The British
travel insurance market is fine fettle, with British holidaymakers snapping up new deals, new research has revealed.
A study from market research firm Datamonitor has argued that the surging numbers of Britons looking to travel abroad, fuelled by the rise of budget airlines, is driving the travel insurance market higher.
With cheap flights has also come the habit by Britons of taking more than one trip abroad a year, which is also a driver in the growth of the travel insurance industry, particularly in annual insurance that can cover all travel within a year.
The travel insurance market in the UK grew by 1.4 per cent to £709 million in 2006, according to Datamonitor.
The research firm expects that by 2011 the UK travel insurance market will be worth around £838, a 20 per cent increase from last year's figure.
'The UK travel insurance market continues to benefit from the desire of the British public to travel abroad, though competitive conditions have dampened growth,' said Andrew Haislip, author of the report, said.
As premium rates are 'hardening' in other markets, Mr Haislip also argued the same could happen in the travel insurance market if the competition remains intense, but there were yet to be any clear indications of what will happen.
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