Table of Contents
Introduction and Abbreviations
-
- The need to have adequate travel insurance is reinforced
- Consumer habits are examined
- Key sources
- Global information and research
- Consumer research
- ACORN
- Abbreviations
Premier Insight
-
- Elders and betters
- The sun may be bright, being uninsured is not bright
- Claim and counter claim
- Seasonal sales
- Cannier than you!
Executive Summary
-
- There were nearly 45 million holidays taken in 2005
- Travel patterns continue to alter
- Introduction of the EHIC may prevent some from seeking insurance
- Insurers are having to work harder for profitability
- The market will experience slower growth in 2006
-
- Figure 1: The overall size of the travel insurance market at cuurent prices and the number of overseas holidays taken by UK citizens, 1999-2006
- Some 20 million consumers purchase travel insurance
- AXA reinforces its pre-eminent position in this sector
-
- Figure 2: Estimated market share of the main travel insurance underwriters, by value, January 2006
- The travel trade struggles to hang on to its distribution share
- A degree of reassessment in the face of recent events
- Share of annual policies may be peaking
-
- Figure 3: Proportion of coverage when going abroad, by type of insurance policy, 1999-2006
- Forecast
Market Factors
-
- Consumer expenditure and PDI underpin the travel economy
-
- Figure 4: PDI, consumer expenditure, savings and saving ratio, 2000-10
- Subdued consumer confidence does not bode well
-
- Figure 5: Consumer confidence, by income band, July 2002-October 2005
- The number of overseas holidays approaches 45 million
-
- Figure 6: Overseas holidays and expenditure, 2000-05
- Travellers are venturing further afield
-
- Figure 7: Outbound holiday visits, by area visited, 1999-2004
- Independent holidays overtake the inclusive sector
-
- Figure 8: Inclusive and independent holidays, by volume, 1999-2005
- The low-cost airlines have boosted the volume of independent trips
-
- Figure 9: Scheduled passengers carried with low-cost airlines, 2000-04
- Short breaks increase in relative importance
-
- Figure 10: Short (1-3 nights) versus long holidays (4+ nights), by volume, 2000-05
- Changing holiday booking pattern takes insurance business away from the high street
-
- Figure 11: How last holiday abroad was booked, 2000-04
- More holidays are arranged on the Internet
-
- Figure 12: Method used to book last holiday abroad, 2003 and 2004
- Regulation – existing and forthcoming
- Events bring into focus the need for comprehensive and appropriate cover
- The EU health card may prevent some travellers from arranging insurance
Market Size and Trends
-
- Trading conditions become more testing
- Mintel estimates that the market is worth £670 million in 2006
-
- Figure 13: Market for travel insurance, by GWP, at current and constant (1999) prices, 1999-2006
- Providers are having to compensate for falling premium opportunities
-
- Figure 14: The value of the travel insurance market, the number of overseas holidays and the average premium per overseas visit, 1999-2006
- Some 23 million consumers are exposed to travel insurance each year
-
- Figure 15: Estimated number of people who took out travel insurance in the last 12 months, by type of policy, September 2005
Main Providers
-
- White Horse and Europ Assistance have a grip on the travel trade
-
- Figure 16: Selected providers of travel insurance and their underwriters (travel agents and tour operators), 2006
- AXA flourishes in the high street
-
- Figure 17: Selected providers of travel insurance and their underwriters (banks, building societies, retailers and others), 2006
- AXA looks set to reinforce its position in 2006
-
- Figure 18: Estimated market share of the main travel insurance underwriters, by value, January 2006
- Company snapshots
- AXA
- RBS Group
- Europ Assistance
- AIG
- ELVIA/Mondial
- Fortis
Competition and Premium Rates
-
-
- Figure 19: Sample premium rates for an annual multi-trip insurance policy for a family of four, November 2005
- Aggregator websites will see rates fall further and online purchasing rise
-
- Figure 20: Representative air ambulance costs, November 2005
-
Distribution and the Internet
-
- Online sales gain momentum
-
- Figure 21: Illustration of source used to obtain last policy, September 2005
- The Post Office, retailers and direct writers come to the fore
-
- Figure 22: Illustration of travel insurance distribution share, 2000-06
- Some travel agents will be increasingly reluctant to sell insurance
Advertising and Promotion
-
- Expenditure has been fairly steady since the start of the decade
-
- Figure 23: Overall travel insurance advertising expenditure, 2000/01-2004/05
- The top three advertisers account for 55% of spend
-
- Figure 24: Travel insurance advertising expenditure, by top providers, 2004/05
- Direct mail accounts for more than half of all spending
-
- Figure 25: Travel insurance advertising expenditure, by channel, 2004/05
Consumer Financial Activity
-
- Consumer confidence falls further amid economic fears
- Relationship with the main financial services providers
- Uncertainty will impact levels of borrowing
-
- Figure 26: Savings, investment, borrowing and debt repayment – consumers’ expected activity, June 2004-September 2005
- Younger and less affluent consumers to be more active relatively
-
- Figure 27: Expected financial activity, by socio-demographic and income groups, September 2005 and average for the last 15 quarters
- Debt repayment remains high on the agenda
-
- Figure 28: Leading financial activities planned in the next six months, September 2004-September 2005
- Real promise in the property market
-
- Figure 29: Intended mortgage and property purchase activity, September 2003-September 2005
- Little change year on year in MFSP share
-
- Figure 30: Leading main financial services providers: Market shares, September 2004-September 2005
- RBS should benefit from increased life and pensions business
-
- Figure 31: Saving, investment and lending market sizes, by expected customer demand and brand leaders (overall % intending to undertake activity in brackets), September 2005
