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 - Industry Investment Chapter
The Travel Insurance industry has a moderate level of capital intensity. Industry operators typically invest $0.12 in capital equipment for every dollar of labor. Industry wages account for about 12.6% of industry revenue in 2015, while depreciation represents about 1.6%.
Travel insurers use information technology to track policies, payments and claims. Actuaries use computer systems to model insurance risk, which ensures that companies have proper reserves in the case of a catastrophic event. Operators have continued to improve their technology in order to provide better customer service, such as efficient customer responses and user-friendly websites. Despite this, the industry still requires personnel for selling, administering and processing travel insurance policies... purchase to read more