Travel Insurance and Assistance in the Asia-Pacific Region

Travel Insurance and Assistance in the Asia-Pacific Region Report Prospectus October 2013 Web: www.finaccord.com. E-mail: info@finaccord.com 1

Prospectus contents Page What is the research? What methodology has been used? How do organisations surveyed break down? What is the report structure? What are the key features of the research? How can the research be used? How can the PartnerBASE be used? What does the market data annexe deliver? Who can use the research? What are some of the key findings? What is the cost and format? What other reports are available? How can the research be purchased? 3 4 5 6 7 8 9 10 11 12-15 16 17 18 Web: www.finaccord.com. E-mail: info@finaccord.com 2

What is the research? Finaccord's report titled Travel Insurance and Assistance in the Asia-Pacific Region investigates the often fast-growing markets for stand-alone travel insurance and assistance in ten countries in this region, namely Australia, China, Hong Kong, India, Indonesia, Japan, New Zealand, Singapore, South Korea and Taiwan. Across each of these countries, the study investigates trends in both business and leisure travel between 2008 and 2012, verifies the current distribution partnerships for travel cover of all major travel trade, transportation and financial organisations, and analyses the importance of travel cover packaged automatically with payment cards and bank accounts. The report is accompanied by an Excel PartnerBASE dataset that details the travel insurance partnerships of each of the travel trade, transportation and financial organisations covered, plus a convenient market data annexe, also in Excel format. While Finaccord has released research about travel insurance in other countries around the world since 2003, this is the first time that a detailed publication has ever been made available specifically for the Asia-Pacific region, thereby filling an important gap in a market that is likely to increase in value by well over 40% between 2012 and 2016. Web: www.finaccord.com. E-mail: info@finaccord.com 3

What methodology has been used? Finaccord s investigation into the travel insurance and assistance market in the Asia-Pacific region draws on several sources. First, Finaccord analyses the size, segmentation and dynamics of the underlying travel market, developing standardised data for the number of overseas trips in each country between 2008 and 2012, split between holiday and business travel. The report also includes top level findings from a separate survey focused on the provision of travel insurance and assistance packaged with over 4,500 payment card and bank account products by all significant banks and other card issuers in the region. However, the largest element is the extensive survey of 1,220 travel trade, transportation and financial organisations across this region. These were investigated to find out: if they distribute travel insurance and assistance policies; if so, what operating model is used (e.g. external underwriter, external broker, captive underwriter etc.); and if so, who their insurance partner(s) is / are. These companies include airlines, banks, ferry and railway operators, online travel specialists and specialised card providers, as well as mainstream travel agents and tour operators, thereby offering comprehensive coverage of these major distribution categories. Web: www.finaccord.com. E-mail: info@finaccord.com 4

How do organisations surveyed break down? Segmentation by type of firm Segmentation by geography Specialised card providers, 62 Taiwan, 110 Australia, 114 Banking organisations, 291 Railway operators, 24 Ferry operators, 37 South Korea, 110 Singapore, 82 Travel agents / tour operators, 585 New Zealand, 96 China, 202 Hong Kong, 95 Airlines, 139 Japan, 149 India, 139 Online travel specialists, 82 Indonesia, 123 Web: www.finaccord.com. E-mail: info@finaccord.com 5

What is the report structure? 0. Executive Summary: providing a concise evaluation of the principal findings of the report. 1. Introduction: offering rationale, description of methodology and some definitions. 2. Regional Overview: comprising an overview of the market for travel insurance and assistance in the Asia-Pacific region including: data spanning 2008 to 2012 for the underlying travel market with segmentations by type of trip, and for the size of the market for stand-alone travel insurance and assistance in terms of premiums and policies, with a segmentation between single-trip and annual cover; comparisons of operating models used and market concentration by country; and forecasts for market drivers, values and volumes to 2016. 3. Australia: an in-depth study of the market for travel insurance and assistance in Australia including: data spanning 2008 to 2012 for the underlying travel sector and for the value and volume of the stand-alone travel insurance and assistance market with similar segmentations to those in the overview chapter; analyses of the share of distribution relationships of travel insurance providers split between travel trade, transportation and financial organisations; a review of other direct and affinity distribution channels, including packaged cover; and forecasts to 2016. 4-12: Australia, China, Hong Kong, India, Indonesia, Japan, New Zealand, Singapore, South Korea and Taiwan (structure as for Australia). Web: www.finaccord.com. E-mail: info@finaccord.com 6

