TABLE OF CONTENTS 0.0 EXECUTIVE SUMMARY... 1

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1 TABLE OF CONTENTS 0.0 EXECUTIVE SUMMARY... 1 Trends in outbound foreign travel have been positive in recent years in most European countries although five markets remain in decline... 2 Overseas trips made for business purposes are especially significant in certain countries... 2 The UK accounts for almost 30% of the total European market value... 4 with some other markets notably large in spite of the small size of their population... 4 and others seemingly under-developed for one reason or another... 4 Annual policies have made least progress in Russia and Turkey... 4 Two groups account for up to 30% of Europe s travel insurance market value... 5 with no other group likely to command a market share of more than 8%... 6 A number of the leading groups attain prominence through operations in just one country... 7 Foreign trips are expected to rise up to 2018 in all but one of the countries researched... 7 and Turkey s travel insurance market seems destined to expand the most rapidly INTRODUCTION What is this report about? Rationale This report builds upon Finaccord's previous ground-breaking studies of this topic Methodology Primary research The survey covers 3,630 travel trade, transportation and financial organisations Market data External sources Travel insurance and assistance: how it all fits together The term 'travel insurance' can refer to protection from a heterogeneous range of risks and assistance companies play a fundamental role in the European travel insurance industry Definitions Terms and abbreviations Types of packaged travel insurance and assistance Operating models Weighted shares Currencies, exchange rates and inflation PartnerBASE Finaccord EUROPEAN OVERVIEW Introduction Underlying foreign travel markets Number of trips The number of foreign trips per annum has increased in most European countries with Poland, Romania and Switzerland experiencing the strongest growth On a per capita basis, foreign travel is most common in the Nordic countries and Switzerland There is a marked correlation between citizens' wealth and their outbound travel habits Purpose of trips In Poland, Portugal and Turkey, business travel is particularly important within the total Annual trends in business travel tend to be more volatile than those for holiday travel Destination of trips Over 70% of foreign travel in Europe is to destinations within the EU with travel outside of Europe most common among residents of Russia and Turkey FINACCORD (08/2015) I

2 Markets for travel insurance and assistance Policy numbers and value of premiums In real terms, the value of Europe s travel insurance market has been rising gently The UK is the largest market by a wide margin, more than twice the size of second-ranked Germany The Dutch and Norwegian markets for travel insurance are larger than might be expected while those of France and Sweden are comparatively small Policy volumes have been increasing most significantly in Poland, Romania and Turkey The travel insurance markets of both the Czech Republic and Italy have fallen back in recent years Across Europe as a whole, annual policies account for just over a third of total policies Market metrics Across the 20 countries, premiums per capita vary from around EUR 0.45 to EUR with the most expensive travel policies sold in Norway and Finland Distribution through travel trade, transportation and financial organisations Provision rates Travel agents / tour operators: though still high, provision rates have declined a little since Online travel specialists: the provision rate remains lower than through traditional travel organisations Airlines: close to four in five airlines researched have an arrangement for distributing travel cover Ferry operators: in terms of selling travel policies, ferry companies are much less active than airlines Railway operators: most countries researched feature only one national railway operator Insurance brands: in most countries, more than a half of major insurers sell stand-alone travel cover Banking organisations: Turkish banks display the highest provision rate for stand-alone policies Specialised card providers and lenders: these are less likely than regular banks to offer stand-alone cover Operating models The majority of travel insurance schemes involve a single external underwriter although the use of alternative models is widespread in certain markets Competitive landscape On an unweighted basis, partnerships with distributors are most concentrated in Sweden and Austria and least so in Russia and the UK Weighting partnerships reveals a more fragmented European market overall Subsidiaries of Allianz and Munich Re hold the highest number of distribution partnerships although the top eight groups account for less than a half of all relationships identified The potential exists to set up multi-country deals with some international travel groups Leading competitors Allianz and Munich Re also lead the way by market share of gross written premiums in a diverse market including many other international and national competitors with groups outside of the top 15 accounting for between 28% and 38% of the total market value Forecasts Underlying foreign travel markets Europe s outbound travel sector is expected to grow at a modest rate between 2014 and although some individual markets will grow significantly Markets for travel insurance and assistance This dynamic will feed through to further progress in the travel insurance and assistance market with its value across 20 countries likely to exceed EUR 4.5 billion by At the local level, the strongest growth (nominal and real) is expected to occur in Turkey AUSTRIA Introduction Underlying foreign travel market Business trips have tended to increase more quickly than holiday trips Accession of Croatia to the EU in 2013 has caused a surge in the share of trips to EU countries Market for travel insurance and assistance The stand-alone travel insurance market has grown faster than the underlying travel market largely due to a probable rise in the share of annual policies Distribution through travel trade, transportation and financial organisations FINACCORD (08/2015) II

