Distribution Channels for Travel Insurance and Assistance: Finding the Right Mix for European Markets

Transcription

1 Distribution Channels for Travel Insurance and Assistance: Finding the Right Mix for European Markets Presentation at the Uniglobal Travel Insurance Forum Prague, December 5 th 6 th 2013 Finaccord Ltd., 2013 Web: info@finaccord.com 1

2 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: 2

3 Relative size of outbound travel markets Estimated number of foreign trips lasting one night or more, 2012 (million) France Germany UK USA Australia Brazil Russia India China Finaccord Ltd., 2013 Web: info@finaccord.com 3

4 Recent growth trends in foreign travel Compound annual growth in the number of foreign trips, % 16.1% 1 5% 9.1% 3.3% 5.6% 8.2% 0.3% 0.3% -0.5% -5% % France Germany UK USA Australia Brazil Russia India China Finaccord Ltd., 2013 Web: info@finaccord.com 4

5 Distribution channels used for stand-alone travel insurance 10 Travel trade Insurance company Bank or similar Insurance broker Insurance aggregator Other France Germany UK USA Australia Brazil Russia India China Finaccord Ltd., 2013 Web: info@finaccord.com 5

6 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 France Germany Italy Netherlands Spain UK Average Finaccord Ltd., 2013 Web: info@finaccord.com 6

7 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. Ferry operators 58.3% Railway operators 100. Banking organisations Specialised card providers 4.9% 5.6% Total 44.9% Finaccord Ltd., 2013 Web: info@finaccord.com 7

8 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% Finaccord Ltd., 2013 Web: info@finaccord.com 8

9 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% AMI Assistance, 15.6% Mondial Assistance, 45.8% Europ Assistance, 22.9% Finaccord Ltd., 2013 Web: 9

10 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 13% 4% 1% 1% 2% 9% 9% 3% 6% 6% 5% 1 7% 7% 36% Finaccord Ltd., 2013 Web: info@finaccord.com 10

11 Provision of travel policies by mobile phone operators % of country-specific operators offering travel insurance / assistance Unweighted Weighted Europe 6% 6% Africa & Middle East Asia Pacific 12% 32% Latin America 32% 37% North America Finaccord Ltd., 2013 Web: info@finaccord.com 11

12 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: