Table of Contents
Executive Summary
-
- The market
- Standard model predicts solid premium growth
-
- Figure 1: Forecast of travel insurance gross written premiums – fan chart, 2008-18
- Market segmentation
- Market factors
- Claims costs impact on profitability
- Overseas holiday market starts to pick up
- Key challenges
- The future of packaged accounts
- Companies, brands and innovation
- Leading providers
- Product innovation
- Brand reinforcement
- Distribution channels
-
- Figure 2: Method of arranging travel insurance (last holiday abroad within past 12 months), November 2013
- A range of companies sell travel insurance
-
- Figure 3: Type of company providing travel insurance policy (last holiday abroad within past 12 months), November 2013
- The consumer
- Penetration of annual travel cover
-
- Figure 4: Ownership of annual travel insurance, by policy type and coverage, November 2013
- Recent holiday experience
- Travel insurance coverage
-
- Figure 5: Proportion of holidaymakers covered by insurance on their last holiday abroad, by region of destination, November 2013
- Buying habits
- Attitudes towards travel insurance products and providers
-
- Figure 6: Agreement with selected statements about travel insurance, November 2013
- What we think
Issues in the Market
-
- How do holiday booking habits affect the take-up of insurance?
- How important are packaged current accounts to the growth of annual travel insurance?
- Will the change in the rules impact future sales?
- How can greater awareness of EHICs reduce the pressure on medical claims costs?
Trend Application
-
- Trend: Let’s Make a Deal
- Trend: Click and Connect
- Mintel Futures: Old Gold
Market Drivers
-
- Key points
- Consumer confidence starts to pick up, as the economic recovery finally gains momentum
-
- Figure 7: GfK Consumer Confidence Barometer – UK, January 2000-January 2014
- Pound strengthens against the euro and US Dollar
-
- Figure 8: Sterling to euro and US Dollar exchange rates (average bid rates), 2006-13
- Implication for the travel insurance market
- Problems with EHICs could lead to higher insurance premiums
- Significant minority risk travelling abroad without cover
- Improving access to cover for the over-65s
- New rules governing the sale of packaged accounts
- Other regulatory news
Overseas Travel Trends
-
- Key points
- Overseas holiday market starts to pick up
-
- Figure 9: Number of overseas visits by UK residents, by purpose of visit, 2004-13
- Trips to North America continue to fall, while Europe and other regions start to see growth
-
- Figure 10: Number of overseas visits by UK residents, by region of visit, 2009-13
- The rise of independent travel
- Around a third of trips abroad are taken between July and September
- Sharp drop in the number of short breaks taken over the 2008-12 period
-
- Figure 11: Number of visits abroad by UK residents (holiday only), by length of stay, 2008-12
Market SWOT Analysis
-
-
- Figure 12: The UK travel insurance market – SWOT analysis, 2014
-
Who’s Innovating?
