Travel Insurance and Assistance in North and Latin America

Travel Insurance and Assistance in North and Latin America

© Finaccord Ltd., 2014

Expertise in financial services Web: www.finaccord.com. E-mail: [email protected] 1

Travel Insurance and Assistance

in North and Latin America Report Prospectus

February 2014

http://www.finaccord.com/

mailto:[email protected]




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?

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What is the research?

Finaccord's report titled Travel Insurance and Assistance in North and Latin America investigates

the often fast-growing markets for stand-alone travel insurance and assistance in six countries in

this region, namely Argentina, Brazil, Canada, Chile, Mexico and the US.

Across each of these countries, the study investigates trends in both business and leisure travel

between 2009 and 2013, 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 North and Latin America, thereby filling an important gap in a market that is likely to increase in

value by almost 40% in nominal terms between 2013 and 2017.






What methodology has been used?

Finaccord’s investigation into the travel insurance and assistance market in North and Latin America

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 2009 and 2013, 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 1,600 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 810 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.






How do organisations surveyed break down?

Segmentation by type of firm Segmentation by geography

Chile, 102

Mexico, 97

Canada, 161

Argentina, 122

Brazil, 138

USA, 190

Travel agents / tour

operators, 409

Online travel

specialists, 50

Airlines, 96

Ferry

operators, 10

Railway

operators, 10

Banking

organisations, 185

Specialised card

providers, 50






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

North and Latin America including: data spanning 2009 to 2013 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 2017.

3. Argentina: an in-depth study of the market for travel insurance and assistance in Argentina

including: data spanning 2009 to 2013 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 2017.

4 - 8: Brazil, Canada, Chile, Mexico and the US (structure as for Argentina).






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 six

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 810 key distributors, plus a market data annexe, both in

Excel format.






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 North and Latin

America, their growth rates (since 2009) and their future prospects (to 2013);

• 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 810 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.






How can the PartnerBASE™ be used?

Select country

Search by

organisation

Filter by category

See operating model

Identify ultimate

holding companies

View partners

TRAVEL INSURANCE AND ASSISTANCE

Organisation Category Country Offered? Operating model Immediate partner(s) / brand(s) UHC(s)

MPB Travel Travel agents / tour operators US Yes External underwriter Travel Insured International Travel Insured International

MPH Travel Travel agents / tour operators Canada Yes External underwriter RBC Insurance RBC

Mundo Joven Argentina Travel agents / tour operators Argentina Yes External underwriter APRIL / Liberty Seguros APRIL Group, Liberty Mutual

Mundo Joven Mexico Travel agents / tour operators Mexico Yes External underwriter APRIL / QBE APRIL Group, QBE

Mundo Tour Travel agents / tour operators Chile Yes External underwriter Travel Ace Assistance / ACE Seguros Grupo IMAS, ACE






What does the market data annexe deliver?

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.

Country Variable (and units) 2009 2010 2011 2012 2013CAGR 2009 to

2013 (nominal)

CAGR 2009 to

2013 (real)2017

CAGR 2013 to

2017 (nominal)

CAGR 2013 to

2017 (real)

Country X Holiday trips (million) 1.8 2.1 2.4 2.6 2.7 10.5% 3.5 6.5%

Country X Business trips (million) 0.5 0.6 0.7 0.7 0.7 9.0% 0.9 5.4%

Country X Total trips (million) 2.3 2.7 3.0 3.2 3.5 10.1% 4.4 6.3%

Country X Number of single-trip policies (000s) 652.7 771.9 873.8 945.6 1,019.2 11.8% 1,393.7 8.1%

Country X Number of annual policies (000s) 62.2 74.5 86.4 93.5 102.0 13.2% 146.3 9.4%

Country X Total number of policies (000s) 714.9 846.3 960.2 1,039.1 1,121.3 11.9% 1,540.0 8.3%

Country X Total GWP (USD million) 52.0 62.9 74.1 82.8 91.2 15.1% 12.2% 142.5 11.8% 8.5%






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 Argentina, Brazil,

Canada, Chile, Mexico and the US;

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 North and

Latin America, 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 North and Latin America?

Save time researching the subject yourselves by accessing this publication.






What are some of the key findings?

1. The vast majority of travel insurance schemes are

run in conjunction with a single, external underwriter

Source: Finaccord analysis

0% 20% 40% 60% 80% 100%

Argentina

Brazil

Canada

Chile

Mexico

US

Average

External underwriter

Multiple external underwriters

Captive underwriter

JV underwriter

External broker

Captive broker

Other

Undisclosed






What are some of the key findings? (cont.) 2. Airlines serving Canadian travellers are the most likely

to sell travel insurance via their online booking service

% of airlines found to offer stand-alone travel policies, 2013

23.5%

37.5%

83.3%

25.0%

42.9%

57.1%

44.9%

0% 20% 40% 60% 80% 100%

Argentina

Brazil

Canada

Chile

Mexico

US

Average

Source: Finaccord PartnerBASE for Travel Insurance and Assistance in North and Latin America






What are some of the key findings? (cont.)

3. In country X, the market value is forecast to expand strongly up to 2017 although

annual policies will continue to be heavily outnumbered by single-trip policies

2013 2017

Single - trip policies Annual policies GWP

Policies (million) GWP (USD million)

Note – country X is revealed in the report itself

Source: Finaccord analysis

600

500

400

300

200

100

0

6

5

4

3

2

1

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

121 million in 2009 to 139 million in 2013, which equates to a compound annual growth rate of

3.6% during this period;

• most foreign travellers from these six countries do not venture beyond the Americas region itself,

and on average business trips account for around 17% of all travel;

• across its various subsidiaries, ACE 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 6.53 billion in 2017 which, after taking inflation into account, would represent an increase of

5.2% per year between 2013 and 2017.






What is the cost and format?

Travel Insurance and Assistance in North and Latin America 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:

* 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.

REPORT PRICE *

GBP 1,995

GBP 2,995

GBP 1,795

GBP 2,495

GBP 2,495

GBP 3,995

GBP 2,495

GBP 2,495


Travel Insurance and Assistance in the Asia-Pacific Region

Travel Insurance and Assistance in the Middle East

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






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:

* 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.

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

TRAVEL INSURANCE AND ASSISTANCE IN...






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.



http://www.finaccord.com/order_travel_insurance_assistance_reports.htm







Travel Insurance and Assistance in North and Latin America

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