TABLE OF CONTENTS 0.0 EXECUTIVE SUMMARY... 1 Trends in outbound foreign travel have been positive in recent years in most European countries... 2...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... 7 1.0 INTRODUCTION... 11 What is this report about?... 11 Rationale... 11 This report builds upon Finaccord's previous ground-breaking studies of this topic... 11 Methodology... 12 Primary research... 12 The survey covers 3,630 travel trade, transportation and financial organisations... 12 Market data... 14 External sources... 14 Travel insurance and assistance: how it all fits together... 16 The term 'travel insurance' can refer to protection from a heterogeneous range of risks... 16...and assistance companies play a fundamental role in the European travel insurance industry... 16 Definitions... 17 Terms and abbreviations... 17 Types of packaged travel insurance and assistance... 17 Operating models... 18 Weighted shares... 18 Currencies, exchange rates and inflation... 19 PartnerBASE... 19 Finaccord... 19 2.0 EUROPEAN OVERVIEW... 21 Introduction... 21 Underlying foreign travel markets... 21 Number of trips... 21 The number of foreign trips per annum has increased in most European countries...... 21 with Poland, Romania and Switzerland experiencing the strongest growth... 21 On a per capita basis, foreign travel is most common in the Nordic countries and Switzerland... 23 There is a marked correlation between citizens' wealth and their outbound travel habits... 25 Purpose of trips... 27 In Poland, Portugal and Turkey, business travel is particularly important within the total... 27 Annual trends in business travel tend to be more volatile than those for holiday travel... 28 Destination of trips... 32 Over 70% of foreign travel in Europe is to destinations within the EU... 32 with travel outside of Europe most common among residents of Russia and Turkey... 32 FINACCORD (08/2015) I
Markets for travel insurance and assistance... 35 Policy numbers and value of premiums... 35 In real terms, the value of Europe s travel insurance market has been rising gently... 35 The UK is the largest market by a wide margin, more than twice the size of second-ranked Germany... 35 The Dutch and Norwegian markets for travel insurance are larger than might be expected... 36 while those of France and Sweden are comparatively small... 36 Policy volumes have been increasing most significantly in Poland, Romania and Turkey... 37 The travel insurance markets of both the Czech Republic and Italy have fallen back in recent years... 38 Across Europe as a whole, annual policies account for just over a third of total policies... 41 Market metrics... 43 Across the 20 countries, premiums per capita vary from around EUR 0.45 to EUR 71.50... 43 with the most expensive travel policies sold in Norway and Finland... 47 Distribution through travel trade, transportation and financial organisations... 49 Provision rates... 49 Travel agents / tour operators: though still high, provision rates have declined a little since 2012... 49 Online travel specialists: the provision rate remains lower than through traditional travel organisations... 50 Airlines: close to four in five airlines researched have an arrangement for distributing travel cover... 52 Ferry operators: in terms of selling travel policies, ferry companies are much less active than airlines... 53 Railway operators: most countries researched feature only one national railway operator... 55 Insurance brands: in most countries, more than a half of major insurers sell stand-alone travel cover... 56 Banking organisations: Turkish banks display the highest provision rate for stand-alone policies... 57 Specialised card providers and lenders: these are less likely than regular banks to offer stand-alone cover... 59 Operating models... 60 The majority of travel insurance schemes involve a single external underwriter... 60 although the use of alternative models is widespread in certain markets... 60 Competitive landscape... 62 On an unweighted basis, partnerships with distributors are most concentrated in Sweden and Austria... 62 and least so in Russia and the UK... 63 Weighting partnerships reveals a more fragmented European market overall... 65 Subsidiaries of Allianz and Munich Re hold the highest number of distribution partnerships... 68 although the top eight groups account for less than a half of all relationships identified... 69 The potential exists to set up multi-country deals with some international travel groups... 69 Leading competitors... 70 Allianz and Munich Re also lead the way by market share of gross written premiums... 70 in a diverse market including many other international and national competitors... 