Taking off: Travel insurance revenue will rise as operators expand to niche markets

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 Statistics & Market Size
Revenue
$3bn
Annual Growth 11-16
3.0%
Forecast Growth 16-21
Profit
Employment
4,364
Businesses
244

Industry Threats & Opportunities

  • The recent decline in oil prices is anticipated to boost travel rates in 2016, leading revenue to increase
  • Businesses investing in overseas operations have needed more insurance for increased business travel
  • Improving disposable income and favorable globalization trends will drive growth
  • 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 Insurers can reduce premiums as their policies increase if the overall level of risk of the portfolio decreases. New entrants do not have this scale and, therefore, can find it challenging to compete with established players.The substantial size of incumbent companies means they are well known and trusted by consumers and businesses. Mor...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
  • Management of a high quality assets portfolio
  • Having a cost effective distribution system
  • IBISWorld analysts also discuss how external factors such as International trips by US residents and Per capita disposable income in the Travel Insurance industry impact industry performance..

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    What's in this report

    What is the Travel Insurance Industry?

    This 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
  • Delay
  • Trip interruption
  • Emergency medical
  • Personal effects
  • Accidental death
  • Industry Activities
  • Providing trip protection and delay insurance
  • Providing baggage insurance or personal effects coverage
  • Providing emergency medical assistance
  • Providing accidental death coverage
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • International trips by US residents
  • Per capita disposable income
  • Natural disaster index
  • Number of adults aged 50 and older
  • World price of crude oil

  • Current Performance
    Slow but steady industry growthNew distribution channels respond to changes in travel
  • Chart: Revenue Growth

  • Industry Outlook
    Growth in online and mobile distribution channelsNiche travel markets present growth opportunities
  • 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
  • Consumers

  • Key Selling Industries
  • Copier & Office Equipment Wholesaling
  • Direct Mail Advertising
  • Print Advertising Distribution
  • Property, Casualty and Direct Insurance
  • Reinsurance Carriers

  • Products & Services
  • Delay
  • Trip interruption
  • Cancellation
  • Emergency medical
  • Personal effects
  • Accidental death
  • Chart: Travel Insurance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Individuals aged 50 to 70
  • Individuals aged 30 to 50
  • Individuals aged 30 and younger
  • 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
  • Profit
  • Wages
  • Loss and loss adjustment expenses
  • Other
  • 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
    AIG, American Express Company,
  • Table: AIG - financial performance
  • Table: American Express Company - 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 (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • International trips by US residents (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Claims
  • When the policy holder (consumer) experiences a loss and the insurer pays the agreed upon amount stated in the insurance policy.
  • Flash Sale
  • A very short period of time when a store sells products at much lower prices than usual
  • Premiums
  • The payment insurers receive for assuming part of the risk and potential loss for travel insurance.
  • Underwriting
  • The process where insurers assess the risks to insure and decide how much to charge for those risks.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Travel Insurance provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging 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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