Price competition among travel insurers has not deterred new entrants from coming into the market, according to the financial research company, Defaqto.
In its latest report, Defaqto claims that there are now over 175 separate distributors fighting for less than £700m of business and concludes the consequent downward pressure on premiums will inevitably mean that some companies will be forced out of the market.
Brian Brown, head of insight at Defaqto and author of the report commented: “Prices across the market have been falling for the last three years and it is inevitable that some insurers will be forced out of the market. However, should there be decision taken to regulate sales through travel agents later this year there is the possibility that intermediaries and direct writers could benefit from the business that could become available if some agents decide to stop selling insurance”.