72 with groups outside of the top 15 accounting for between 28% and 38% of the total market value... 72 Forecasts... 73 Underlying foreign travel markets... 73 Europe s outbound travel sector is expected to grow at a modest rate between 2014 and 2018... 73 although some individual markets will grow significantly... 73 Markets for travel insurance and assistance... 75 This dynamic will feed through to further progress in the travel insurance and assistance market... 75 with its value across 20 countries likely to exceed EUR 4.5 billion by 2018... 77 At the local level, the strongest growth (nominal and real) is expected to occur in Turkey... 77 3.0 AUSTRIA... 80 Introduction... 80 Underlying foreign travel market... 80 Business trips have tended to increase more quickly than holiday trips... 80 Accession of Croatia to the EU in 2013 has caused a surge in the share of trips to EU countries... 82 Market for travel insurance and assistance... 83 The stand-alone travel insurance market has grown faster than the underlying travel market...... 83 largely due to a probable rise in the share of annual policies... 84 Distribution through travel trade, transportation and financial organisations... 85 FINACCORD (08/2015) II
Summary of organisations researched... 85 Provision rates... 86 Almost two thirds of organisations researched are distributors of stand-alone travel cover... 86 Operating models... 87 A majority of travel insurance schemes are organised through a single, external underwriter... 87 Competitor share of partnerships... 89 Europäische Reiseversicherung claims over a third of travel trade distribution partnerships...... 89 in a sector that appears relatively concentrated... 89... making it the channel leader in both unweighted and weighted terms... 90 Allianz Global Assistance is the leader by number of partnerships in the transportation category...... 92 although two competitors may hold a couple of the most important relationships... 92 Europäische Reiseversicherung and UNIQA are particularly active in partnering with banks... 94 with other insurers selling policies both directly and through partnerships with financial institutions... 94 UNIQA and Wiener Städtische attain greater prominence in the weighted analysis for this category... 94 Travel insurance and assistance linked to payment cards and bank accounts... 96 Comprehensive travel insurance policies are very commonly packaged with Austrian payment cards... 96 Other distribution channels... 98 Automotive clubs... 98 Both of Austria s main automotive clubs offer travel insurance to members... 98 Direct distribution by specialist travel insurers... 98 A number of specialist underwriters promote insurance directly to consumers... 98 Online aggregators and brokers... 98 Aggregator involvement in travel insurance is likely to have grown in recent years... 98 Travel health cover from a variety of underwriters can be bought from Care Concept... 98 Other online brands... 99 Other online brands include both international specialists and ones restricted to Austria and Germany... 99 Retailers... 99 Major retailers distribute travel insurance through captive travel agencies rather than directly... 99 Other types of distributor... 99 Leading competitors... 99 The eight leading travel insurers are likely to control between 95% and 99% of the market... 100 and the top two for over 60%, even using the most conservative assumptions... 100 AIG may be ranked as high as fifth in spite of the fact that it benefits from just one partnership... 100 Germany-based competitors include ERV, HanseMerkur and VHV (via VAV)... 100 Forecasts... 102 Underlying foreign travel market... 102 Austria s foreign travel market is likely to continue to expand between 2014 and 2018... 102 Market for travel insurance and assistance... 104 causing the associated travel insurance sector to also move up in value... 104 4.0 BELGIUM... 106 Introduction... 106 Underlying foreign travel market... 106 The number of business trips has been growing at almost four times the rate of the number of holiday trips... 106 Belgian consumers have shown a slight tendency towards longer-haul travel in recent years... 108 Market for travel insurance and assistance... 109 The value of the Belgian travel insurance market grew consistently between 2010 and 2014... 109 with annual policies accounting for an increasingly significant proportion of the total... 109 Distribution through travel trade, transportation and financial organisations... 111 Summary of organisations researched... 111 Provision rates... 112 Two thirds of the organisations researched are distributors of stand-alone travel cover... 112 FINACCORD (08/2015) III
