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 - Starting a New Business Chapter
The Travel Insurance industry is characterised by a high level of barriers to entry. This is largely due to the strict level of regulatory requirements imposed on industry players, requiring them to be licensed and to report regularly to APRA. Policy and regulation also strongly impose a degree of capital assurance and solvency requirements for industry players.
Despite the industry being highly concentrated and dominated by large multinational companies, opportunities remain for new players in niche markets due to the generic offerings of these large corporations in travel insurance. However, there are already a number of smaller independent agents underwriting with a focus on customisation and customer service experience, which can prove a significant deterrent for new players... purchase to read more