Charles Taylor reports rise in travel insurance claim costs

Charles Taylor Assistance said that it had handled a record number of travel insurance claims in 2025, with volumes increasing 24% year-on-year as the company expanded its work with travel insurers.

The assistance and claims provider said the increase followed new business from both existing and new insurance clients, meaning the rise in cases it handled does not necessarily represent a corresponding increase in claims across the wider travel insurance market.

Average claim values also increased, however, rising 8% year on year to £1,458. The increase provides a clearer indication of growing claims severity at a time when insurers and assistance providers are facing pressure from the cost and complexity of travel claims.

Spain generated the largest number of claims handled by Charles Taylor Assistance in 2025, followed by France and the UK. Cancellations, medical emergencies and lost or damaged personal belongings were the most common causes of claims.

Charles Taylor expects the number of travel claims it manages to increase by a further 12% during 2026. Cases are handled by its claims and medical assistance specialists in the UK and Mallorca.

The company said it has invested in staff development and digital capabilities as volumes have increased, including expanding claims management capacity and providing customers with greater choice over how and when claims are submitted.

Jody Baker, Chief Executive of Charles Taylor Assistance, said insurers were increasingly looking for claims services capable of managing cases across the full claims journey.

“The increasing cost and complexity of travel claims is driving insurers to seek out end-to-end claims management solutions,” Baker noted.

Charles Taylor’s operations bring together claims handlers with medical assistance specialists, doctors and fraud investigators, reflecting the range of expertise that can be required when managing travel claims.

For insurers, the distinction between claim frequency and severity is significant. Charles Taylor’s 24% increase in managed volumes was partly driven by its own client growth, while the separate 8% increase in average claim value points to higher expenditure on the cases it handled.

That combination is placing greater emphasis on effective claims management, particularly where medical cases require assistance and clinical expertise alongside conventional claims handling.

In other news, mobile phones account for almost a quarter of technology-related travel insurance claims, according to new claims data from Gigasure.