ITIC Barcelona 2012                         Travel insurance: opportunities                             in developing mark...
ITIC Barcelona 2012                                     Introduction           Finaccord estimates the global market for ...
ITIC Barcelona 2012                         Relative size of outbound travel markets                   Estimated number of...
ITIC Barcelona 2012                         Recent growth trends in foreign travel                         Compound annual...
ITIC Barcelona 2012               Other factors affecting policy uptake, potential                 market size and the dis...
ITIC Barcelona 2012              Distribution channels used for travel insurance                         Travel trade     ...
ITIC Barcelona 2012                Provision by travel agents and tour operators                         % of travel agent...
ITIC Barcelona 2012  Provision of stand-alone cover by banking organisations                    % of banks and similar org...
ITIC Barcelona 2012                         Provision linked to banking products           % of payment card and bank acco...
ITIC Barcelona 2012          Provision of insurance by mobile phone operators               % of country-specific operator...
ITIC Barcelona 2012     Provision of travel policies by mobile phone operators                         % of country-specif...
ITIC Barcelona 2012                                              Any questions?                            Sources and rel...
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Itic barcelona-2012 travel-insurance-opportunities-in-developing-markets_november-2012

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Finaccord estimates the global market for stand-alone travel insurance and assistance to be 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

Published in: Economy & Finance
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Itic barcelona-2012 travel-insurance-opportunities-in-developing-markets_november-2012

  1. 1. ITIC Barcelona 2012 Travel insurance: opportunities in developing markets Simon Tottman 1st November 2012© Finaccord Ltd., 2012 Web: www.finaccord.com, E-mail: info@finaccord.com 1
  2. 2. ITIC Barcelona 2012 Introduction  Finaccord estimates the global market for stand-alone travel insurance and assistance to be 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?  What particular local challenges are faced when entering and operating in young or developing markets?  Which sales and distribution channels will play a key role in this expansion of this industry?© Finaccord Ltd., 2012 Web: www.finaccord.com, E-mail: info@finaccord.com 2
  3. 3. ITIC Barcelona 2012 Relative size of outbound travel markets Estimated number of foreign trips lasting one night or more, 2012 (million) 100 87 80 78 71 60 54 40 34 26 20 16 8 6 0 France Germany UK USA Australia Brazil Russia India China© Finaccord Ltd., 2012 Web: www.finaccord.com, E-mail: info@finaccord.com 3
  4. 4. ITIC Barcelona 2012 Recent growth trends in foreign travel Compound annual growth in the number of foreign trips, 2008-2012 20% 15% 14.2% 10.2% 10% 9.3% 5.6% 5% 3.3% 0.3% 0.3% 0.1% 0% -5% -6.1% -10% France Germany UK USA Australia Brazil Russia India China© Finaccord Ltd., 2012 Web: www.finaccord.com, E-mail: info@finaccord.com 4
  5. 5. ITIC Barcelona 2012 Other factors affecting policy uptake, potential market size and the distribution landscape  ‘Local’ outbound travel to neighbouring countries, especially by road / rail as opposed to by air (e.g. from China and within the Middle East).  Non-exclusive distribution agreements with banks and other types of organisation (e.g. in China and Russia).  Decentralised travel agency networks (e.g. in China).  Cultural, religious and regulatory considerations (e.g. takaful products in the Middle East and Asia-Pacific).  Travel booking habits, the state of technological development, and the strength of face-to-face culture.© Finaccord Ltd., 2012 Web: www.finaccord.com, E-mail: info@finaccord.com 5
  6. 6. ITIC Barcelona 2012 Distribution channels used for travel insurance Travel trade Insurance company Bank or similar Insurance broker Insurance aggregator Other 100% 80% 60% 40% 20% 0% France Germany UK USA Australia Brazil Russia India China© Finaccord Ltd., 2012 Web: www.finaccord.com, E-mail: info@finaccord.com 6
  7. 7. ITIC Barcelona 2012 Provision by travel agents and tour operators % of travel agents and tour operators offering travel insurance 100% 98% 100% 100% 96% 86% 89% 87% 80% 80% 71% 60% 40% 20% 0% France Germany UK USA Australia Brazil Russia India China© Finaccord Ltd., 2012 Web: www.finaccord.com, E-mail: info@finaccord.com 7
  8. 8. ITIC Barcelona 2012 Provision of stand-alone cover by banking organisations % of banks and similar organisations offering stand-alone travel policies 100% 80% 59% 61% 58% 60% 41% 40% 22% 20% 17% 5% 3% 5% 0% France Germany UK USA Australia Brazil Russia India China© Finaccord Ltd., 2012 Web: www.finaccord.com, E-mail: info@finaccord.com 8
  9. 9. ITIC Barcelona 2012 Provision linked to banking products % of payment card and bank account products featuring comprehensive travel cover 100% 80% 60% 40% 35% 30% 27% 24% 20% 16% 16% 15% 13% 5% 0% France Germany UK USA Australia Brazil Russia India China© Finaccord Ltd., 2012 Web: www.finaccord.com, E-mail: info@finaccord.com 9
  10. 10. ITIC Barcelona 2012 Provision of insurance by mobile phone operators % of country-specific operators offering each type of insurance and assistance Mobile phone insurance 36% Mobile gadget insurance 13% Bill payment protection insurance 4% Identity protection insurance / assistance 1% Motor insurance 1% Household insurance 2% Travel insurance / assistance 9% Accident insurance 9% Health insurance 3% Life insurance 6% Home assistance 6% Legal assistance 5% Medical assistance 10% Road assistance 7% Miscellaneous insurance / assistance 7% 0% 10% 20% 30% 40% 50%© Finaccord Ltd., 2012 Web: www.finaccord.com, E-mail: info@finaccord.com 10
  11. 11. ITIC Barcelona 2012 Provision of travel policies by mobile phone operators % of country-specific operators offering travel insurance / assistance Unweighted Weighted 6% Europe 6% 0% Africa & Middle East 0% 12% Asia Pacific 32% 37% Latin America 32% 0% North America 0% 0% 10% 20% 30% 40% 50%© Finaccord Ltd., 2012 Web: www.finaccord.com, E-mail: info@finaccord.com 11
  12. 12. ITIC Barcelona 2012 Any questions? Sources and related Finaccord publications: Travel Insurance and Assistance in Major Global Markets Travel Insurance and Assistance in Northern and Central Europe Travel Insurance and Assistance in Southern and Western Europe Travel Metrics: Consumer Approaches to Travel Insurance and Assistance in Europe Bancassurance in China Life and Non-Life Bancassurance in Europe Global Mobile Operators: Strategies in Payments, Banking, Insurance and Assistance 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© Finaccord Ltd., 2012 Web: www.finaccord.com, E-mail: info@finaccord.com 12
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