1. Travel Insurance and Assistance in Major Global Markets
Travel Insurance and Assistance
in Major Global Markets
Report Prospectus
March 2011
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2. Travel Insurance and Assistance in Major Global Markets
Prospectus contents
Page
What is the research? 3
What methodology has been used? 4
How do travel companies surveyed break down? 5
What is the report structure? 6
What are the key features of the research? 7
How can the research be used? 8
How can the PartnerBASE™ be used? 9
Who can use the research? 10
What are some of the key findings? 11-14
What is the cost and format? 15
How can the research be purchased? 16
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3. Travel Insurance and Assistance in Major Global Markets
What is the research?
Finaccord’s report titled Travel Insurance and Assistance in Major Global Markets is the first
comprehensive study about the market for travel insurance and assistance in ten diverse countries
- namely Australia, Brazil, Canada, China, India, Japan, Russia, South Africa, South Korea and the
US - which between them account for just over 50% of both the world’s population and its GDP.
Collectively, stand-alone international travel insurance and assistance across these ten markets is
estimated by Finaccord to have been worth USD 5.79 billion in gross written premiums in 2010. In
all but one of these countries, this sector is growing, and in some cases this expansion is rapid.
These markets are also evolving quickly in terms of product design and distribution trends, with
new channels emerging and partnerships changing on a regular basis.
For this study, Finaccord’s research program covered nearly 1,200 travel trade companies and 400
banks across the ten countries, combining the results of this detailed investigation with other
market data and interviews with travel insurance providers to produce the most comprehensive
report ever published on the topic.
The report is accompanied by a PartnerBASE™ dataset that details the relationships between
nearly 1,200 travel trade firms (and 400 banks) and their respective travel insurance and assistance
providers.
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4. Travel Insurance and Assistance in Major Global Markets
What methodology has been used?
Finaccord’s investigation into the travel insurance and assistance market draws on several sources of
data, of which the largest element was an extensive survey of 1,184 travel trade companies across
the ten countries, which were contacted between September and November 2010 to find out:
• if they distribute travel insurance and assistance policies;
• if so, how these policies segment between those covering international and domestic travel;
• if so, which operating model is used (e.g. single partner, multiple partners, broker or captive);
• and, if so, with which insurance and assistance partner(s) do they operate.
These travel trade companies included airlines, ferry / railway operators, online travel portals and
student travel / gap-year specialists, as well as mainstream travel agents and tour operators. Similar
research was carried out for 400 banks and other lending institutions, in order to accurately
understand the bank provision of stand-alone travel insurance. The report also includes the top-level
findings from a separate study (published in November 2010) focusing on the packaged provision of
travel insurance and assistance with payment cards and bank accounts. This study involved the
detailed analysis of more than 5,600 banking products across the same ten global markets.
Finaccord also analysed the size, segmentation and dynamics of both the underlying outbound travel
markets and the markets for stand-alone international travel insurance and assistance, using a
combination of published statistics and interviews with leading insurers.
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5. Travel Insurance and Assistance in Major Global Markets
How do travel companies surveyed break down?
Segmentation by type of travel trade entity Segmentation by country
Railway
operator, 2.1%
Automotive Ferry operator,
association, 2.4% Australia, 4.7%
United States,
2.0% 16.9% Brazil, 4.8%
Airline, 9.8%
Canada,
12.8%
Online travel
portal, 7.2% South Korea,
9.0%
Student / gap-
year travel
agent, 2.4%
South Africa,
4.5%
China, 17.0%
Travel agent / Russia, 12.8%
tour operator,
74.2% India, 8.4%
Japan, 9.1%
Source: Finaccord
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6. Travel Insurance and Assistance in Major Global Markets
What is the report structure?
Executive Summary: provides a concise evaluation of the report’s principal findings.
Introduction: discusses rationale, research methodology, sample breakdown and definitions.
Global Overview: presents a comprehensive overview of the ten markets for international travel
insurance and assistance, including analysis of: the underlying outbound travel markets (for holiday
and business travel); the size of the stand-alone international travel insurance and assistance
markets (for single trip and annual policies) by premiums and by number of policies; the influence
of national wealth and other socio-economic variables; travel trade and bank distribution of stand-
alone policies, including market concentration data; the leading international providers of travel
insurance and assistance; and forecasts to 2014.
Specific country chapters (10): for each of the ten countries covered, an in-depth analysis of the
market for travel insurance and assistance, including: the underlying foreign travel market,
segmented by destination and by purpose of trip; the market for stand-alone international travel
insurance and assistance (for single trip and annual policies), by premiums and by number of
policies; the distribution of stand-alone policies by travel trade companies and banks, including
partnership and competitor analysis; the role of packaged distribution with payment cards and bank
accounts; other significant distribution channels; consideration of the importance of travel insurance
and assistance policies for domestic trips; and forecasts to 2014.
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7. Travel Insurance and Assistance in Major Global Markets
What are the key features of the research?
Key features of this report include:
• quantification of the market size and segmentation for stand-alone international travel insurance
and assistance across ten major global markets: how much is each market worth, and where is the
fastest growth occurring?
• segmentation of stand-alone international travel insurance policies between single trip and annual
policies: how are annual policies developing in each country, and what are the obstacles to their
growth?
• analysis of competitor share of partnerships: which providers of travel insurance have the most
relationships with travel trade companies, which providers have been most successful with banks,
how does this vary by country, and which local relationships are the most significant?
• consideration of other distribution channels in each country: are banks active in selling stand-alone
travel policies, or do they prefer to package travel cover with payment cards or bank accounts, and
what role is played by direct distributors, brokers and other distribution partners?
