2013-01-29 14:40:48 - New Financial Services research report from Datamonitor is now available from Fast Market Research

The market witnessed a 7.6% fall to GBP706.3m in 2011, from GBP764.8m in 2010, according to figures from the Association of British Insurers (ABI). Industry experts interviewed by Datamonitor attribute this fall to two key factors; continued low levels of trips abroad, and the increasing popularity of policies sold alongside added value accounts, where premiums can be a matter of a few pounds a month.

Scope

* Develop strategies to achieve growth in new business as the economic climate continues to hinder travel abroad.
* Benchmark against your peers within the UK travel insurance market, analyzing your strengths and weaknesses as a provider.
* Identify new distribution opportunities as consumers look for alternative avenues such as added value accounts.
* Enhance

knowledge of the macro economy and how it drives or inhibits the sale of travel insurance.


Full Report Details at
- www.fastmr.com/prod/531047_uk_travel_insurance_2012.aspx


Report Highlights

In 2011, the percentage of premium income generated from annual multi trip policies increased by 5.1 percentage points to account for 67.4% of travel insurance GWP. This recent growth is an extension of a pattern of steady growth in annual policy popularity over the last five years.

Travel insurance has widespread product penetration for a non-compulsory product, with only 8% of consumers not purchasing cover for their last overseas trip. This product penetration can be explained by increasing consumer awareness of the benefits of insurance as potentially high medical costs are highlighted in the press.

Conditions will remain competitive over the next five years, resulting in modest premium rate increases, The market will remain an attractive one in which to write business as a growth in the number of trips abroad is forecast to increase the number of policies sold.

Reasons to Get this Report

* What are consumers travelling habits as a result of the economic climate? How has this changed over the last five years?
* What will drive claims costs, and what are the options open to insurers to limit and mitigate claims losses?
* Who are the main insurers are who are the leading brands for travel insurance?

Partial Table of Contents:

OVERVIEW
* Catalyst
* Summary

EXECUTIVE SUMMARY
* Total GWP for the travel insurance market fell in 2011

* The travel insurance market decreased by 7.6% in 2011

* Annual policies remain the most popular travel product

* The proportion of GWP from annual travel policies continued to grow in 2011

* Profitability improved as fewer consumers travel abroad

* The gross loss ratio in the travel insurance market improved in 2011

* Average claims costs have increased in line with medical expenses

* However, the overall claims bill fell as fewer consumers claimed
* The average cost of a travel insurance claim increased significantly in 2011
* Medical expenses are continuing to increase

* 90% of consumers traveled with some form of cover

* Low policy costs and awareness of high medical costs are supporting uptake

* Online arranging accounts for 51% of all policies

* Online direct and aggregators are responsible for over half of all policies

* The travel insurance market is forecast to reach GWP of GBP859m by 2016

* The market will grow steadily as the economy recovers

MARKET CONTEXT
* Introduction
* Total GWP for the travel insurance market fell in 2011

* The travel insurance market decreased by 7.6% in 2011

* Annual policies remain the most popular travel product

* The proportion of GWP from annual travel policies continues to grow in 2011
* In 2011 the average cost of single trip policies surpassed the cost of annual policies
* The number of annual multi trip policies has increased at the expense of single trip policies

* Profitability improved as fewer consumers travel abroad

* The gross loss ratio in the travel insurance market improved in 2011

* Average claims costs have increased in line with medical expenses

* However, the overall claims bill fell as fewer consumers claimed
* The average cost of a travel insurance claim increased significantly in 2011
* Medical expenses are continuing to increase

* The number of visits abroad grew slightly in 2011

* The number of overseas trips has begun to increase again
* Almost half of UK consumers did not travel abroad in the past year

* Holiday trips dropped by 8.7 million during the recession

* Consumers reduced travel spending during the economic downturn
* Business and family trips are also increasing once more
* Q2 2011 saw a sharp jump in visits abroad
* Visits to all geographic regions fell in frequency during the recession, but many are witnessing a recovery

* Added value accounts represent a large proportion of annual policies

* Consumers are attracted to the simplicity and usefulness of bundled current accounts
* Regulatory attention is changing the way AVA travel insurance is sold
* The market continues to be split between basic and premium policies

* Concerns over the EHIC are ongoing

* The European Health Insurance Card is being challenged by European health providers

Full Table of Contents is available at:
-- www.fastmr.com/catalog/product.aspx?productid=531047&dt=t

About Datamonitor

The Datamonitor Group is a world-leading provider of premium global business information, delivering independent data, analysis and opinion across the Automotive, Consumer Markets, Energy & Utilities, Financial Services, Logistics & Express, Pharmaceutical & Healthcare, Retail, Technology and Telecoms industries. Datamonitor's market intelligence products and services ensure that you will achieve your desired commercial goals by giving you the insight you need to best respond to your competitive environment. View more research from Datamonitor at www.fastmr.com/catalog/publishers.aspx?pubid=1002

About Fast Market Research

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