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

The Travel Insurance industry has grown strongly over the past five years. The performance of financial markets, the number of Australians travelling overseas and the propensity of consumers to demand travel insurance products have contributed to revenue growth. Overall, industry revenue is expected to grow at an annualised 5.4% over the five years through 2017-18. Revenue is expected to increase by 5.3% in the current year, to total $1.1 billion, largely driven by continual growth in international travel by Australians.Despite a weak Australian dollar over the past five years, the increasing availability of low-cost airlines and travel deal aggregators has bolstered Australians' enthusiasm for travel...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 13-18
5.4%
Forecast Growth 18-23
Profit
Employment
442
Businesses
46

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 expensive holidays
  • Industry Report - Industry Investment Chapter

    The Travel Insurance industry exhibits a medium level of capital intensity. For every dollar paid as wages, an estimated $0.15 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. As a result, the average wage per employee in the industry is high, as is typical of industries in the insurance sector. Alt...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 Demand from travel agency and tour arrangement services and Real household discretionary income in the Travel Insurance industry impact industry performance..

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    What's in this report

    What is the Travel Insurance Industry?

    The 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
  • Demand from travel agency and tour arrangement services
  • Real household discretionary income
  • 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 aged 46 and 65
  • People aged 31 and 45
  • People aged 19 and 30
  • People aged over 65
  • 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
    Zurich Travel Solutions Pty Limited, Allianz Australia Limited, Suncorp Group Limited, QBE Insurance Group Limited,
  • Table: Zurich Travel Solutions Pty Limited - 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
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • 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 is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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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