- The Scottish banks will have the most active customer base
-
- Figure 32: Activity levels of main financial providers’ customer bases, September 2005
- HSBC and RBS can expect deposits to be built up
-
- Figure 33: Activity intentions and current household financial situation, by MFSP, September 2005
The Consumer
-
- Holiday-taking habits
-
- Figure 34: Holidays abroad taken in the last 12 months, September 2005
- Those without insurance still go afar
-
- Figure 35: Holidays abroad taken in the last 12 months, by type of insurance policy, September 2005
- The fear of terrorism and natural disasters
-
- Figure 36: Agreement with statement ‘As more of these events (terrorism, natural disasters etc) occur, I am becoming hardened to them, and they would not discourage me from travelling as they would have done five years ago’, September 2005
- Some destinations are bound to be affected
-
- Figure 37: Statements regarding destinations affected by terrorism and natural disasters, September 2005
- A stubborn minority are still travelling uninsured
-
- Figure 38: Proportion of travellers with insurance for their last overseas holiday, by gender, age and socio-economic group, September 2005
- Implications and opportunities
- Third agers are the most responsible
-
- Figure 39: Proportion of travellers with insurance for their last overseas holiday, by lifestage and Mintel’s Special Groups, September 2005
- Implications and opportunities
- Broadsheet readers take their chances
-
- Figure 40: Proportion of travellers with insurance for their last overseas holiday, by new technology users, newspaper readership, commercial TV viewing and supermarket usage, September 2005
- Implications and opportunities
- Summer peak determines travel insurance sales
-
- Figure 41: Seasonal distribution of travel insurance sales, September 2005
- People aged 25-44 buy insurance in the summer months
-
- Figure 42: Seasonal distribution of travel insurance sales, by gender, age and socio-economic group, September 2005
- Implications and opportunities
- Two thirds of single-trip policies are distributed in the peak period
-
- Figure 43: Seasonal distribution of travel insurance sales, by type of insurance policy, September 2005
- Share of annual policies may be peaking
-
- Figure 44: Proportion of coverage when going abroad, by type of insurance policy, 1999-2006
Consumer Attitudes and Targeting Opportunities
-
- 55-64s are most likely to opt for annual policies
-
- Figure 45: Type of policy purchased, by gender, age and socio-economic group, September 2005
- Implications and opportunities
- Half of travelling Londoners have an annual policy
-
- Figure 46: Type of policy purchased, by TV region, September 2005
- Implications and opportunities
- ABC1 third age group are obviously taking lots of holidays
-
- Figure 47: Type of policy purchased, by lifestage and Mintel’s Special Groups, September 2005
- Implications and opportunities
- Mum’s gone to Iceland, with a single-trip insurance policy
-
- Figure 48: Type of policy purchased, by new technology users, newspaper readership, commercial TV viewing and supermarket usage, September 2005
- Implications and opportunities
- Direct providers gradually usurp the travel agents
-
- Figure 49: Source used to obtain last policy, September 2005
- Men favour the Internet, women the Post Office
-
- Figure 50: Source used to obtain last policy, by gender, age and socio-economic group, September 2005
- Implications and opportunities
- The Scots stick to the package
-
- Figure 51: Source used to obtain last policy, by TV region, September 2005
- Implications and opportunities
- The family lifestage use the Post Office to arrange cover
-
- Figure 52: Source used to obtain last policy, by lifestage and Mintel’s Special Groups, September 2005
- Implications and opportunities
- Internet users favour the Internet!
-
- Figure 53: Source used to obtain last policy, by new technology users, newspaper readership, commercial TV viewing and supermarket usage, September 2005
- Implications and opportunities
- Bancassurers are strong in terms of annual policy distribution
-
- Figure 54: Source used to obtain last policy, by type of policy, September 2005
- Consumer attitudes are fairly mixed
-
- Figure 55: Attitudes towards arranging and shopping around for travel insurance, September 2005
- Younger consumers veer towards Internet sales
-
- Figure 56: Attitudes towards arranging and shopping around for travel insurance, by gender, age and socio-economic group, September 2005
- Implications and opportunities
- Annual policyholders are most concerned about taking out insurance
-
- Figure 57: Attitudes towards arranging and shopping around for travel insurance, by type of policy, September 2005
- Travel agent buyers endorse the convenience factor
-
- Figure 58: Attitudes towards arranging and shopping around for travel insurance, by source of purchase, September 2005
- Typologies – attitudes towards travel insurance
- Typology 1: On a Plate
- Typology 2: Mostly Browsing
- Typology 3: Opinionated Non-buyers
- Typology 4: Deal Seekers
- Typology 5: Couldn’t Care Less
- Deal Seekers peak among those aged 25-34
-
- Figure 59: Five travel insurance typologies, by gender, age, socio-economic group and TV region, September 2005
Industry Views
-
- The rise and rise of the annual policy
- The Internet takes hold
- Suppressed premiums and rising claims
- Recent events force some people to reconsider certain destinations
- The impact of regulation
- Growth opportunities in travel insurance
- Tackling the uninsured
- Other comments
The Future
-
- White-labelling will replace lost travel-originated business
- Annual products perhaps reaching a peak
- Put travel insurance in your basket
- Insurers should not neglect older travellers
- The impact of the tsunami
- Agents need to revamp their offerings
Forecast
-
-
- Figure 60: Forecast of the value of the travel insurance market, 2006-10
- Figure 61: Forecast of the number of overseas holidays and the average premium per overseas visit, 2006-10
- Factors used in the forecast
-
Back to top