What are the key features of the research? Key features of this report include: quantification of the market size and segmentation for travel insurance and assistance in ten countries: how much are these markets worth and where are they forecast to grow most quickly? segmentation of travel insurance policies between single-trip and annual policies: to what extent are annual policies on the rise and where have they made the most progress? competitor share of partnerships by number of relationships: which providers of travel insurance and assistance policies have the most relationships with travel trade and transportation entities, which have been most successful with banks and how does this vary by country? commentaries about distribution channels in each country: how active are other key distributor categories such as automotive clubs, direct sales, online aggregators and brokers, other online brands, retailers and other consumer-facing entities? availability of an accompanying PartnerBASE dataset that includes every travel insurance partnership traced by Finaccord across 1,220 key distributors, plus a market data annexe, both in Excel format. Web: www.finaccord.com. E-mail: info@finaccord.com 7

How can the research be used? You may be able to use this report and the PartnerBASE dataset and market data annexe that accompany it in one or more of the following ways: compare the size of stand-alone travel insurance and assistance markets in the Asia-Pacific region, their growth rates (since 2008) and their future prospects (to 2016); understand the supply structure for travel insurance and assistance, the operating models in use, the level of market concentration and the relative importance of national versus international companies; appreciate the potential for establishing distribution relationships across a broad range of partner categories and view what different competitors are doing in this context; gain access to a single comprehensive source of information that covers distribution arrangements for 1,220 travel trade, transportation and financial organisations; use the unique statistics contained in the market data annexes to develop your own analyses and presentations on this subject. Web: www.finaccord.com. E-mail: info@finaccord.com 8

How can the PartnerBASE be used? Search by organisation Select country Identify ultimate holding companies TRAVEL INSURANCE AND ASSISTANCE Organisation Category Country Offered? Operating model Immediate partner(s) / brand(s) UHC(s) Seiki Travel Travel agents / tour operators Singapore Yes External underwriter AXA Insurance Singapore AXA Scoot Airlines Australia Yes External underwriter ACE Insurance Australia ACE Seagull Worldways Travel agents / tour operators India Yes External underwriter Tata AIG General Insurance AIG / Tata Group Segyero Travel Travel agents / tour operators South Korea Yes External underwriter ACE Insurance Korea ACE Seibu Railway Company Railway operators Japan Yes External underwriter AIU AIG Filter by category See operating model View partners Web: www.finaccord.com. E-mail: info@finaccord.com 9

What does the market data annexe deliver? Country Variable (and units) 2008 2009 2010 2011 2012 CAGR 2008 to 2012 (nominal) CAGR 2008 to 2012 (real) 2016 CAGR 2012 to 2016 (nominal) CAGR 2012 to 2016 (real) Country X Holiday trips (million) 9.6 7.4 9.5 9.7 10.5 2.2% 11.0 1.3% Country X Business trips (million) 2.4 2.1 3.0 3.0 3.3 8.0% 3.4 1.0% Country X Total trips (million) 12.0 9.5 12.5 12.7 13.7 3.4% 14.4 1.2% Country X Number of single-trip policies (000s) 4,066.7 3,375.2 4,694.4 4,857.9 5,337.1 7.0% 5,978.9 2.9% Country X Number of annual policies (000s) 431.9 375.0 550.7 600.4 707.2 13.1% 933.1 7.2% Country X Total number of policies (000s) 4,498.5 3,750.2 5,245.1 5,458.3 6,044.3 7.7% 6,912.0 3.4% Country X Total GWP (USD million) 235.6 201.7 290.5 314.4 355.7 10.8% 7.4% 454.6 6.3% 2.8% For each country, the market data annexe provides the sample data shown above plus related data such as population and national GDP. Note that growth in market values, expressed in gross written premiums, are displayed real terms (taking account of inflation) as well as in nominal terms. This annexe can be used as a convenient source of data already in Excel format which means that there is no need for users to re-enter data from the PDF report into their own Excel worksheets. Web: www.finaccord.com. E-mail: info@finaccord.com 10

