Industry Analysis & Industry Trends
The growth trajectory of the Travel Insurance industry over the past five years has been a roller-coaster ride. Revenue growth is largely attributable to the volatility of the financial market, as well as the consumer propensity to demand travel insurance products. Overall, IBISWorld estimates that industry revenue will grow at an annualised 5.2% over the five years through 2014-15, boosted by the strong recovery in 2010-11. Revenue is forecast to grow by 6.7% in 2014-15, to reach $869.0 million, driven by continual growth in tourism by Australians.
The global financial crisis did not exhaust Australians' enthusiasm for travel, and the number of international trips taken by Australians has increased at an annualised 6.4% over the past five years... purchase to read more
Industry Report - Industry Investment Chapter
The Travel Insurance industry exhibits medium levels of capital intensity. IBISWorld estimates that the industry's labour-to-capital ratio is 1:0.13, meaning that for every dollar paid as wages, $0.13 is required for investment into capital. This is due to a large portion of industry 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 returns from invest often required constant maintenance by skilled 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