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... purchase to read more
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 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
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... purchase to read more