Industry Analysis & Industry Trends
The growth trajectory of the Travel Insurance industry has been volatile over the past five years. Revenue growth is linked to the performance of financial markets and consumer propensity to demand travel insurance products. Overall, industry revenue is forecast to grow at an annualised 1.0% over the five years through 2015-16. Revenue is projected to increase by 1.4% in 2015-16, to reach $885.4 million, largely driven by continual growth in travel by Australians.
The strong Australian dollar for most of the past five years has bolstered Australians' enthusiasm for travel, and the number of international trips taken by Australians has increased consistently over the past five years. This trend has persisted even as the Australian dollar depreciated since 2012-13... purchase to read more
Industry Report - Industry Investment Chapter
The Travel Insurance industry exhibits a medium level of capital intensity. For every dollar paid as wages, an estimated $0.13 is spent on capital investment. This is due to a large portion of activities being carried out by employees. The industry generally demands highly skilled employees specialising in finance, mathematics and statistics, risk management or actuarial science. The risk profile of consumers and the return on investments often require constant rebalancing by skilled and highly educated employees. This means that the average wage per employee in the industry is high, as is typical of industries in the insurance sector... purchase to read more