British holiday makers have been warned to take out travel insurance before they jet off abroad for a vacation this year. The warning came from American Express which revealed that more than 14.5 million Brit travellers will travel without any type of cover this year. Those who do travel without insurance will risk paying up to thousands in medical bills and repatriation costs if something were to go wrong.

American Express said that those who could not afford to take out travel insurance should maybe think again about going away: “If people are planning more than one trip this year, they should opt for an annual travel insurance policy instead; it will save them more money in the long run and help them to avoid being financially stung while they should be relaxing on holiday.”

Meanwhile, backpackers have also been warned to take out travel insurance, after a recent poll revealed that 1.3 million uninsured travellers have had their belongings stolen whilst holidaying abroad.

There are also concerns for travel insurance agents in America. In the wake of the recent news regarding AIG and the Federal Government loan bailout travel insurance companies have received several calls from concerned travel agents.

TravelInsured in America stated: “While we cannot predict the outcome of the financial crisis affecting AIG or AIG Travel Guard, it is important that travel professionals be prepared and have other travel insurance options to recommend to their clients.”

They further commented on how travel agents need to be thorough and careful on behalf of their customers: “Each travel insurance provider has an insurance carrier that backs its programs. Rating agencies will give you the insurance carrier's financial strength, credit ratings and future financial outlook.” It was also stated how education and information is the key: “Education and preparedness can provide travel agents and their client’s peace of mind. Travel agents should become familiar with their programs and be prepared to address their customers' requests for alternative suppliers.”

Meanwhile, figures released by the Guild of Travel Management Companies (GTMC) records all forms of travel transaction in Britain, from booking a flight, purchasing travel insurance to hotel reservations.

Among the more surprising statistics were a 23% increase in rail bookings and a massive rise in other transactions including booking travel insurance, airport car parking and passport services. Up 27% to 676,000 transactions.

GTMC stated that they were surprised with the results: “In the end, 2007 turned out to be even better than we had hoped. At the end of our third quarter, I was predicting that we would top 13 million transactions. In fact, that proved to be a conservative estimate, as we ended the year just 40,000 bookings shy of the 14 million mark.”

The company also believed that passengers seemed to be ignoring the fears of an economic slowdown or a recession: “While our leaders were warning of a spectacular slump, Britain’s community took no notice and got on with the job of boosting the UK economy.”