3 Summary of organisations researched Provision rates Almost two thirds of organisations researched are distributors of stand-alone travel cover Operating models A majority of travel insurance schemes are organised through a single, external underwriter Competitor share of partnerships Europäische Reiseversicherung claims over a third of travel trade distribution partnerships in a sector that appears relatively concentrated making it the channel leader in both unweighted and weighted terms Allianz Global Assistance is the leader by number of partnerships in the transportation category although two competitors may hold a couple of the most important relationships Europäische Reiseversicherung and UNIQA are particularly active in partnering with banks with other insurers selling policies both directly and through partnerships with financial institutions UNIQA and Wiener Städtische attain greater prominence in the weighted analysis for this category Travel insurance and assistance linked to payment cards and bank accounts Comprehensive travel insurance policies are very commonly packaged with Austrian payment cards Other distribution channels Automotive clubs Both of Austria s main automotive clubs offer travel insurance to members Direct distribution by specialist travel insurers A number of specialist underwriters promote insurance directly to consumers Online aggregators and brokers Aggregator involvement in travel insurance is likely to have grown in recent years Travel health cover from a variety of underwriters can be bought from Care Concept Other online brands Other online brands include both international specialists and ones restricted to Austria and Germany Retailers Major retailers distribute travel insurance through captive travel agencies rather than directly Other types of distributor Leading competitors The eight leading travel insurers are likely to control between 95% and 99% of the market and the top two for over 60%, even using the most conservative assumptions AIG may be ranked as high as fifth in spite of the fact that it benefits from just one partnership Germany-based competitors include ERV, HanseMerkur and VHV (via VAV) Forecasts Underlying foreign travel market Austria s foreign travel market is likely to continue to expand between 2014 and Market for travel insurance and assistance causing the associated travel insurance sector to also move up in value BELGIUM Introduction Underlying foreign travel market The number of business trips has been growing at almost four times the rate of the number of holiday trips Belgian consumers have shown a slight tendency towards longer-haul travel in recent years Market for travel insurance and assistance The value of the Belgian travel insurance market grew consistently between 2010 and with annual policies accounting for an increasingly significant proportion of the total Distribution through travel trade, transportation and financial organisations Summary of organisations researched Provision rates Two thirds of the organisations researched are distributors of stand-alone travel cover FINACCORD (08/2015) III

4 Operating models Most distribution relationships are based around use of a single, external underwriter Competitor share of partnerships Two providers claim over a half of travel trade distribution partnerships with two others also fairly significant as providers in this field In weighted terms, Allianz Global Assistance is likely to derive the most business in this channel Allianz Global Assistance has the highest number of relationships in the transportation category although it is overtaken by two other providers in the weighted analysis of partnerships Among financial organisations, Europ Assistance and Inter Partner Assistance hold the most deals with four other providers named twice each and another dozen once each in a fairly fragmented sector AG Insurance, Ethias and KBC Assurances all become more visible in the weighted analysis Travel insurance and assistance linked to payment cards and bank accounts A significant proportion of Belgian payment cards feature some form of travel insurance Other distribution channels Automotive clubs All four automotive clubs have a travel insurance proposition for their members Direct distribution by specialist travel insurers Several specialists promote travel insurance directly to consumers Online aggregators and brokers Several aggregators have begun intermediating travel cover and brokers also constitute a viable distribution channel Other online brands Specialist online brands include Assudis, Protections Travel Insurance and World Nomads Retailers One major retailer offers travel insurance directly to its customers Other types of distributor Leading competitors Two competitors may account for almost a half of the total market value between them although as much as 25% may be dealt with by providers outside of the top six Having bought the travel insurance portfolio of De Europese, MAPFRE is now a significant competitor as is an insurer owned by Touring Club Belgium Forecasts Underlying foreign travel market The foreign travel market in Belgium is likely to continue growing between 2014 and Market for travel insurance and assistance resulting in modest growth in gross written premiums for travel insurance over the same period CZECH REPUBLIC Introduction Underlying foreign travel market Outbound travel from the Czech Republic hit a new low point in with business travel in particular having declined very significantly Trips to other EU countries account for over 85% of total trips Market for travel insurance and assistance Falling trips abroad have produced a corresponding decline in the travel insurance market Distribution through travel trade, transportation and financial organisations Summary of organisations researched Provision rates The vast majority of organisations that could offer travel cover actually do so in practice Operating models A number of banks utilise their own captive underwriters for travel insurance FINACCORD (08/2015) IV

5 Competitor share of partnerships One provider is the source of travel cover for over a third of travel trade entities researched with four other firms each holding between five and seven partnerships and the remaining seven between one and three ERV Evropská Pojišťovna is dominant in the weighted analysis of travel trade partnerships Six insurers benefit from at least one qualifying airline partnership with AIG Europe the incumbent provider to Czech Airlines In the financial sector, insurers hold between one and four distribution arrangements each The weighted analysis broadly reflects the size of specific banks and insurance companies Travel insurance and assistance linked to payment cards and bank accounts Comprehensive travel cover is a common feature of credit cards in the Czech Republic Other distribution channels Automotive clubs ÚAMK has begun marketing travel insurance to its members Direct distribution by specialist travel insurers Online aggregators and brokers In spite of its limited size, the Czech Republic hosts a number of insurance comparison sites Other online brands Retailers One retail brand has branched out into selling travel insurance Other types of distributor as has one mobile network operator Leading competitors Four competitors are likely to hold a market share in excess of 10% with the leading pair more or less equal by this measure In total, there are more than 20 entities underwriting travel cover in the Czech Republic Forecasts Underlying foreign travel market A more favourable economic outlook should bring about a resumption of growth in foreign travel Market for travel insurance and assistance which will bring about an improving picture in the travel insurance market DENMARK Introduction Underlying foreign travel market Outbound travel from Denmark has recovered strongly from a drop in with leisure trips slightly outpacing business trips Danish consumers have increasingly headed for nearby EU destinations or to North America Market for travel insurance and assistance The value of the Danish travel insurance market grew between 2010 and with a marked shift towards annual policies Danish citizens can no longer use their sundhedskort to cover medical costs in EEA countries Distribution through travel trade, transportation and financial organisations Summary of organisations researched Provision rates Over half of the organisations researched are distributors of stand-alone travel cover Operating models Organisations in Denmark generally partner exclusively with a single underwriter Competitor share of partnerships Gouda Rejseforsikring holds over a half of travel trade distribution partnerships with the remainder divided among only four other insurers Two companies are likely to control around 85% of business passing through this channel FINACCORD (08/2015) V

