Almost a quarter (22%) of people now travel abroad uninsured – up from 19% a year ago, Abta research reveals today (Thursday).
The “worrying” trend is being driven by younger travellers with more than a third (35%) of 16-24 year olds and 36% of 25-34 year olds saying they did not take out insurance.
Twenty nine percent of 16-24 year olds and 31% of 25-34 year olds say that cost is the principal reason they fail to take out travel insurance.
Abta argues this is a false economy with comprehensive annual policies available for as little as £60 and the potential for medical costs to run into thousands of pounds.
The association’s research has demonstrated that consumer take-up of insurance has declined markedly since regulations around the sale of travel insurance as an ancillary product were introduced by the previous government in 2007.
It says there is no evidence that consumers have benefited from increased regulation and continues to argue for the relaxation of the “burdensome” regulations by calling the government to review its position.
Abta recently submitted a consultation response to the Treasury calling for the regulation to be repealed.
The association continues to work with tourism minister Helen Grant, her officials and industry regulator the Financial Conduct Authority to examine ways in which the burdens placed on the industry when selling insurance could be reduced so that insurance is more readily available at the point of sale.
Abta chief executive, Mark Tanzer (pictured), said: “It is a worrying trend that we are seeing an increase in the number of people travelling overseas uninsured.
“Younger travellers are driving this increase through a mixture of misunderstandings and a desire to save money.
“Abta and its members have expressed concerns that the regulations mean fewer travel businesses are selling insurance at the point of sale, and ultimately this appears to have resulted in fewer holidaymakers taking out the appropriate insurance.
“We will continue to make our members’ views clear to government. In the meantime, we urge members to familiarise themselves with their rights and responsibilities in informing customers about travel insurance.”