Table of Contents
Issues in the Market
-
- Key issues
- Abbreviations
Future Opportunities
-
- Striving for stability by eliminating risk
- Travellers take the time to review insurance options
- Demonstrating value
- Reaching out to the uninsured
Market in Brief
-
- Travel insurance market declines during 2009
-
- Figure 1: UK travel insurance – GWP, 2004-09
- Overseas trips fell by 15% in 2009
-
- Figure 2: Domestic vs overseas holidays, 2004-09
- No increase in uninsured travellers…
-
- Figure 3: Trends in arrangements made for travel insurance on last overseas trip, 2008 and 2009
- …but consumers are much more aware of existing cover
- Travel agents lose share
-
- Figure 4: Trends in methods/channels used to arrange travel insurance cover, 2008 and 2009
- Medical expense cover is primary consideration
-
- Figure 5: Most important considerations when arranging a travel insurance policy, November 2009
- AXA tops list of travel insurance underwriters
-
- Figure 6: Top ten travel insurance underwriters by GWP, 2008
Internal Market Environment
-
- Key points
- Overseas holidays fall by 15% in 2009
-
- Figure 7: Domestic vs overseas holidays, 2004-09
- All regions impacted by the decline in holidays
-
- Figure 8: Outbound holiday visits, by region visited, 2004-09
- Around 60% of holidays are arranged independently
-
- Figure 9: Inclusive holidays versus independent holidays, by volume, 2004-09
- Travel firms and financial failure
- ATOL scheme to be reviewed
- Claim incidences fall but costs continue to rise
-
- Figure 10: Travel insurance claims incurred, by volume and value, 2004-09
- Recession may lead to an increase in fraudulent activity
- FSA regulation creates a level playing field
- Swine flu – limited impact
Broader Market Environment
-
- Key points
- Taking a more cautious approach
- Consumer confidence shows signs of improvement
-
- Figure 11: Financial confidence, January-December 2009
- Holidays remain a favoured luxury
-
- Figure 12: What people choose to spend any extra money on, November 2009
- Appetite for travel abroad undermined by fall in the value of Sterling
-
- Figure 13: Spot exchange rates, US Dollar, euro into Sterling, January 2008-October 2009
- Over-65s market is set to become increasingly important
-
- Figure 14: UK population, by age, 2004-14
- Fears over the Equality Bill are allayed
Competitive Context
-
- Key points
- Around 10% of people opt to travel abroad without insurance
-
- Figure 15: Most recent travel insurance arrangements, November 2009
- An issue of trust
- EHIC – a significant competitor?
- Growth of packaged accounts poses a threat to standalone providers
- Travel insurance is the most popular packaged account benefit
-
- Figure 16: Benefits most appealing from premium and packaged current accounts, March 2009
Strengths and Weaknesses in the Market
-
-
- Figure 17: Strengths and weaknesses in the travel insurance market, February 2010
-
Who’s Innovating?
-
- Key points
- An adjustable travel insurance policy
- Focus on the over-50s market
- Staysure
- RIAS
- Aon France launches rainfall cover
- InsureandGo launches new products and services
- Green policies
- Holiday dispute cover
- Sheilas’ Wheels targets female travellers
Trade Perspective
-
- Impact of the recession
- Single-trip vs annual multi-trip policies
- Barriers to purchase
- Future challenges, developments and innovations
Market Size and Forecast
-
- Key points
- Travel insurance premiums decline in 2009
-
- Figure 18: UK travel insurance – GWP, 2004-09
- Volume falls more sharply than value
-
- Figure 19: Volume and value of single-trip and annual policies, 2004-09
- Single-trip vs annual multi-trip cover
- Market forecast
-
- Figure 20: Forecast of travel insurance – GWP, 2004-14
Market Share
-
- Key points
- AXA leads the way in the UK travel insurance market
-
- Figure 21: Top ten travel insurance underwriters, by GWP, 2008
- Underwriters and travel insurance brands
-
- Figure 22: Selected travel insurance brands and underwriters, February 2010
Companies and Products
-
- Recent developments in the market
- Major players
- AIG/Chartis
- Aviva
- AXA
- Europ Assistance
- Europ Assistance
- RBS Insurance
Channels to Market
-
- Key points
- Travel agents lose ground but use of free cover increases
-
- Figure 23: Trends in methods/channels used to arrange travel insurance cover, 2008 and 2009
- Banks and building societies increase their presence in market
-
- Figure 24: Trends in channels used to purchase insurance, 2005-09
- Internet overtakes telephone as the most popular channel
-
- Figure 25: Trends in methods used to arrange travel insurance, 2007-09
Brand Communication and Promotion
-
- Key points
- Adspend on travel insurance products falls by 28% in 2008/09
-
- Figure 26: Adspend for travel and sport insurance, 2006/07-2008/09
- Direct mail accounts for two thirds of travel insurance adspend
-
- Figure 27: Adspend for travel and sport insurance, by media type, 2006/07-2008/09
- Saga is the top advertiser in the sector
-
- Figure 28: Top advertisers of travel insurance over the last three years (combined), 2006/07-2008/09
- Travel insurance adspend has distinct seasonal peaks
-
- Figure 29: Monthly trends in travel insurance adspend, 2008
The Consumer – Travel and Holiday Trends
-
- Key points