6 Seven providers have between one and three partnerships in the transportation category although one gaining in particular through its partnership with Scandinavian Airlines Most Danish insurance brands underwrite their own travel cover meaning that partnerships with financial institutions are mainly with banks and card issuers In some cases, buying travel cover is only open to customers with a household insurance policy Travel insurance and assistance linked to payment cards and bank accounts Comprehensive travel cover is a very common feature of premium payment cards in Denmark Other distribution channels Automotive clubs Direct distribution by specialist travel insurers Several specialists promote travel insurance directly to consumers Online aggregators and brokers Aggregators are an increasingly important feature of the Danish market Other online brands Managing general agents such as Dansk Rejseforsikring and safeaway are increasingly prominent Retailers Other types of distributor Leading competitors Given that it is not especially large, the Danish travel insurance market is comparatively fragmented with a long tail of competitors challenging the traditional market leaders including both large non-life insurers and specialist underwriters Forecasts Underlying foreign travel market The foreign travel market in Denmark is likely to continue growing between 2014 and Market for travel insurance and assistance resulting in steady growth in gross written premiums for travel insurance over the same period FINLAND Introduction Underlying foreign travel market Weakening economies in both Finland and destination countries saw foreign trips fall in 2013 and although trips per capita still expanded at a healthy rate from 2010 to with longer-haul journeys apparently increasing in popularity Market for travel insurance and assistance Rising trip numbers have allowed for limited growth in the Finnish travel insurance sector albeit a natural limit is imposed by the fact that this market is dominated by annual policies Distribution through travel trade, transportation and financial organisations Summary of organisations researched Provision rates Over 70% of the organisations researched are distributors of stand-alone travel cover Operating models A number of banks utilise their own captive underwriters for travel insurance Competitor share of partnerships Eurooppalainen is the dominant provider of travel insurance to travel trade distributors with eight other providers holding one to three partnerships each in this sphere In the weighted analysis, AIG Europe is ranked second in this distribution channel AIG Europe is also prominent as a provider of travel insurance used by airlines serving Finland In the financial sector, insurers have between one and three distribution arrangements each The weighted analysis broadly reflects the size of specific banks and insurance companies Travel insurance and assistance linked to payment cards and bank accounts Comprehensive travel policies are a common feature of premium credit cards in Finland Other distribution channels FINACCORD (08/2015) VI

7 Automotive clubs Fennia provides travel insurance for members of two automotive clubs Direct distribution by specialist travel insurers The leading specialists also promote travel insurance directly to consumers Online aggregators and brokers Vertaa.fi has reduced its roster of travel insurance partners in recent years Other online brands Retailers R-Kioski distributes single-trip travel cover sourced from Eurooppalainen Other types of distributor Several trade unions have organised travel insurance on behalf of their members Leading competitors Eurooppalainen remains the dominant competitor in the Finnish travel insurance market although there are plenty of other providers even if only three of these are likely to hold a market share in excess of 5% Forecasts Underlying foreign travel market The outlook for the foreign travel market is partly dependent upon the economic outlook Market for travel insurance and assistance Gentle growth is forecast for the travel insurance market between 2014 and FRANCE Introduction Underlying foreign travel market The number of overseas trips saw a gradual increase between 2010 and The share of trips to other EU countries within the total has risen in recent years Market for travel insurance and assistance The French market for stand-alone travel cover has grown in both volume and value terms with the former moving up partly as a result of a slight shift in favour of single-trip policies Several factors cause the average price of a travel insurance policy in France to be relatively low Distribution through travel trade, transportation and financial organisations Summary of organisations researched Provision rates Just over a half of more than 250 organisations researched are distributors of stand-alone travel cover Operating models A significant minority of travel trade entities utilise a broker with or instead of a single external underwriter Competitor share of partnerships Mondial Assistance claims over a fifth of travel trade distribution partnerships and is followed in this sphere by Europ Assistance Présence Assistance Tourisme has been independent again since the start of Numerous smaller competitors also distribute travel cover through the travel trade channel Viewed in weighted terms, Europ Assistance is likely to be the leading provider although airline partnerships make Mondial Assistance a leader in the transportation category followed by two providers with one major airline deal each Most insurance brands in France that sell travel cover underwrite their own policies although a few mutual insurers work with external providers AXA s strength in the category of financial organisations is due to its own direct sales capability Travel insurance and assistance linked to payment cards and bank accounts Around three quarters of credit card products in France carry at least some form of travel cover Other distribution channels Automotive clubs Automotive clubs are unlikely to be a particularly important channel for travel insurance distribution FINACCORD (08/2015) VII