Who can use the research? 1. Specialist travel insurance and assistance companies: this study is a comprehensive source of information about this market, giving detailed and up-to-date information for Australia, China, Hong Kong, India, Indonesia, Japan, New Zealand, Singapore, South Korea and Taiwan; 2. Multi-line insurers: although specialist providers sometimes dominate travel trade distribution, there are opportunities for other insurers to gain market share by using other channels, and this report provides guidance about these possibilities; 3. Travel companies and other existing or potential travel insurance intermediaries: in the Asia- Pacific region, sales of travel insurance are often focused on traditional travel agents and tour operators - this report helps you to plan for possible changes in distribution systems; 4. Banking institutions and other card issuers: evaluate the attractiveness of offering travel insurance as a stand-alone product or as an enhancement to payment cards or bank accounts; 5. Management consultancies: are you helping a travel company, assistance firm or insurer with its future plans for the travel insurance and assistance market in the Asia-Pacific region? Save time researching the subject yourselves by accessing this publication. Web: www.finaccord.com. E-mail: info@finaccord.com 11

What are some of the key findings? 1. Australian, Indian and Japanese travellers make overseas visits to the most varied range of destination countries Australia China Hong Kong India Indonesia Japan New Zealand Singapore South Korea Leading destination 2nd destination 3rd destination 4th destination All other destinations Taiwan Average 0% 20% 40% 60% 80% 100% Source: Finaccord analysis Web: www.finaccord.com. E-mail: info@finaccord.com 12

What are some of the key findings? (cont.) 2. Banks in Australia, Hong Kong and Singapore are most likely to distribute stand-alone travel cover to their customers Australia China Hong Kong 14.9% 83.3% 90.9% India 54.2% Indonesia 3.3% Japan 22.6% New Zealand 45.5% Singapore 81.8% South Korea Taiwan Average 33.3% 40.0% 47.0% 0% 20% 40% 60% 80% 100% % of banking organisations found to offer stand-alone travel policies, 2013 Source: Finaccord PartnerBASE for Travel Insurance and Assistance in the Asia-Pacific Region Web: www.finaccord.com. E-mail: info@finaccord.com 13

What are some of the key findings? (cont.) 3. In country X, the market value is forecast to expand strongly up to 2016 although annual policies will continue to be heavily outnumbered by single-trip policies Single - trip policies Annual policies GWP Policies (million) 20 GWP (USD million) 800 15 600 10 400 5 200 Note country X is revealed in the report itself Source: Finaccord analysis 0 2012 2016 Web: www.finaccord.com. E-mail: info@finaccord.com 14 0

What are some of the key findings? (cont.) 4. Key findings from the executive summary include: the estimated number of foreign trips (lasting one night or more) across this region increased from 162 million in 2008 to 219 million in 2012, which equates to a compound annual growth rate of 7.8% during this period; most foreign travellers from these ten countries do not venture beyond the Asia-Pacific region itself, and on average business trips account for around a fifth of all travel; across its various subsidiaries, AIG was found to be the leading insurance and assistance provider in this region, as measured by the number of partnerships held with travel trade, transportation and financial organisations; gross written premiums from stand-alone travel insurance and assistance are forecast to increase to USD 5.24 billion in 2016 which, after taking inflation into account, would represent an increase of 5.6% per year between 2012 and 2016. Web: www.finaccord.com. E-mail: info@finaccord.com 15

