Travelling well: Rising international travel numbers and higher incomes ensure growth

The Travel Insurance industry has grown strongly over the past five years. Revenue growth is linked to the performance of financial markets, the number of Australians travelling overseas and the propensity of consumers to demand travel insurance products. Overall, industry revenue is forecast to grow at an annualised 4.2% over the five years through 2016-17. Revenue is expected to increase by 1.2% in the current year, to reach $987.7 million, largely driven by continual growth in travel by more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • The steady rise in international travel by Australians is supporting industry demand
  • The proliferation of online insurance providers has increased industry competition
  • A forecast rise in discretionary income is likely to encourage longer more expensive holidays
  • Industry Report - Industry SWOT Analysis Chapter

    The Travel Insurance industry is in the mature stage of its life cycle. Industry value added, which measures an industry's contribution to the overall economy, is forecast to grow at an annualised 1.6% over the 10 years through 2021-22. This represents an underperformance of overall GDP, which is projected to rise at an annualised 2.5% over the same period, indicating the industry's contribution to the overall economy is declining. Over this period, consumer uptake of travel insurance will remain discretionary in nature, and often will depend on travel locations, with longer trips abroad more likely to attract the purchase of travel insurance...purchase to read more.

    Additional Insights for the Travel Insurance Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Travel Insurance Industry are

  • Ability to effectively manage risk
  • Provision of a related range of goods and services
  • Having a cost-effective distribution system
  • IBISWorld analysts also discuss how external factors such as Real household discretionary income and Consumer sentiment index in the Travel Insurance industry impact industry performance..

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    What's in this report

    What is the Travel Insurance Industry?

    The Travel Insurance industry underwrites (i.e. assumes, pools and spreads out risk of financial losses over policyholders in exchange for premiums) travel insurance policies. Coverage can include losses from trip cancellation and delay, lost baggage and medical emergencies.

    Industry Products
  • Cancellation insurance
  • Delay insurance
  • Emergency medical insurance
  • Personal item loss insurance
  • Industry Activities
  • Luggage insurance
  • Travel delay and cancellation insurance
  • Loss of income insurance
  • Overseas medical insurance
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household discretionary income
  • Consumer sentiment index
  • Demand from travel agency and tour arrangement services
  • International travel by Australians
  • Trade-weighted index

  • Current Performance
  • Travellers’ behaviour
  • Online sales
  • Travel insurance distribution
  • Reinsurance expenses
  • Profit and participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Travel trends
  • Online sales
  • Distributors
  • Profit margins
  • Table: Travel Insurance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Travel Insurance Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • International Airlines
  • Travel Agency and Tour Arrangement Services
  • Professional Services
  • Consumers

  • Key Selling Industries
  • General Insurance
  • Insurance Brokerage

  • Products & Services
  • Cancellation insurance
  • Emergency medical insurance
  • Delay insurance
  • Personal item loss insurance
  • Chart: Travel Insurance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People between 31 and 45 years
  • People between 46 and 65 years
  • People between 19 and 30 years
  • People over 65 years of age
  • People aged 18 years and under
  • Chart: Major Market Segmentation for the Travel Insurance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Travel Insurance

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Travel Insurance Industry

  • Industry Globalization
    Great Lakes Australia, Allianz Australia Limited, Suncorp Group Limited, QBE Insurance Group Limited,
  • Table: Great Lakes Australia - financial performance
  • Table: Allianz Australia Limited - financial performance
  • Table: Suncorp Group Limited - financial performance
  • Table: QBE Insurance Group Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Travel Insurance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Travel Insurance Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Authorised Representatives
  • Independent retailers of insurance policies that deal directly with consumers.
  • Coverage
  • The range of unforeseen events in which travel insurance will pay out.
  • Distributors
  • Companies that issue insurance on behalf of the underwriter.
  • Reinsurance
  • A type of insurance that is usually purchased by an insurance company as a risk management tool.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Travel Insurance market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Travel Insurance:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Travel Insurance market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Travel Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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