8 Direct distribution by specialist travel insurers MAPFRE has been collaborating with L'Européenne for several years and is one of three specialists to sell directly in France Online aggregators and brokers The involvement of French aggregators in travel insurance remains limited and two major players operate in this field as agents rather than as genuine comparison sites The French market features a number of specialist travel insurance brokers Other online brands Two international intermediaries are also prominent in direct online distribution Retailers Retailers in France only sell travel insurance through their travel agency subsidiaries Other types of distributor Leading competitors Two providers are likely to account for a combined market share of at least 40% with all but two others almost certainly falling below the 10% threshold Forecasts Underlying foreign travel market France's foreign travel market is likely to move up gradually between 2014 and Market for travel insurance and assistance fuelling further growth in the associated insurance and assistance market GERMANY Introduction Underlying foreign travel market Overseas trips have recovered gradually from the trough of German consumers have shown a slight tendency towards longer-haul travel in recent years Market for travel insurance and assistance Although not growing quickly, the market value reached a record level in with annual policies accounting for over a third of the total A substantial proportion of the market volume is due to low-cost travel health insurance policies Distribution through travel trade, transportation and financial organisations Summary of organisations researched Provision rates Finaccord s research tracks 335 travel insurance schemes in Germany Operating models with the vast majority of these set up with a single external underwriter Competitor share of partnerships Three providers claim over three quarters of travel trade distribution partnerships with a large number of other providers taking the residual portion of the market The provider with the most partnerships is not necessarily the one with the most important partnerships Allianz Global Assistance and ERV have the highest number of deals in the transportation category although AIG and HanseMerkur are also prominent in the weighted analysis Public sector insurers hold the largest number of partnerships in the financial sector which hosts over 40 competing underwriters resulting in a fragmented supply structure in this segment Travel insurance and assistance linked to payment cards and bank accounts Comprehensive travel insurance policies are commonly packaged with premium banking products Other distribution channels Automotive clubs ADAC plus five other automotive clubs are active as distributors of travel insurance Direct distribution by specialist travel insurers A number of specialists promote insurance directly to consumers FINACCORD (08/2015) VIII

9 Online aggregators and brokers Comparison sites are likely to have become more important as distributors of travel cover albeit several act as tied agents rather than aggregators in this sphere Other online brands Other specialised intermediaries include both international competitors and indigenous ones Retailers Other types of distributor Travel cover can be bought from two airline frequent flyer programs and one mobile network operator Leading competitors In terms of their market share, Allianz Global Assistance and ERV are being pursued by HanseMerkur although other competitors are likely to account for around a half of the total market value Other competitors include large generalist non-life insurers selling directly to customers Forecasts Underlying foreign travel market Insurable trips are likely to have broken through the 90 million per year barrier by Market for travel insurance and assistance allowing for modest growth in gross written premiums from 2014 to IRELAND Introduction Underlying foreign travel market The underlying Irish foreign travel market stagnated between 2010 and and changed little in terms of preferred destinations Market for travel insurance and assistance The stand-alone travel insurance market has proved resilient in spite of falling trip numbers with annual policies accounting for well over half of the total Distribution through travel trade, transportation and financial organisations Summary of organisations researched Provision rates Over 80% of major potential distributors of travel cover in Ireland are actual distributors of the product Operating models One operating model type is dominant across most distribution categories Competitor share of partnerships Blue Insurance holds a substantial number of partnerships with travel trade entities working mainly (although not only) with MAPFRE Asistencia as underwriter Many other providers hold one or two relationships in the travel trade sector AXA and AIG are most prominent in the weighted analysis of partnerships Allianz Global Assistance is especially strong as a provider to airlines operating out of Ireland although it does not hold all of the most valuable relationships in this field The financial sector hosts a number of important distribution initiatives for travel insurance with ACE European Group and AIG claiming the most deals in this arena Vhi switched to a new provider of travel insurance in which has a significant bearing on the weighted analysis of partnerships Travel insurance and assistance linked to payment cards and bank accounts Specific forms of travel insurance are commonly packaged with Irish payment cards Other distribution channels Automotive clubs Direct distribution by specialist travel insurers Online aggregators and brokers Aggregators tend to work with a panel of providers rather than offering whole-of-market comparisons and many brokers act as tied agents in the specific context of travel insurance Other online brands FINACCORD (08/2015) IX

10 Other online brands include Columbus Direct, JustCover, Travel Insurance Direct and World Nomads Retailers Supervalu has begun selling travel insurance in partnership with ACE European Group Other types of distributor A number of professional associations and trade unions organise travel insurance for their members Leading competitors One group is likely to have won a dominant position for itself in the Irish travel insurance market with its six nearest rivals claiming smaller shares of between 6% and 14% and with the three after that all likely to hold market shares of less than 5% Forecasts Underlying foreign travel market Ireland s foreign travel market may see renewed growth between 2014 and Market for travel insurance and assistance which will help to support the related travel insurance market ITALY Introduction Underlying foreign travel market After a significant downturn in 2013, the number of overseas trips recovered slightly in The weak Italian economy has contributed to a fall in the share of long-haul trips Market for travel insurance and assistance The overall market for stand-alone travel cover in Italy is likely to have risen in with the share of annual policies tending to nudge up over time Several factors cause the average price of a travel insurance policy in Italy to be relatively low Distribution through travel trade, transportation and financial organisations Summary of organisations researched Provision rates Over 50% of the organisations investigated in the latest research distribute travel cover compared to under 45% in the previous survey Operating models Almost three quarters of distributor organisations employ a single external underwriter Competitor share of partnerships One provider claims more than a third of unweighted travel trade distribution partnerships and is also likely to be the leading provider when viewed in weighted terms Airline partnerships make Allianz Global Assistance a leader in the transportation category although its partnerships are outflanked by that of another competitor in a weighted analysis Most insurance brands in Italy that sell travel cover underwrite their own policies although opportunities exist for partnerships with other financial organisations most notably banks Travel insurance and assistance linked to payment cards and bank accounts Around three quarters of credit card products in Italy carry at least some form of travel cover Other distribution channels Automotive clubs ACI utilises an insurance company that it co-owns for travel insurance offered to members Direct distribution by specialist travel insurers Several specialist travel insurers distribute insurance direct to consumers Online aggregators and brokers Aggregators tend to act as agents or multi-tied agents when it comes to selling travel cover Other online brands Retailers Other types of distributor Members of the MilleMiglia frequent flyer program can earn points by purchasing travel insurance FINACCORD (08/2015) X