What is the cost and format? Travel Insurance and Assistance in the Asia-Pacific Region is available as a standard PDF document. The PartnerBASE and market data annexe that accompany it at no further charge are in Excel format. Costs for this research set, other international titles on the same subject and other related titles available at the time of publication are as follows: REPORT PRICE * Travel Insurance and Assistance in the Asia-Pacific Region Travel Insurance and Assistance in the Middle East Travel Insurance and Assistance in North and Latin America Travel Insurance and Assistance in Northern, Central and Eastern 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, Central and Eastern Europe Insurance and Assistance linked to Payment Cards and Bank Accounts in Southern and Western Europe GBP 2,995 GBP 1,795 GBP 1,995 GBP 2,495 GBP 2,495 GBP 3,995 GBP 2,495 GBP 2,495 * For UK-based clients, VAT at the prevailing rate will be added to the basic price. Costs quoted are for a single site user licence only. For a corporate user licence, please see the final slide for further details. Invoices can be paid in EUR or USD, at the prevailing exchange rate, if preferred. Web: www.finaccord.com. E-mail: info@finaccord.com 16

What other reports are available? Country-specific reports about travel insurance and assistance in over 40 different countries are also available, again as standard PDF documents with PartnerBASE datasets and market data annexes both in Excel format. Prices for each country are as follows: TRAVEL INSURANCE AND ASSISTANCE IN... Argentina GBP 795 Finland GBP 595 Netherlands GBP 595 South Africa GBP 795 Australia GBP 795 France GBP 595 New Zealand GBP 595 South Korea GBP 795 Austria GBP 595 Germany GBP 595 Norway GBP 595 Spain GBP 595 Bahrain GBP 595 Hong Kong GBP 595 Oman GBP 595 Sweden GBP 595 Belgium GBP 595 India GBP 795 Poland GBP 595 Switzerland GBP 595 Brazil GBP 795 Indonesia GBP 795 Portugal GBP 595 Taiwan GBP 595 Canada GBP 795 Ireland GBP 595 Qatar GBP 595 Turkey GBP 595 Chile GBP 795 Italy GBP 595 Romania GBP 595 UAE GBP 595 China GBP 795 Japan GBP 795 Russia GBP 595 UK GBP 595 Czech Republic GBP 595 Kuwait GBP 595 Saudi Arabia GBP 595 USA GBP 795 Denmark GBP 595 Mexico GBP 795 Singapore GBP 595 * For UK-based clients, VAT at the prevailing rate will be added to the basic price. Costs quoted are for a single site user licence only. For a corporate user licence, please see the final slide for further details. Invoices can be paid in EUR or USD, at the prevailing exchange rate, if preferred. For acquisition of multiple reports, please contact Finaccord - discounts may be available. Web: www.finaccord.com. E-mail: info@finaccord.com 17

How can the research be purchased? Simple. Just go to the relevant area of the Finaccord web site available at www.finaccord.com/order_travel_insurance_assistance_reports.htm and fill in the online order form, clearly indicating: report required type of corporate user licence, if required * billing name address and e-mail address purchase order number, if applicable Please allow up to one working day for the delivery of electronic copy by e-mail. * For the corporate user licence please choose one of the following options: 1. One office, one country: no supplement over and above basic cost of reports ordered 2. Multiple offices, one country: additional 20% over and above basic cost of reports ordered 3. Multiple offices, two to ten countries: additional 50% over and above basic cost of reports ordered 4. Global (unlimited offices in unlimited countries): additional 100% over and above basic cost of reports ordered VAT at the prevailing rate will be added to the price of any corporate user licence acquired by UK-based buyers. Web: www.finaccord.com. E-mail: info@finaccord.com 18