• availability of an accompanying PartnerBASE™ dataset that fully documents every travel
insurance partnership identified by Finaccord for nearly 1,200 travel trade entities and 400 banks.
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8. Travel Insurance and Assistance in Major Global Markets
How can the research be used?
You may be able to use this report and the accompanying PartnerBASE™ dataset in one or more of
the following ways:
• to compare the size, growth rates and future prospects of travel insurance and assistance markets
across ten diverse geographies;
• to understand the supply structure for travel insurance and assistance, including the operating
models being used, the level of market concentration and the relative importance of national versus
international providers;
• to identify distribution opportunities, whether by channel or by specific partner;
• to appreciate which markets offer the best long-term potential, which are already saturated with
competitors, and what product or distribution innovations are occurring;
• to gain access to a single comprehensive source of information outlining the distribution
arrangements for nearly 1,200 travel trade companies and 400 banks, which also identifies around
140 insurance and assistance partners and 95 ultimate underwriters.
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9. Travel Insurance and Assistance in Major Global Markets
How can the PartnerBASE™ be used?
Filter by type of Identify insurance
organisation Select country Choose operating model providers
INSURANCE AND ASSISTANCE FOR INTERNATIONAL TRAVEL
Organisation Type Country Product offered? Operating model Immediate partner(s) / brand(s)
Ertzog Travel agent / tour operator Russia Yes Single partner VSK Insurance House
Escape Travel Travel agent / tour operator Australia Yes Single partner Cover-More
escapes.ca Online travel portal Canada Yes Single partner RBC Insurance
Et-china.com Online travel portal China Yes Single partner Chartis China
Euras Tours Travel agent / tour operator Japan Yes Single partner JI Accident & Fire Insurance Company
Look up specific
distributors
Source: Finaccord PartnerBASE
Note - The PartnerBASE also includes data concerning the provision of insurance and assistance for domestic
travel and, for both international and domestic policies, it specifies the underlying insurer(s) and parent(s) of the
underlying insurer(s), in addition to the immediate partner(s) / brand(s) as indicated above. For distributors based in
China, Japan, Russia and South Korea, the local (non-Roman) alphabet names are also given.
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10. Travel Insurance and Assistance in Major Global Markets
Who can use the research?
1. Specialist travel insurance and assistance providers: this study is a comprehensive source of
information about ten major global markets, providing unique information and breaking new
ground by covering countries not previously researched;
2. Multi-line insurers: although specialist providers are often strong in travel trade distribution,
there are opportunities for other insurers to gain market share in both this and other channels,
and this report provides guidance about these possibilities;
3. Travel companies and other existing or potential travel insurance intermediaries: in some
countries, sales of travel insurance policies are shifting away from the traditional types of travel
trade entity. This report helps you to plan your response to this and to consider what might be
the channels of the future;
4. Banking organisations and other payment card issuers: this report helps you to evaluate the
attractiveness of offering travel insurance to your customers, either as a stand-alone product or
as an enhancement packaged with payment cards and bank accounts;
5. Management consultancies: are you helping a travel company, assistance firm or insurer with
its future plans for the travel insurance and assistance market in any or all of these ten
countries? Save time researching the subject yourselves by accessing this publication.
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11. Travel Insurance and Assistance in Major Global Markets
What are some of the key findings?
1. All markets are dominated by single trip policies, rather
than annual policies, especially China and India
Single trip Annual
Australia
Brazil
Canada
China
India
Japan
Russia
South Africa
South Korea
USA
Average
0% 20% 40% 60% 80% 100%
Approximately split of stand-alone international travel
insurance and assistance policies sold, 2010
Source: Finaccord research
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12. Travel Insurance and Assistance in Major Global Markets
What are some of the key findings? (cont.)
2. At a forecast average growth rate per annum of 9.7% up to 2014, the number
of holiday trips made by Brazilians will outgrow the number of business trips
Trips (m)
10
8
Business (CAGR, 4.5%)
6
4
Holiday (CAGR, 9.7%)
2
0
2010e 2014f
Source: Ministério do Turismo, World Tourism Organization, Finaccord estimates
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13. Travel Insurance and Assistance in Major Global Markets
What are some of the key findings? (cont.)
3. In most countries, the leading three providers account for over a half of travel
trade distribution relationships with concentration at its highest in South Africa
100%
80%
All other partners
60% 4th partner
3rd partner
40%
2nd partner
Leading partner
20%
0%
Australia Brazil Canada China India Japan Russia South South United
Africa Korea States
Source: Finaccord PartnerBASE
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14. Travel Insurance and Assistance in Major Global Markets
What are some of the key findings? (cont.)
4. Key findings from the executive summary include:
• the combined value of the stand-alone, international travel insurance and assistance markets in
the ten countries researched was an estimated USD 5.79 billion in gross written premiums in 2010,
having grown from an estimated USD 4.25 million in 2006;
• in terms of its outright value, the US is the largest of the ten markets analysed, followed in
descending order by Canada, Japan, Australia and South Korea;
• however, when measured in terms of real (deflated) growth between 2006 and 2010, the US is
ranked only fifth, behind China, India, Brazil and Russia;
• in fact, the number of foreign holiday and leisure trips undertaken by Chinese citizens increased
by an average of 18.3% per year between 2003 and 2010, thanks partly to the expansion of the list
of state-approved destination countries to which Chinese tourists are permitted to travel;
• in spite of the fact that Indian consumers undertake more than 650 million domestic trips every
year; domestic travel insurance and assistance policies are not widely available from India’s travel
trade.
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