11 Leading competitors The leading two providers are likely to claim a half of Italy s stand-alone travel insurance market with other competitors taking much smaller shares through partnerships and direct sales Gruppo Filo diretto s AMI Assistance has a substantial roster of partners, largely in the travel trade as does UnipolSai, which also benefits from access to a vast agency distribution network Forecasts Underlying foreign travel market Italy's foreign travel market is likely to stage a partial recovery between 2014 and Market for travel insurance and assistance which will help the associated insurance and assistance to renewed growth NETHERLANDS Introduction Underlying foreign travel market Overseas trips peaked in 2012 before slipping back slightly in subsequent years Business trips continue to account for over 20% of total foreign trips Dutch consumers have shown an increasing preference for short-haul travel in recent years Market for travel insurance and assistance The stand-alone travel insurance market has been impacted by the decline in number of trips and by a significant rise in the share of annual policies Distribution through travel trade, transportation and financial organisations Summary of organisations researched Provision rates Over three quarters of organisations researched are distributors of stand-alone travel cover Operating models While travel trade distributors use external partners, many banks have captive underwriters Competitor share of partnerships Europeesche Verzekeringen claims more than half of travel trade distribution partnerships making it the channel leader in both unweighted and weighted terms Airline partnerships make Allianz Global Assistance a leader in the transportation category followed by five other providers Most insurance brands and banks in the Netherlands that sell travel cover underwrite their own policies although some sell through multiple brands The largest banks therefore deliver the largest potential market share Travel insurance and assistance linked to payment cards and bank accounts Around three quarters of credit card products in the Netherlands carry at least some form of travel cover Other distribution channels Automotive clubs Both main automotive clubs offer travel insurance underwritten by Unigarant Direct distribution by specialist travel insurers Allianz Global Assistance and Europeesche Verzekeringen promote insurance directly to consumers Online aggregators and brokers Aggregator involvement in travel insurance has grown in recent years and personal lines brokers also distribute travel cover Other online brands Two international intermediaries are prominent in direct online distribution Retailers Two major retail brands are distributors of travel insurance Other types of distributor as are several trade unions Leading competitors Three providers are each likely to hold shares of at least 10% of the travel insurance market with the ranking heavily influenced by the distribution channels used for buying travel cover FINACCORD (08/2015) XI

12 Forecasts Underlying foreign travel market The foreign travel market in the Netherlands is likely to recover between 2014 and Market for travel insurance and assistance although the associated insurance and assistance market is unlikely to grow much NORWAY Introduction Underlying foreign travel market Overseas trips per capita peaked at 1.85 in 2012 before slipping back in subsequent years although the split by destination of those trips varied little between 2010 and Market for travel insurance and assistance Norway s travel insurance market is both sizeable and quite fast-growing with average premiums per policy that are very high compared to the rest of Europe Distribution through travel trade, transportation and financial organisations Summary of organisations researched Provision rates Two thirds of the organisations researched are distributors of stand-alone travel cover Operating models A number of banks utilise captive or joint venture underwriters for travel insurance Competitor share of partnerships Two specialist providers claim over three quarters of travel trade distribution partnerships with the remainder splitting between four insurance companies In weighted terms, Europeiske Reiseforsikring is likely to derive the most business in this channel Four travel insurance providers hold partnerships with airlines serving Norwegian airports Stand-alone travel insurance provision is common among financial organisations in Norway with local savings banks providing a significant distribution channel In the weighted analysis, Gjensidige is just ahead of Tryg Forsikring and DNB Skadeforsikring Travel insurance and assistance linked to payment cards and bank accounts A fairly significant proportion of Norwegian payment cards feature some form of travel insurance Other distribution channels Automotive clubs All major automotive clubs in Norway have arrangements for stand-alone travel insurance Direct distribution by specialist travel insurers Several specialist underwriters promote travel insurance directly to consumers Online aggregators and brokers A state-sponsored financial services aggregator includes travel insurance comparisons Other online brands Retailers Europeiske Reiseforsikring entered into a travel insurance partnership with Coop at the end of Other types of distributor SpareBank 1 Forsikring is the insurer used for travel cover by the LOfavør benefit program Leading competitors Europeiske Reiseforsikring and Gouda Reiseforsikring are the clear market leaders and there is unlikely to be much between them in terms of their market share There are many other competitors but only two are likely to have a market share of 10% or more Forecasts Underlying foreign travel market The foreign travel market in Norway will probably resume its growth between 2014 and Market for travel insurance and assistance driving an advance in gross written premiums for travel insurance over the same period POLAND FINACCORD (08/2015) XII

13 Introduction Underlying foreign travel market Foreign travel out of Poland has surged since the trough experienced in with a growing proportion of trips to more far-flung destinations Market for travel insurance and assistance The value (and volume) of the Polish travel insurance market reached a new high point in with annual policies steadily gaining in popularity Distribution through travel trade, transportation and financial organisations Summary of organisations researched Provision rates Almost 70% of the organisations researched are distributors of stand-alone travel cover Operating models A significant number of Polish distributors use more than one insurance partner Competitor share of partnerships Three insurers claim over a half of total travel trade relationships although six others have more than one partnership in this field SIGNAL IDUNA leads the unweighted count but ERV dominates the weighted analysis Three providers are particularly active in distributing travel cover through transportation organisations although another company enters the top three in the weighted analysis Blue Finance intermediates travel insurance for a number of Polish banks while most insurers have between one and three deals in this sector PZU s size as an insurer in its own right plus a key banking deals make it prominent in weighted terms Travel insurance and assistance linked to payment cards and bank accounts Comprehensive travel cover is the most common type of travel insurance bundled with banking products Other distribution channels Automotive clubs InterRisk is the provider of travel cover to Poland s main automotive club Direct distribution by specialist travel insurers Several specialists sell policies directly online Online aggregators and brokers A significant number of comparison sites are active as distributors of travel insurance Other online brands The Polish market features a variety of other online brands distributing on a direct or semi-direct basis Retailers Other types of distributor Leading competitors ERV and ERGO Hestia combined are likely to be clear leaders in the travel insurance market although three other insurers may have market shares of more than 10% and more than 20 are involved in total Forecasts Underlying foreign travel market Business trips overseas will continue to outpace leisure trips out of Poland Market for travel insurance and assistance The outlook for Poland s travel insurance sector is comparatively favourable PORTUGAL Introduction Underlying foreign travel market Outbound travel from Portugal edged up between 2010 and although the trends for business and leisure travel have been markedly different and with destinations outside the EU and North America apparently increasing in popularity Market for travel insurance and assistance FINACCORD (08/2015) XIII

