Travel Insurance in the Asia- Pacific Region and Global ... › item_files › ce16 › ... · market research report released in November 2013; - coverage of Australia, China, Hong

© Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: [email protected]

Travel Insurance in the Asia-Pacific Region and Global Trends in Consumer Behaviour

1

Travel Insurance in the Asia-

Pacific Region and Global Trends

in Consumer Behaviour

ITIC Asia-Pacific International Travel

and Health Insurance Conference

18th June 2014



2

Travel Insurance in the Asia-Pacific Region

- Analysis mainly from Travel Insurance and Assistance in the Asia-Pacific Region

market research report released in November 2013;

- coverage of Australia, China, Hong Kong, India, Indonesia, Japan, New Zealand,

Singapore, South Korea and Taiwan.



3

Travel insurance and assistance GWP in the

Asia-Pacific Region in a global context, 2013

Americas, 34.5%

Europe, 33.4%

Asia-Pacific, 29.2%

Africa and the Middle East, 2.8%

Source: Finaccord Travel Insurance and Assistance reports

Global market value

= USD 13.8 billion



4

Number of overseas trips from China and other

countries in the Asia-Pacific Region, 2008 to 2012

0

50

100

150

200

250

Source: Finaccord Travel Insurance and Assistance in the Asia-Pacific Region report

million

2008

2009

2010

2011

2012

Other countries: CAGR = 3.9%

China: CAGR = 16.1%

162.1

161.4

182.7

199.4

218.8

Total: CAGR = 7.8%



5


Market for travel insurance and assistance

in the Asia-Pacific region, 2008 to 2012

0

1

2

3

4

5

0

20

40

60

80

100

2008 2009 2010 2011 2012

Single-trip policies Annual policies GWP

Policies (million) GWP (USD billion)

GWP, 2012 = USD 3.63 billion

No. single-trip policies, 2012 = 77.75 million

No. annual policies = 12.13 million



6

Market for travel insurance and assistance in

China and other countries in the Asia-Pacific

region, 2008 to 2012 : number of policies


million

2008

2009

2010

2011

2012


China: CAGR = 22.4%

64.7

65.8

74.1

81.6

89.9

Total: CAGR = 8.6%

0

20

40

60

80

100



7



region, 2008 to 2012 : gross written premiums


USD billion

2008

2009

2010

2011

2012


China: CAGR = 25.7%

2.60

2.65

2.87

3.28

3.63

Total: CAGR = 8.7%

0

1

2

3

4



8

Key providers in travel insurance and assistance in

the Asia-Pacific region: share of partnerships of travel

trade, transportation and financial organisations


AIG, 16.3%

Allianz, 8.2%

ACE, 6.3%

Munich Re, 4.8%

Tokio Marine Holdings, 3.6%

Government of India, 3.5%

China Pacific Insurance

Company, 3.0%

Bajaj Finserv, 2.9%

Ping An Insurance

Company of China, 2.9%

Dongbu Group, 2.8%

other, 45.5%



9

Number of overseas trips from China and other

countries in the Asia-Pacific Region, 2012 and 2016



China: CAGR = 14.9%

Total: CAGR = 8.7%

0

100

200

300

400

2016

million

2012

218.8

304.9



10



region, 2012 and 2016: number of policies


million


China: CAGR = 17.1%

Total: CAGR = 8.6%

2016

2012

89.9

124.9

0

50

100

150



11



region, 2012 and 2016: gross written premiums


USD billion


China: CAGR = 20.7%

Total: CAGR = 9.6%

0

1

2

3

4

5

6

2016

2012

3.63

5.24



12

- Analysis from Travel Metrics consumer research reports to be released in July 2014;

- coverage of Australia, Canada, France, Germany, Italy, Spain, UK and US;

- 1,000 consumers surveyed in first seven countries, 2,000 in the US;

- results show unweighted averages across all eight countries plus maximum values

recorded in any single country.

