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  • Travel insurance premium split

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  • travel insurance premium split

    How the amount you pay is divided

    Trying to understand why your travel insurance premium costs what it costs can be confusing – especially when it goes up and down. It’s important to us that you know where your money is going. So we’ve broken it down to make it as simple and clear as possible.


    Claims - 62.7%

    On average, 63% of all premiums are paid out on claims. Paying claims is at the heart of what we do – that’s the single reason you buy insurance, so you can be assured that when you buy with us, that’s where the biggest chunk of your premium goes. We paid out over 87% of customers’ travel insurance claims in the last year.

    travel claims 62.7%

    Profit - 4.4%

    Every travel has to make a profit to exist – we're no different. But the profit we make is less excessive than you might think. The average travel insurance premium delivers just 4% of profit. That profit means we can keep on protecting you and your travel, year after year.

    travel profit 4.4%

    Insurance Premium Tax - 16.7%

    The Government adds tax to your insurance premium. It’s called Insurance Premium Tax, or IPT for short. Unfortunately, this is the one part of your premium we have no control over. However, we do work hard on making sure the Government understands the impact this tax has on customers and to persuade them that 20%* is plenty!

    travel insurance premium tax 16.7%

    Expenses (inc commission) - 15.7%

    It costs to keep the lights on. Like any travel, expenses are necessary to keep us running. That’s why some of your premium goes towards our employees’ salaries and the cost of our offices, as well as investing in the most innovative technologies to make your experience with us as smooth and simple as possible.

    travel expenses 15.7%

    Reinsurance/Industry Levies - 0.5%

    Like all insurers, we pay into various industry funds that have been set up to protect you. For instance, the Financial Services Compensation Scheme protects you against an insurer going bust and the Associated British Insurers drive best practice, transparency and high standards within the industry through relationships with the government, insurers and regulators.

    travel Reinsurance/Industry levies 0.5%

    *Calculations based on 2015, 2016 AXA travel Insurance Policies. *IPT is 12% on top of your premium but it makes up 10.7% of the overall cost to you. Percentages rounded to the nearest whole number.