14 The value of the Portuguese travel insurance market remains small but is growing nonetheless with business travel policies accounting for a comparatively high proportion of the total Distribution through travel trade, transportation and financial organisations Summary of organisations researched Provision rates Distribution of stand-alone travel cover is concentrated in five segments Operating models A number of banks utilise their own captive underwriters for travel insurance Competitor share of partnerships Victoria Seguros provides travel insurance for over half of travel trade entities researched with 14 other providers holding one to three partnerships each in this sphere The market leader expands its share still further in the weighted analysis Allianz Global Assistance dominates sales of travel cover via airlines flying in and out of Portugal In the financial sector, insurers have between one and three distribution arrangements each with the weighted analysis pointing to Fidelidade as the likely leader in this category Travel insurance and assistance linked to payment cards and bank accounts Travel cover bundled with banking products in Portugal is rarely comprehensive Other distribution channels Automotive clubs An underwriter based in Spain serves Portugal s main automotive club Direct distribution by specialist travel insurers Three specialists distribute online and another only by phone Online aggregators and brokers Online aggregation has not developed in Portugal, although the broker channel is important as a consequence of the relatively high proportion of business travel policies within the total Other online brands Retailers Other types of distributor The Fundação INATEL operates its own travel firm Leading competitors The importance of business travel policies is likely to make AIG the market leader in Portugal although its nearest rivals focus more closely on the leisure travel insurance market and others combine revenue from both sources Forecasts Underlying foreign travel market Better growth is forecast for the Portuguese foreign travel market in the years up to Market for travel insurance and assistance which will help the value of the related insurance market to move up further ROMANIA Introduction Underlying foreign travel market Foreign trips out of Romania hit a five-year high in and may understate the potential for travel insurance given one important caveat Virtually all overseas trips are to other EU countries Market for travel insurance and assistance Romania s travel insurance market is relatively small but growing quite rapidly nonetheless Most policies bought are not comprehensive as they cover specific travel-related risks Distribution through travel trade, transportation and financial organisations Summary of organisations researched Provision rates Stand-alone travel cover is available from around three quarters of organisations researched FINACCORD (08/2015) XIV

15 Operating models A significant number of Romanian distributors use more than one insurance partner Competitor share of partnerships One insurer claims an unweighted share of travel trade partnerships of close to a half while most competitors have only one or two partnerships in this category In the weighted analysis, the leading two providers switch positions AIG is prominent as a provider of travel cover sold via airlines and especially so in the weighted analysis of partnerships In the financial sector, distribution partnerships are spread quite thinly across multiple providers with Omniasig, Astra and Groupama most prominent in the weighted analysis Travel insurance and assistance linked to payment cards and bank accounts Comprehensive travel cover is more often than not available with premium banking products Other distribution channels Automotive clubs Direct distribution by specialist travel insurers Online aggregators and brokers Several online aggregators and brokers act as distributors of travel insurance in Romania Other online brands Three major insurers operate separate online brands for direct sales Retailers Three retail brands have arrangements for selling travel insurance to their customers Other types of distributor as do two mobile network operators Leading competitors Three providers are competing closely for leadership of the Romanian travel insurance sector with Generali the most likely to have edged ahead of its two main rivals and with most other competitors likely to hold a share of no more than 6% each Forecasts Underlying foreign travel market The number of business trips is predicted to continue outpacing the number of holiday trips Market for travel insurance and assistance The value of Romania s travel insurance market ought to increase in both nominal and real terms RUSSIA Introduction Underlying foreign travel market Strong growth in foreign travel from 2010 to 2013 came to an abrupt end in which has particularly impacted travel to European destinations outside of the EU Market for travel insurance and assistance Unsurprisingly, growth in Russia s travel insurance market slowed in although policies sold purely for domestic trips have helped to compensate Average policy prices in Russia are low for a number of reasons Distribution through travel trade, transportation and financial organisations Summary of organisations researched Provision rates Approaching 80% of the organisations researched are distributors of stand-alone travel cover Operating models Most schemes are run in conjunction with a single, external underwriter Competitor share of partnerships Eight insurers partner with at least five travel trade organisations each although there are at least 35 providers in total in this category Ingosstrakh leads the weighted analysis, ahead of VSK, ERV and AlfaStrakhovanie FINACCORD (08/2015) XV