- Note on consumer research
- The year of the ‘staycation’
-
- Figure 30: Holidays taken in the past 12 months, November 2009
- Third agers and women are more likely to have been on holiday
-
- Figure 31: Holidays taken in the past 12 months, by gender, age, lifestage, marital status and presence of children in household, November 2009
- Affluence is key to holiday trends
-
- Figure 32: Holidays taken in the last 12 months, by socio-economic group, working status, household income, household tenure and internet access, November 2009
- A fifth took multiple overseas trips during 2009
-
- Figure 33: Number of holidays (short or long) taken in the past 12 months, November 2009
The Consumer – Travel Insurance Product Ownership
-
- Key points
- No increase in uninsured travel during 2009
-
- Figure 34: Travel insurance ownership, November 2009
- Awareness of existing policies increased during 2009
-
- Figure 35: Trends in arrangements made for travel insurance on last overseas trip, 2008 and 2009
- Opportunities to increase travel insurance ownership
-
- Figure 36: Travel insurance policy ownership, by gender, age, lifestage, marital status and presence of children in household, November 2009
- Higher earners opt for annual travel insurance policies
-
- Figure 37: Travel insurance policy ownership, by socio-economic group, working status, household income, household tenure and internet access, November 2009
- Travellers understand the value offered by annual travel insurance policies
-
- Figure 38: Arrangements made for travel insurance on last overseas trip, by number of holidays (short or long) taken in the past 12 months, November 2009
- Worldwide travellers more likely to opt for annual cover
-
- Figure 39: Travel insurance policy ownership, by holidays taken abroad in the past 12 months, November 2009
- Single-trip cover favoured for packaged holidays
-
- Figure 40: Travel insurance policy ownership, by package and independent holidays, November 2009
The Consumer – Purchasing Travel Insurance
-
- Key points
- Travel agents lose market share during 2009…
-
- Figure 41: Trends in methods/channels used to arrange travel insurance cover, 2008 and 2009
- …but use of free or inclusive cover is increasing
- Younger travellers more likely to arrange insurance through travel agents
-
- Figure 42: Methods/channels used to arrange travel insurance cover, by gender, age, lifestage, marital status and presence of children in household, November 2009
- Higher earners are more likely to go directly to an insurer
-
- Figure 43: Methods/channels used to arrange travel insurance cover, by socio-economic group, working status and household income, November 2009
- Direct insurers account for almost 50% of annual travel insurance market
-
- Figure 44: Where obtain last travel insurance policy, by arrangements made for travel insurance on last overseas trip, November 2009
- Direct insurers lead the way in both independent and packaged sectors
-
- Figure 45: Methods/channels used to arrange travel insurance cover, by independent and package holidays, November 2009
The Consumer – Motivations for Purchasing Travel Insurance and Targeting Opportunities
-
- Key points
- Cover for medical expenses is the number one motivation
-
- Figure 46: Most important considerations when arranging a travel insurance policy, November 2009
- A third of travellers opt for low-cost policies
- More than a quarter have only one consideration when arranging cover
-
- Figure 47: Most important considerations when arranging a travel insurance policy, by repertoire of number of most important things considered when arranging a travel insurance policy, November 2009
- Price is more likely to be an issue for single-trip policyholders
-
- Figure 48: Most important considerations when arranging a travel insurance policy, by arrangements made for travel insurance on last overseas trip, November 2009
- Concerns about medical expense cover are heightened for those travelling outside Europe
-
- Figure 49: Most important considerations when arranging a travel insurance policy, by holidays taken in the past 12 months, November 2009
- A fifth of people looking for the lowest price turn to price-comparison sites
-
- Figure 50: Methods/channels used to arrange travel insurance cover, by most important considerations when arranging a travel insurance policy, November 2009
- Target group analysis
-
- Figure 51: Travel insurance target groups, November 2009
- Medical cover seekers
- Price conscious travellers
- Personal possession prioritisers
- The disinterested
Appendix – The Consumer – Motivations for Purchasing Travel Insurance and Targeting Opportunities
-
-
- Figure 52: Most important considerations when arranging travel insurance, by demographics, November 2009
-
- Figure 53: Next most important considerations when arranging travel insurance, by demographics, November 2009
-
- Figure 54: Travel insurance target groups, by demographics, November 2009
-
- Figure 55: Travel insurance ownership, by travel insurance target groups, November 2009
-
- Figure 56: Channel/method used to arrange travel insurance, by travel insurance target groups, November 2009
-
- Figure 57: Most important considerations when arranging travel insurance, by travel insurance target groups, November 2009
-
Back to top