-
- Key points
- New technology helps to drive innovation in this market
- New partnerships
- Online developments
- Mobile apps and tools – used as policy differentiators
- New policies launched to cater for the over-65s
Market Size and Forecast
-
- Key points
- Travel insurance gross premiums grew 5% in 2013
-
- Figure 13: Estimated value of travel insurance policies sold, by gross written premiums, 2008-13
- Forecast
-
- Figure 14: Forecast of gross written travel insurance premiums – fan chart, 2008-18
- Figure 15: Forecast of gross written travel insurance premiums, 2008-18
- Forecast methodology
- Fan chart explanation
Market Segmentation
-
- Key points
- Annual policies account for at least two thirds of total premiums
-
- Figure 16: Segmentation of travel insurance market, by policy type – ABI members only, 2008-13
- Competitive pressures keep average annual premium stable
-
- Figure 17: Average travel insurance premium, by policy type, 2008-13
Annual Cost of Claims
-
- Key points
- Since reaching a record high in 2010, claims costs have fallen
-
- Figure 18: Total volume and value of travel insurance claims incurred, 2008-12
- Rising medical inflation remains the number one threat to margins
-
- Figure 19: Volume and value of medical expenses claims incurred on travel insurance policies, 2008-12
- Medical expenses account for over half of total claims costs
-
- Figure 20: Proportional distribution of travel insurance claim costs, by type of claim, 2012
Market Share
-
- Key points
- Market composition
- Recent M&A and rebranding activity
- Recent key account changes have affected underwriters’ market shares
-
- Figure 21: Selected distributors of travel insurance and their administration partners/underwriters, January 2013
- AXA retains its market-leading position
-
- Figure 22: Leading travel insurance underwriters, by gross written premiums (UK business only), 2010-12
Companies and Products
-
- AXA Insurance
- ACE European Group
- Ageas UK
- Allianz Global Assistance
- Aviva
- Cigna Insurance Services
- Collinson Insurance Group
- Direct Line Group
- MAPFRE ASSISTANCE
- Munich Re
- White Horse Insurance
Brand Research
-
- Brand map
-
- Figure 23: Attitudes towards and usage of brands in the travel insurance sector, November 2013
- Correspondence analysis
- Brand attitudes
-
- Figure 24: Attitudes, by travel insurance brand, November 2013
- Brand personality
-
- Figure 25: Travel insurance brand personality – macro image, November 2013
-
- Figure 26: Travel insurance brand personality – micro image, November 2013
- Brand experience
-
- Figure 27: Travel insurance brand usage, November 2013
-
- Figure 28: Satisfaction with various travel insurance brands, November 2013
-
- Figure 29: Consideration of travel insurance brands, November 2013
- Figure 30: Consumer perceptions of current travel insurance brand performance, November 2013
- Brand index
-
- Figure 31: Travel insurance brand index, November 2013
- Target group analysis
-
- Figure 32: Target groups, November 2013
-
- Figure 33: Travel insurance brand usage, by target groups, November 2013
- Group One – Conformists
- Group Two – Simply the Best
- Group Three – Shelf Stalkers
- Group Four – Habitual Shoppers
- Group Five – Individualists
Brand Communication and Promotion
-
- Key points
- Travel insurance providers increase their investment in advertising
-
- Figure 34: Advertising expenditure on travel insurance, 2009-2013
- Saga and Staysure spend the most on advertising
-
- Figure 35: Top ten travel insurance advertisers, 2009-13
- TV and direct mail account for the largest proportion of adspend
-
- Figure 36: Proportional distribution of travel insurance adspend, by media type, 2009-2013
- A note on adspend
Channels to Market
-
- Key points
- Online leads the way
-
- Figure 37: Method of arranging travel insurance (last holiday abroad within past 12 months), November 2013
- New technology changes buying habits
-
- Figure 38: Type of company providing travel insurance policy (last holiday abroad within past 12 months), November 2013
- Assessing the popularity of price comparison sites
-
- Figure 39: Agreement with statements about shopping for travel insurance, November 2013
Penetration of Annual Travel Policies
-
- Key points
- Survey background
- Around two in five adults have an annual travel policy
-
- Figure 40: Ownership of annual travel insurance, by policy type and coverage, November 2013
- The customer profile of annual travel policyholders is fairly broad…
- …although a few key demographics record significantly higher take-up
Insurance Cover Taken Out on Last Holiday Abroad
-
- Key points
- Roughly four in five adults have taken a holiday in the past year
-
- Figure 41: Holidays taken within the past 12 months – total sample, November 2013
- The under-35s are the keenest travellers…