16 AlfaStrakhovanie benefits from its distribution relationships with numerous airlines although a large number of other providers again operate in this category Deals with Aeroflot, S7 Airlines and Transaero Airlines prove particularly important in the weighted analysis Among financial sector distributors, AlfaStrakhovanie again leads by number of partnerships ahead of Allianz, RESO-Garantia and VSK with the supply structure especially fragmented in this field Rosgosstrakh edges ahead of AlfaStrakhovanie in the weighted analysis for this category which is mainly due to its prominence as a direct distributor in its own right Travel insurance and assistance linked to payment cards and bank accounts Assistance is bundled more regularly with banking products than other types of travel cover Other distribution channels Automotive clubs Liberty Strakhovanie has established a distribution relationship with the RAMK Direct distribution by specialist travel insurers Online aggregators and brokers A number of online aggregators have commenced activity in travel insurance in recent years Other online brands Some insurers have begun to use dedicated travel insurance brands to sell policies online in Russia Retailers At least two major retail brands act as distributors of travel insurance Other types of distributor with two mobile network operators also involved in this market Leading competitors Ingosstrakh and AlfaStrakhovanie are likely to command the highest market shares with a clear leader over VSK and ERV, ranked third and fourth respectively although numerous other players could hold over a half of the total market between them Forecasts Underlying foreign travel market Appetite for foreign travel among Russian customers is likely to continue falling up to Market for travel insurance and assistance albeit increasing policy take-up rates and domestic trips will bolster insurance market growth SPAIN Introduction Underlying foreign travel market After an apparent downturn in 2013, the number of overseas trips recovered in Increasing availability of low-cost flights has caused Spanish travellers to favour European destinations Market for travel insurance and assistance The overall market for stand-alone travel cover in Spain is unlikely to have grown in recent years although the share of annual policies is believed to have nudged up slightly Several factors cause the average price of a travel insurance policy in Spain to be relatively low Distribution through travel trade, transportation and financial organisations Summary of organisations researched Provision rates Well over a half of organisations researched are distributors of stand-alone travel cover Operating models A significant minority of travel trade entities utilise a broker with or instead of a single external underwriter Competitor share of partnerships Four providers claim more than half of travel trade distribution partnerships in a market populated by both direct underwriters and specialist intermediaries InterMundial is comfortably the largest intermediary by unweighted share of partnerships Viewed in weighted terms, ERV is likely to be the leading provider to travel trade entities although airline partnerships make Allianz Global Assistance a leader in the transportation category FINACCORD (08/2015) XVI

17 followed by two providers with one major airline deal each Most insurance brands in Spain that sell travel cover underwrite their own policies although banks tend to work with external providers MAPFRE s strength in the category of financial organisations is due to its own direct sales capability Travel insurance and assistance linked to payment cards and bank accounts Around three quarters of credit card products in Spain carry at least some form of travel cover Other distribution channels Automotive clubs Both main automotive clubs offer travel insurance underwritten by captive entities Direct distribution by specialist travel insurers Specialist travel insurers compete with the major brands by providing insurance direct to consumers Online aggregators and brokers Aggregator involvement in travel insurance has grown in recent years with aseguratuviaje.com, Rastreator.com and Seguros.es all active in this field although other comparison sites have yet to enter the fray Other online brands Two international intermediaries are also prominent in direct online distribution Retailers Supermarket chain Eroski distributes travel insurance sourced from Aon with other retail brands indirectly involved through travel agency subsidiaries Other types of distributor Members of Iberia's frequent flyer program can earn points by purchasing travel insurance Leading competitors Two providers are close rivals for leadership in Spain s travel insurance market with two others also likely to hold a market share at close to or just over 10% Insurers outside of the top ten claim a residual combined market share of between 11% and 15% Forecasts Underlying foreign travel market Spain's foreign travel market is likely to stage a strong recovery between 2014 and Market for travel insurance and assistance fuelling growth in the associated insurance and assistance market SWEDEN Introduction Underlying foreign travel market Sweden experienced consistent growth in overseas trips between 2010 and with a likely trend for shorter but more frequent journeys during this period Market for travel insurance and assistance The value of the Swedish stand-alone travel insurance market has displayed steady growth although it is limited by the practice of bundling travel cover with household insurance Distribution through travel trade, transportation and financial organisations Summary of organisations researched Provision rates Over a half of the organisations researched are distributors of stand-alone travel cover Operating models Most distribution relationships are based around use of a single, external underwriter Competitor share of partnerships Three providers claim over 90% of travel trade distribution partnerships with three other providers holding only one or two partnerships each Concentration in this distribution segment appears to have increased in recent years When viewed in weighted terms, Europeiska ERV and Gouda Reseförsäkring are close competitors Six providers claim either one or two partnerships in the transportation category although one becomes dominant in the weighted analysis FINACCORD (08/2015) XVII

18 Comparatively few financial organisations in Sweden offer stand-alone travel insurance The only underwriter to offer stand-alone travel cover gains a large weighted share Travel insurance and assistance linked to payment cards and bank accounts A significant proportion of Swedish payment cards feature some form of travel insurance Other distribution channels Automotive clubs Direct distribution by specialist travel insurers The leading specialists both promote travel insurance directly to consumers Online aggregators and brokers While comparison sites exist, they lack the ability to transact online Other online brands Relatively few other travel insurance brands are visible online Retailers Other types of distributor Leading competitors Two specialists are likely to account for up to around two thirds of the total market value between them with two others some way behind at between 10% and 16% of the market total Forecasts Underlying foreign travel market The Swedish foreign travel market in Sweden will expand further between 2014 and Market for travel insurance and assistance resulting in growth in gross written premiums for travel insurance over the same period SWITZERLAND Introduction Underlying foreign travel market The number of foreign trips out of Switzerland has advanced rapidly in recent years buoyed by the strength of the Swiss Franc against the Euro Market for travel insurance and assistance With a rising number of trips, the stand-alone travel insurance market has also grown Annual policies are especially important in the Swiss market Distribution through travel trade, transportation and financial organisations Summary of organisations researched Provision rates Few Swiss banks sell travel insurance as a stand-alone product Operating models The vast majority of arrangements are organised through a single, external underwriter Competitor share of partnerships Among travel trade entities, Allianz Global Assistance is leader in both unweighted and weighted terms comfortably ahead of EUROPÄISCHE and seven other providers with fewer relationships Two providers dominate in the transportation category due mainly to key relationships with airlines Most insurance brands underwrite their own travel insurance policies making the largest insurers most prominent in the weighted analysis Travel insurance and assistance linked to payment cards and bank accounts Forms of travel insurance are commonly packaged with Swiss payment cards Other distribution channels Automotive clubs Touring Club Suisse is a very significant provider of travel insurance policies Direct distribution by specialist travel insurers Several specialists, including a few health insurers, distribute directly to consumers Online aggregators and brokers Aggregator involvement in travel insurance remains fairly limited in Switzerland FINACCORD (08/2015) XVIII

