Industry Analysis & Industry Trends
Travel insurers faced steep revenue declines during the recession. Declining consumer disposable income meant fewer people were traveling and purchasing travel insurance. However, the industry returned to growth in 2010 as consumers became more sensitive to the potential losses associated with airline delays and cancellations, prompting them to buy travel insurance. The industry is expected to continue growing over the next five years and expand into niche markets catering to students and business travelers.... purchase to read more
Industry Report - Starting a New Business Chapter
The Travel Insurance industry has moderate barriers to entry. A new entrant must conform to state and federal regulations to establish a presence in the industry. Although market share concentration is low, new entrants face competition from well-established brands.
A new entrant must apply for a Certificate of Authority to supply insurance products. This certificate must be obtained not only for the state of domicile but in any other state the insurer wishes to conduct business. The insurer must also submit regular reports and comply with set standards for minimum capital and solvency requirements.
Additionally, new entrants must have significant capital to be able to price premiums at or near market rates... purchase to read more