- …and half of them travelled abroad on their last trip…
-
- Figure 42: Destination of last holiday taken, by those who have taken a holiday within the past 12 months, November 2013
- …of whom, roughly one in seven chose to travel without insurance
-
- Figure 43: Proportion of holidaymakers covered by insurance on their last holiday abroad, by region of destination, November 2013
- One in four 16-24-year-olds have travelled abroad without insurance…
- …as have one in ten over-65s
- People are less likely to have insurance for short breaks…
-
- Figure 44: Proportion of holidaymakers covered by insurance on their last holiday abroad, by length of time away and region, November 2013
- …and when they travel independently to Europe
-
- Figure 45: Proportion of holidaymakers covered by insurance on their last holiday abroad, by package or independent holiday, November 2013
- The more people spend on a trip, the more likely they are to have cover
-
- Figure 46: Proportion of holidaymakers covered by insurance on their last holiday abroad, by how much spent on holiday, November 2013
Buying Behaviour
-
- Key points
- One in nine holidaymakers admit to buying the cheapest insurance policy
-
- Figure 47: Agreement with statements about buying travel insurance and related issues, by total sample and those who have taken a holiday abroad in the past 12 months, November 2013
- Just two in five adults who holidayed in Europe in the past year have an EHIC
-
- Figure 48: Agreement with statements about buying travel insurance and related issues, by those whose last holiday was abroad, November 2013
- Low claims rejection rate
-
- Figure 49: Agreement with statements about buying travel insurance and related issues, by coverage on last holiday abroad, November 2013
Attitudes toward Travel Insurance
-
- Key points
- Only half of all adults think travel insurance is essential
-
- Figure 50: Agreement with statements about travel insurance, by total sample and those who have taken a holiday abroad in the past 12 months, November 2013
- More than a fifth think there are too many exclusions
- More than two fifths of over-65s think travel insurance is too expensive for their age group
- One in four annual policyholders think it’s better to buy a standalone policy rather than a packaged product
-
- Figure 51: Agreement with statements about travel insurance, by coverage on last holiday abroad, November 2013
Appendix – Market Size and Forecast
-
- Total market forecast – best- and worst-case scenarios
-
- Figure 52: Forecast of travel insurance gross written premiums – best- and worst-case scenarios, at current prices, 2013-18
Appendix – Brand Research
-
-
- Figure 53: Brand usage, November 2013
- Figure 54: Brand commitment, November 2013
-
- Figure 55: Brand momentum, November 2013
- Figure 56: Brand diversity, November 2013
-
- Figure 57: Brand satisfaction, November 2013
- Figure 58: Brand attitude, November 2013
-
- Figure 59: Brand image – macro image, November 2013
- Figure 60: Brand image – micro image, November 2013
-
- Figure 61: Demographic profile of target groups, November 2013
- Figure 62: Psychographic segmentation, by target groups, November 2013
- Figure 63: Brand usage, by target groups, November 2013
- Brand index
-
- Figure 64: Brand index, November 2013
-
Appendix – Channels to Market
-
-
- Figure 65: Method of arranging travel insurance, by demographics, November 2013
-
- Figure 66: Type of company providing travel insurance, by demographics, November 2013
-
Appendix – Penetration of Annual Travel Policies
-
-
- Figure 67: Ownership of annual travel insurance, by type of policy, by demographics, November 2013
-
Appendix – Insurance Cover Taken Out on Last Holiday Abroad
-
-
- Figure 68: UK and overseas holidays taken in the past 12 months, by region, by demographics, November 2013
- Figure 69: Last holiday taken, by region and demographics (filtered on those who have taken a holiday in the past 12 months), November 2013
-
- Figure 70: Proportion of holidaymakers covered by insurance on their last trip abroad, by demographics, November 2013
-
Appendix – Buying Behaviour
-
-
- Figure 71: Agreement with statements about buying travel insurance and related issues (top five behaviours), by demographics, November 2013
- Figure 72: Agreement with statements about buying travel insurance and related issues (next four most common behaviours), by demographics, November 2013
-
- Figure 73: Agreement with statements about buying travel insurance and related issues (final three behaviours), by demographics, November 2013
-
Appendix – Attitudes toward Travel Insurance
-
-
- Figure 74: Agreement with statements about travel insurance (top five), by demographics, November 2013
- Figure 75: Agreement with statements about travel insurance (next three), by demographics, November 2013
-
Back to top