19 Other online brands Other online brands include Sekur TravelCard and World Nomads Retailers Several major retail brands operate their own travel agencies Other types of distributor AXA Winterthur and EUROPÄISCHE both hold partnerships with alternative distributors Leading competitors Three travel insurance underwriters are likely to claim at least 60% of the total market value Having bought Nationale Suisse, the owner of EUROPÄISCHE, Helvetia is now a significant competitor By likely market share, AXA Winterthur and Zurich are ranked fourth and fifth, respectively Forecasts Underlying foreign travel market Both holiday and business trips out of Switzerland are likely to grow further between 2014 and Market for travel insurance and assistance facilitating gentle growth in the value of the travel insurance market over the same period TURKEY Introduction Underlying foreign travel market Foreign travel out of Turkey has recovered strongly from the trough experienced in with non-european destinations taking up a particularly high proportion of the total Market for travel insurance and assistance Rising trip numbers have driven growth in the Turkish travel insurance sector with travel health insurance accounting for a significant proportion of this market Distribution through travel trade, transportation and financial organisations Summary of organisations researched Provision rates Well over 80% of the organisations researched are distributors of stand-alone travel cover Operating models A significant number of Turkish distributors use more than one insurance partner Competitor share of partnerships Insurance is commonly sourced from Turins Sigorta (itself owned by TÜRSAB) although several major insurers have a significant number of travel trade partners and a very wide range of companies is involved in this distribution channel On a weighted analysis, three insurers hold over three quarters of travel trade partnerships AIG is prominent among the many providers of travel insurance for transportation companies in Turkey especially so in the weighted analysis of partnerships Turkish banks commonly work with more than one travel insurer with a very large number of providers involved in the financial sector AXA Sigorta is just ahead of Anadolu Sigorta as channel leader in the weighted analysis Travel insurance and assistance linked to payment cards and bank accounts Other distribution channels Automotive clubs Direct distribution by specialist travel insurers Online aggregators and brokers Brokers constitute a significant distribution channel for travel insurance in Turkey Other online brands Retailers Other types of distributor Providers of visa application services are a minor additional channel for travel insurance Leading competitors AIG is likely to be the leader in Turkey s travel insurance sector but the market is a fragmented one FINACCORD (08/2015) XIX

20 As many as five competitors claim up to 10% of the market each Underwriters outside of the top ten are likely to hold between 19% and 26% of the total market Forecasts Underlying foreign travel market Overseas trips in 2018 are predicted to be more than 2 million higher than they were in Market for travel insurance and assistance which should help to propel Turkey s travel insurance market further forwards UK Introduction Underlying foreign travel market Holiday trips have been growing at more than three times the speed of business trips The breakdown of foreign trips by destination has varied little in recent years Market for travel insurance and assistance Following a low point reached in 2011, the UK s travel insurance market has begun growing again with annual policies accounting for over a third of the total in force Distribution through travel trade, transportation and financial organisations Summary of organisations researched Provision rates Provision rates among travel trade entities have slipped back since Finaccord s previous research Operating models Specialised travel insurance intermediaries play an important role in the UK travel insurance market albeit they usually work with a single, external underwriter Competitor share of partnerships On an outright basis, Allianz Global Assistance holds the most partnerships with travel trade entities Campbell Irvine and Rock Insurance Services are the most visible specialised intermediaries Viewed in weighted terms, AXA is comfortably the leading provider in this distribution segment followed by Thomas Cook s White Horse Insurance Ireland subsidiary Both AIG and Allianz Global Assistance hold a number of significant airline partnerships Other competitors are limited to one deal each albeit some of these are significant ones A diverse range of firms can be found working with banks and insurance brands in the UK most of which are named as providers only once or twice Aviva holds the highest weighted share in this category, followed by Direct Line Group s UK Insurance Travel insurance and assistance linked to payment cards and bank accounts Packaged accounts constitute an important distribution channel for comprehensive travel cover with almost all that are actively marketed incorporating it according to the latest research Other distribution channels Automotive clubs The AA revamped its travel insurance proposition at the beginning of Direct distribution by specialist travel insurers A number of specialists promote insurance directly to consumers Online aggregators and brokers Aggregator involvement in travel insurance is extensive in the UK with Google having entered the fray through Google Compare Other online brands Numerous other intermediaries are also engaged in direct online distribution Retailers Major retail brands often offer travel insurance although some weaker ones have exited the market Other types of distributor Distribution initiatives for travel insurance are visible across many alternative channels Leading competitors Three groups are likely to claim around a half of the total market The position of one provider has received a large boost through its deal with the Post Office FINACCORD (08/2015) XX