Travel Insurance Distribution Channels: Finding the right mix for European markets

Distribution Channels for Travel Insurance and Assistance

© Finaccord Ltd., 2013 Web: www.finaccord.com, E-mail: [email protected] 1

Distribution Channels for

Travel Insurance and Assistance:

Finding the Right Mix for European Markets

Presentation at the Uniglobal Travel Insurance Forum

Prague, December 5th – 6th 2013



Introduction

Finaccord estimates that the global market for stand-

alone 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?



Relative size of outbound travel markets

Estimated number of foreign trips lasting one night or more, 2012 (million)

26

87

54

69

8 6

34

15

83

0

20

40

60

80

100

France Germany UK USA Australia Brazil Russia India China



Recent growth trends in foreign travel

Compound annual growth in the number of foreign trips, 2008-2012

0.3% 0.3%

-6.1%

-0.5%

9.1%

3.3%

5.6%

8.2%

16.1%

-10%

-5%

0%

5%

10%

15%

20%




Distribution channels used for stand-alone travel insurance

0%

20%

40%

60%

80%

100%


Travel trade Insurance company Bank or similar

Insurance broker Insurance aggregator Other



Types of travel policy held by consumers

in six key European countries

0%

20%

40%

60%

80%

100%

France Germany Italy Netherlands Spain UK Average

Stand-alone (single trip) Stand-alone (annual)

Included with holiday or travel ticket Packaged with banking product

More than one type of policy .



Case study: Availability of stand-alone travel policies

from various types of distributor in Italy, 2012

% of organisations offering stand-alone travel cover

84.3%

43.8%

75.0%

58.3%

100.0%

4.9%

5.6%

44.9%

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

Travel agents / tour operators

Online travel specialists

Airlines

Ferry operators

Railway operators

Banking organisations

Specialised card providers

Total



Case study: Proportion of credit card products in Italy

that feature various types of travel benefit, 2012

20.6%

46.1%

2.2%

9.4%

47.9%

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

Comprehensive travel cover

Travel inconvenience cover

Travel health cover

Travel assistance

Travel accident cover



Case study: Competitor share of partnerships for stand-

alone travel insurance and assistance in Italy, 2012:

based on partnerships with travel trade organisations

Mondial Assistance,

45.8%

Europ Assistance,

22.9%

AMI Assistance, 15.6%

Fondiaria Sai, 4.2%

Global Assistance,

3.1%

Unipol Assicurazioni,

2.1%

others, 6.3%



Provision of insurance by mobile phone operators

% of 255 country-specific operators offering each type of insurance and assistance

36%

13%

4%

1%

1%

2%

9%

9%

3%

6%

6%

5%

10%

7%

7%

0% 10% 20% 30% 40% 50%

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



Provision of travel policies by mobile phone operators

% of country-specific operators offering travel insurance / assistance

Unweighted Weighted

6%

0%

12%

37%

0%

6%

0%

32%

32%

0%

0% 10% 20% 30% 40% 50%

Europe

Africa & Middle East

Asia Pacific

Latin America

North America



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

Travel Insurance Distribution Channels: Finding the right mix for European markets

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