost or stolen money (4) and travel delay (5). The company estimates that UK travel insurers paid out on over 1.45m claims in these five categories last year totalling some £553m1 in value.
Lost or stolen baggage was the second most common cause for travel insurance claims last year, with an estimated 396,000 Brits contacting their travel insurer to submit claims under this category. The settlement value of these claims totalled £37.9m, up 8% on 20071.
Research from InsureandGo reveals that an estimated 44,000 of these victims of lost luggage, or one in eight (12%) of them, think it was stolen2. The findings also reveal that one in eight (12%) of all adults distrust baggage handlers at airports3, and that 21% are so worried about losing their bags that they admit to having deliberately packed less so they can only take hand luggage onto the flight, in an effort to reduce the risk of baggage loss4.
- Brits made an estimated 396,000 lost luggage travel insurance claims in 2008
- The cost of travel insurance medical claims rockets by 58%
- UK travel insurance industry paid out more than an estimated £553m for the top five claims in 2008
Perry Wilson, founder of InsureandGo, commented: “Lost baggage remains one of the most common problems for holidaymakers. The average lost luggage claim cost has risen quite substantially, which suggests that either people are packing more expensive luggage, or they have started exaggerating the value of it.”
The greatest number of travel insurance claims in 2008 was for medical problems, totalling well over half a million (565,500). Shockingly the total estimated cost of medical insurance claims was £383.6m, 58% higher than in 2007. This is largely because of a 42% rise in the average value of medical claims rather than the number of claims1.
There has also been a big increase in claims for flight cancellations. In the year of the ill-fated launch of Heathrow’s Terminal 5, there were over 240,000 claims for flight cancellation, a 23% rise on 2007. The average value of these claims also increased by 22%, creating a huge 51% increase in the total value of these claims paid out by the UK travel insurance industry, from £77m to £116m1.
Top claim category |
Estimated number of claims UK travel insurance industry received in 2007 |
Estimated average cost of claim in this category |
Estimated total value of claims |
Medical problem |
565,500 |
£678.28 |
£383.6 million |
Lost or stolen baggage |
396,400 |
£95.66 |
£37.9 million |
Cancellation of flights |
240,750 |
£482.99 |
£116.3 million |
Lost or stolen money |
126,300 |
£83.20 |
£10.5 million |
Travel delay |
121,600 |
£35.67 |
£4.3 million |
Perry Wilson continued: “Medical claims are still the most costly for the travel insurance industry. Unfortunately the average claim value seems to be rocketing, which highlights just how important it is for people to have adequate travel insurance, particularly when times are tough.”
Standard (Silver) Prices
Europe, including 17 days winter sports
Annual, one adult up to three under 18s = £38
Annual, two adults up to six under 18s = £68
Worldwide including US/CAN and 17 days winter sports
Annual, one adult up to three under 18s = £54
Annual, two adults up to six under 18s = £84
-Ends-
Notes to editors:
Policy prices correct as at 10 March 2009.
1) Based on InsureandGo data and its market share.
2) InsureandGo data combined with research conducted by GfK NOP between 12-15th September 2008. 1004 UK adults aged 16+ were interviewed over the telephone.
3) on a scale of 0 to 10, where 0 was “don’t trust them at all” and 10 was “trust them a great deal”, 12% of British adults chose a score of 4 or less.
4) Research was conducted by GfK NOP between 12-15th September 2008. 1004 UK adults aged 16+ were interviewed over the telephone.
About InsureandGo
InsureandGo (www.insureandgo.com) was established in 2000 and has grown rapidly to become the UK’s largest direct travel insurance specialist. Over two million holidaymakers a year choose to cover their travels with its low cost, high value policies.
All InsureandGo policies cover children under 18 for free and include over 40 adventure sports, while its annual policies include winter sports automatically.