Industry Analysis & Industry Trends
The path trodden by the Travel Insurance industry in the past five years has been full of ups and downs. Seesawing revenue can largely be attributed to the volatility of the financial market, rather than the underlying demand for travel insurance products. Overall, IBISWorld estimates that industry revenue will grow at an annualised 1.3% over the five years through 2013-14. Revenue is forecast to grow by 2.0% in 2013-14, to reach $772.6 million.
The global financial crisis did not exhaust Australians' enthusiasm for travel. The number of international trips taken by Australians has increased at an annualised 8.8% over the past five years. This is mainly attributed to a strong Australian dollar, which makes overseas travel relatively cheaper... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Travel Insurance industry is in the mature stage of its life cycle. Industry value added, which measures the industry's contribution to the overall economy, is estimated to grow at an annualised 2.4% over the 10 years through 2018-19. This figure is slightly lower than the 2.6% per annum GDP growth forecast for the same period, indicating that the industry is growing slightly slower than the overall economy.
Despite alluring high profit margins within the industry, the number of businesses is expected to remain relatively stable over the next five years. Consumers generally prefer well-established insurance operators with a long track record of stability and reliability... purchase to read more