Global Trends in Consumer Behaviour



13

Consumer propensity to travel abroad or

within own country for a week or more, 2014

Source: Finaccord Travel Metrics reports for Australia, Canada, France, Germany, Italy, Spain, UK and USA

Abroad only (for any period) – 14.2%

(maximum value: Canada – 31.6%)

Own country only (for a week or more) – 22.3%

(maximum value: Australia – 30.1%)

Both abroad (for any period) and in own

country (for a week or more) – 35.0%

(maximum value: Germany – 53.2%)

No – 28.5%

(maximum value: US – 54.7%)



14

Propensity of consumers travelling

abroad to acquire travel insurance, 2014


Yes – 69.2%

(maximum value: UK – 89.7%)

No – 30.8%




15

Types of travel insurance acquired by

all travelling consumers, 2014 (1)

Note - analysis includes some travellers with more than one kind of policy


Single-trip policy – 46.6%


Annual policy – 20.5%


Automatic policy in price of

holiday or travel ticket – 14.1%

(maximum value: Italy – 27.9%)

Automatic policy with credit card

or bank account – 18.8%

(maximum value: France – 47.2%)



16

Types of travel insurance acquired by

all travelling consumers, 2014 (2)

Note – non-standard consumer policies include specialist backpacker, domestic-only, expatriate, gap-year or student, older

traveller, pre-existing medical condition and winter sports policies


Standard consumer policy – 79.5%


Business policy – 4.0%

(maximum value: Spain – 5.9%)

Non-standard consumer policy – 16.6%

(maximum value: UK – 28.5%)



17

Distribution channels used to acquire

stand-alone travel insurance, 2014

Direct from insurer – 38.7%


Airline – 14.0%


Bank – 7.4%


other – 20.2%


Travel agent or tour operator – 19.7%

(maximum value: Italy – 27.3%)

Note – other distribution channels include automotive associations, cashback websites, employers, insurance aggregators,

insurance brokers, the Post Office, and supermarkets or other retailers




18

Distribution interfaces used to acquire

stand-alone travel insurance, 2014

Face-to-face – 36.3%


Online – 52.5%


Phone or post – 11.2%





19

Devices used to acquire stand-alone

travel insurance online, 2014

Laptop / desktop – 88.7%


Tablet – 8.2%


Mobile phone – 3.0%





20

Cover penetration rates for travel insurance

acquired by all travelling consumers, 2014


% of insured travellers with cover for risk

46.7% (maximum value: Australia – 63.7%)

33.8% (maximum value: UK – 52.6%)






69.2% (maximum value: Canada – 75.9%)


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

Accidents incurred while travelling

Assistance in the event of personal or medical emergencies

experienced by you and / or other travelling family members

Assistance in the event of personal or medical emergencies

experienced by family members remaining at home

Bankruptcy of a scheduled airline

Flight or trip delay

Loss, stolen or damaged baggage or belongings

Medical expenses incurred while travelling

Personal liability

Trip cancellation, postponement or interruption



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Any questions?



Finaccord is a leading market research, publishing and consulting company specialising in financial

services. We provide our clients with insight with a particular focus on marketing and distribution

strategies, including affinity and partnership marketing.

Our areas of expertise include: affinity and partnership marketing; automotive financial services;

bancassurance; commercial non-life insurance brokers; consumer intelligence; extended warranties

and insurance for white, brown and grey goods; home emergency insurance and assistance;

insurance and assistance linked to payment cards and bank accounts; mobile gadget and phone

insurance; professional indemnity insurance; retailer payments, banking, insurance and assistance;

road assistance; small business insurance; trade credit insurance; and travel insurance and

assistance.

Our international network of consultants is able to deliver information quickly and accurately across a

range of countries worldwide, basing research projects on robust data and knowledge.

Contact us

The Office Farringdon

24 Greville Street

London,

EC1N 8SS

Phone: +44 20 3178 2556

Fax: +44 20 7198 7902

Email: [email protected]

www.finaccord.com

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Travel Insurance in the Asia- Pacific Region and Global ... › item_files › ce16 › ... · market research report released in November 2013; - coverage of Australia, China, Hong