Travel insurance firms are expected to face a significant increase in the number of compensation claims made, it has been revealed.

According to the law firm Travelaw, as the financial crisis continues, insurers may witness a rise in the number of claims made.

Stephen Mason, Managing partner of the British firm stated that already there had been an increase in the number of claims filed over the winter.

The firm warned insurers that as the current economic climate continues to fall, more holidaymakers will ensure they get what they paid for.

He said: “On the one hand travel companies are facing more claims and on the other they have fewer staff to deal with them.

It’s been a pattern in the last few downturns. When times are hard and affording a holiday is pushing the budget, claims are much more likely.”

Furthermore, Perry Wilson, founder of InsureandGo stated that claim figures have already risen by over 50 per cent within the travel industry.

Research found that medical claims last year had soared by 58 per cent from 2007, with the number of claims for lost luggage and flight cancellations also increasing.

Wilson said: “Unfortunately the average claim value seems to be rocketing, which highlights just how important it is for people to have adequate travel insurance, particularly when times are tough.”