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 Investment Chapter
The level of capital intensity within the industry is low. IBISWorld estimates that the industry's labour-to-capital ratio is 1:0.09, meaning that for every dollar paid as wages, only $0.09 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 mathematics, statistics, risk management or actuarial science. This means that the average wage per employee in the industry is high, as is typical of industries in the insurance sector. The industry does not require much expensive equipment and machinery in its daily operations. The only significant capital investments are computers, software and programs... purchase to read more