Travel Insurance Distribution Channels: Finding the right mix for European markets
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Travel Insurance Distribution Channels: Finding the right mix for European markets

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Presentation at Uniglobal Travel Insurance Forum in Prague, 5-6 December 2013. ...

Presentation at Uniglobal Travel Insurance Forum in Prague, 5-6 December 2013.

Finaccord estimates that the global market for stand-alone travel insurance and assistance was worth USD 11.9 billion in 2012, with around 200 million policies sold.

By 2016, this market is expected to be worth USD 14.7 billion, with policy sales increasing to around 243 million.

Where will much of this growth occur, and how does Europe fit in to this global picture?

What local challenges are faced when entering and operating in particular markets?

How do the distribution channels used for travel insurance vary between countries and evolve over time?

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Travel Insurance Distribution Channels: Finding the right mix for European markets Travel Insurance Distribution Channels: Finding the right mix for European markets Presentation Transcript

  • Distribution Channels for Travel Insurance and Assistance Distribution Channels for Travel Insurance and Assistance: Finding the Right Mix for European Markets Presentation at the Uniglobal Travel Insurance Forum Prague, December 5th – 6th 2013 © Finaccord Ltd., 2013 Web: www.finaccord.com, E-mail: info@finaccord.com 1
  • Distribution Channels for Travel Insurance and Assistance Introduction  Finaccord estimates that the global market for standalone travel insurance and assistance was worth USD 11.9 billion in 2012, with around 200 million policies sold.  By 2016, this market is expected to be worth USD 14.7 billion, with policy sales increasing to around 243 million.  Where will much of this growth occur, and how does Europe fit in to this global picture?  What local challenges are faced when entering and operating in particular markets?  How do the distribution channels used for travel insurance vary between countries and evolve over time? © Finaccord Ltd., 2013 Web: www.finaccord.com, E-mail: info@finaccord.com 2
  • Distribution Channels for Travel Insurance and Assistance Relative size of outbound travel markets Estimated number of foreign trips lasting one night or more, 2012 (million) 100 87 83 80 69 60 54 40 34 26 20 15 8 6 0 France Germany © Finaccord Ltd., 2013 UK USA Australia Brazil Web: www.finaccord.com, E-mail: info@finaccord.com Russia India China 3
  • Distribution Channels for Travel Insurance and Assistance Recent growth trends in foreign travel Compound annual growth in the number of foreign trips, 2008-2012 20% 16.1% 15% 9.1% 10% 8.2% 5.6% 5% 3.3% 0.3% 0.3% 0% -0.5% -5% -6.1% -10% France Germany © Finaccord Ltd., 2013 UK USA Australia Brazil Web: www.finaccord.com, E-mail: info@finaccord.com Russia India China 4
  • Distribution Channels for Travel Insurance and Assistance Distribution channels used for stand-alone travel insurance Travel trade Insurance company Bank or similar Insurance broker Insurance aggregator Other 100% 80% 60% 40% 20% 0% France Germany © Finaccord Ltd., 2013 UK USA Australia Brazil Web: www.finaccord.com, E-mail: info@finaccord.com Russia India China 5
  • Distribution Channels for Travel Insurance and Assistance Types of travel policy held by consumers in six key European countries Stand-alone (single trip) Stand-alone (annual) Included with holiday or travel ticket Packaged with banking product More than one type of policy . 100% 80% 60% 40% 20% 0% France © Finaccord Ltd., 2013 Germany Italy Netherlands Spain Web: www.finaccord.com, E-mail: info@finaccord.com UK Average 6
  • Distribution Channels for Travel Insurance and Assistance Case study: Availability of stand-alone travel policies from various types of distributor in Italy, 2012 % of organisations offering stand-alone travel cover Travel agents / tour operators 84.3% Online travel specialists 43.8% Airlines 75.0% Ferry operators 58.3% Railway operators 100.0% Banking organisations 4.9% Specialised card providers 5.6% Total 44.9% 0% © Finaccord Ltd., 2013 20% 40% 60% Web: www.finaccord.com, E-mail: info@finaccord.com 80% 100% 7
  • Distribution Channels for Travel Insurance and Assistance Case study: Proportion of credit card products in Italy that feature various types of travel benefit, 2012 Comprehensive travel cover 20.6% Travel inconvenience cover 46.1% Travel health cover 2.2% Travel assistance 9.4% Travel accident cover 47.9% 0% © Finaccord Ltd., 2013 20% 40% 60% Web: www.finaccord.com, E-mail: info@finaccord.com 80% 100% 8
  • Distribution Channels for Travel Insurance and Assistance Case study: Competitor share of partnerships for standalone travel insurance and assistance in Italy, 2012: based on partnerships with travel trade organisations Global Assistance, 3.1% Unipol Assicurazioni, 2.1% others, 6.3% Fondiaria Sai, 4.2% Mondial Assistance, 45.8% AMI Assistance, 15.6% Europ Assistance, 22.9% © Finaccord Ltd., 2013 Web: www.finaccord.com, E-mail: info@finaccord.com 9
  • Distribution Channels for Travel Insurance and Assistance Provision of insurance by mobile phone operators % of 255 country-specific operators offering each type of insurance and assistance Mobile phone insurance Mobile gadget insurance Bill payment protection insurance Identity protection insurance / assistance Motor insurance Household insurance Travel insurance / assistance Accident insurance Health insurance Life insurance Home assistance Legal assistance Medical assistance Road assistance Miscellaneous insurance / assistance 36% 13% 4% 1% 1% 2% 0% © Finaccord Ltd., 2013 9% 9% 3% 6% 6% 5% 10% 7% 7% 10% 20% Web: www.finaccord.com, E-mail: info@finaccord.com 30% 40% 50% 10
  • Distribution Channels for Travel Insurance and Assistance Provision of travel policies by mobile phone operators % of country-specific operators offering travel insurance / assistance Unweighted 6% 6% Europe Africa & Middle East Weighted 0% 0% 12% Asia Pacific 32% 37% Latin America North America 32% 0% 0% 0% © Finaccord Ltd., 2013 10% 20% 30% Web: www.finaccord.com, E-mail: info@finaccord.com 40% 50% 11
  • Distribution Channels for Travel Insurance and Assistance Any questions? Sources and related Finaccord publications: Travel Metrics: Consumer Approaches to Travel Insurance and Assistance in Europe Travel Insurance and Assistance in the Asia-Pacific Region Travel Insurance and Assistance in North and Latin America Travel Insurance and Assistance in Northern and Central Europe Travel Insurance and Assistance in Southern and Western Europe Insurance and Assistance linked to Payment Cards and Bank Accounts in Major Global Markets Insurance and Assistance linked to Payment Cards and Bank Accounts in Northern and Central Europe Insurance and Assistance linked to Payment Cards and Bank Accounts in Southern and Western Europe Global Mobile Operators: Strategies in Payments, Banking, Insurance and Assistance © Finaccord Ltd., 2013 Web: www.finaccord.com, E-mail: info@finaccord.com 12