Finaccord estimates the global market for stand-alone travel insurance and assistance to be 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

1. ITIC Barcelona 2012
Travel insurance: opportunities
in developing markets
Simon Tottman
1st November 2012
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2. ITIC Barcelona 2012
Introduction
 Finaccord estimates the global market for stand-alone
travel insurance and assistance to be 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?
 What particular local challenges are faced when entering
and operating in young or developing markets?
 Which sales and distribution channels will play a key role
in this expansion of this industry?
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3. ITIC Barcelona 2012
Relative size of outbound travel markets
Estimated number of foreign trips lasting one night or more, 2012 (million)
100
87
80 78
71
60 54
40 34
26
20 16
8 6
0
France Germany UK USA Australia Brazil Russia India China
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4. ITIC Barcelona 2012
Recent growth trends in foreign travel
Compound annual growth in the number of foreign trips, 2008-2012
20%
15% 14.2%
10.2%
10% 9.3%
5.6%
5% 3.3%
0.3% 0.3% 0.1%
0%
-5%
-6.1%
-10%
France Germany UK USA Australia Brazil Russia India China
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5. ITIC Barcelona 2012
Other factors affecting policy uptake, potential
market size and the distribution landscape
 ‘Local’ outbound travel to neighbouring countries,
especially by road / rail as opposed to by air (e.g. from
China and within the Middle East).
 Non-exclusive distribution agreements with banks and
other types of organisation (e.g. in China and Russia).
 Decentralised travel agency networks (e.g. in China).
 Cultural, religious and regulatory considerations (e.g.
takaful products in the Middle East and Asia-Pacific).
 Travel booking habits, the state of technological
development, and the strength of face-to-face culture.
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6. ITIC Barcelona 2012
Distribution channels used for travel insurance
Travel trade Insurance company Bank or similar
Insurance broker Insurance aggregator Other
100%
80%
60%
40%
20%
0%
France Germany UK USA Australia Brazil Russia India China
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7. ITIC Barcelona 2012
Provision by travel agents and tour operators
% of travel agents and tour operators offering travel insurance
100% 98% 100%
100% 96%
86% 89% 87%
80%
80%
71%
60%
40%
20%
0%
France Germany UK USA Australia Brazil Russia India China
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8. ITIC Barcelona 2012
Provision of stand-alone cover by banking organisations
% of banks and similar organisations offering stand-alone travel policies
100%
80%
59% 61%
58%
60%
41%
40%
22%
20% 17%
5% 3% 5%
0%
France Germany UK USA Australia Brazil Russia India China
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9. ITIC Barcelona 2012
Provision linked to banking products
% of payment card and bank account products featuring comprehensive travel cover
100%
80%
60%
40% 35%
30%
27%
24%
20% 16% 16% 15%
13%
5%
0%
France Germany UK USA Australia Brazil Russia India China
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10. ITIC Barcelona 2012
Provision of insurance by mobile phone operators
% of country-specific operators offering each type of insurance and assistance
Mobile phone insurance 36%
Mobile gadget insurance 13%
Bill payment protection insurance 4%
Identity protection insurance / assistance 1%
Motor insurance 1%
Household insurance 2%
Travel insurance / assistance 9%
Accident insurance 9%
Health insurance 3%
Life insurance 6%
Home assistance 6%
Legal assistance 5%
Medical assistance 10%
Road assistance 7%
Miscellaneous insurance / assistance 7%
0% 10% 20% 30% 40% 50%
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11. ITIC Barcelona 2012
Provision of travel policies by mobile phone operators
% of country-specific operators offering travel insurance / assistance
Unweighted Weighted
6%
Europe
6%
0%
Africa & Middle East
0%
12%
Asia Pacific
32%
37%
Latin America
32%
0%
North America
0%
0% 10% 20% 30% 40% 50%
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12. ITIC Barcelona 2012
Any questions?
Sources and related Finaccord publications:
Travel Insurance and Assistance in Major Global Markets
Travel Insurance and Assistance in Northern and Central Europe
Travel Insurance and Assistance in Southern and Western Europe
Travel Metrics: Consumer Approaches to Travel Insurance and Assistance in Europe
Bancassurance in China
Life and Non-Life Bancassurance in Europe
Global Mobile Operators: Strategies in Payments, Banking, Insurance and Assistance
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
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