Operating models... 113 Most distribution relationships are based around use of a single, external underwriter... 113 Competitor share of partnerships... 116 Two providers claim over a half of travel trade distribution partnerships...... 116 with two others also fairly significant as providers in this field... 116 In weighted terms, Allianz Global Assistance is likely to derive the most business in this channel... 116 Allianz Global Assistance has the highest number of relationships in the transportation category...... 118 although it is overtaken by two other providers in the weighted analysis of partnerships... 118 Among financial organisations, Europ Assistance and Inter Partner Assistance hold the most deals... 120 with four other providers named twice each... 120 and another dozen once each in a fairly fragmented sector... 120 AG Insurance, Ethias and KBC Assurances all become more visible in the weighted analysis... 120 Travel insurance and assistance linked to payment cards and bank accounts... 122 A significant proportion of Belgian payment cards feature some form of travel insurance... 122 Other distribution channels... 124 Automotive clubs... 124 All four automotive clubs have a travel insurance proposition for their members... 124 Direct distribution by specialist travel insurers... 124 Several specialists promote travel insurance directly to consumers... 124 Online aggregators and brokers... 124 Several aggregators have begun intermediating travel cover... 124 and brokers also constitute a viable distribution channel... 124 Other online brands... 125 Specialist online brands include Assudis, Protections Travel Insurance and World Nomads... 125 Retailers... 125 One major retailer offers travel insurance directly to its customers... 125 Other types of distributor... 125 Leading competitors... 125 Two competitors may account for almost a half of the total market value between them... 125 although as much as 25% may be dealt with by providers outside of the top six... 127 Having bought the travel insurance portfolio of De Europese, MAPFRE is now a significant competitor... 127 as is an insurer owned by Touring Club Belgium... 128 Forecasts... 128 Underlying foreign travel market... 128 The foreign travel market in Belgium is likely to continue growing between 2014 and 2018... 128 Market for travel insurance and assistance... 130 resulting in modest growth in gross written premiums for travel insurance over the same period... 130 5.0 CZECH REPUBLIC... 132 Introduction... 132 Underlying foreign travel market... 132 Outbound travel from the Czech Republic hit a new low point in 2014... 132 with business travel in particular having declined very significantly... 132 Trips to other EU countries account for over 85% of total trips... 134 Market for travel insurance and assistance... 135 Falling trips abroad have produced a corresponding decline in the travel insurance market... 135 Distribution through travel trade, transportation and financial organisations... 137 Summary of organisations researched... 137 Provision rates... 138 The vast majority of organisations that could offer travel cover actually do so in practice... 138 Operating models... 139 A number of banks utilise their own captive underwriters for travel insurance... 139 FINACCORD (08/2015) IV
Competitor share of partnerships... 142 One provider is the source of travel cover for over a third of travel trade entities researched... 142 with four other firms each holding between five and seven partnerships... 142 and the remaining seven between one and three... 142 ERV Evropská Pojišťovna is dominant in the weighted analysis of travel trade partnerships... 142 Six insurers benefit from at least one qualifying airline partnership... 144 with AIG Europe the incumbent provider to Czech Airlines... 144 In the financial sector, insurers hold between one and four distribution arrangements each... 146 The weighted analysis broadly reflects the size of specific banks and insurance companies... 146 Travel insurance and assistance linked to payment cards and bank accounts... 148 Comprehensive travel cover is a common feature of credit cards in the Czech Republic... 148 Other distribution channels... 150 Automotive clubs... 150 ÚAMK has begun marketing travel insurance to its members... 150 Direct distribution by specialist travel insurers... 150 Online aggregators and brokers... 150 In spite of its limited size, the Czech Republic hosts a number of insurance comparison sites... 150 Other online brands... 150 Retailers... 150 One retail brand has branched out into selling travel insurance... 150 Other types of distributor... 150 as has one mobile network operator... 150 Leading competitors... 151 Four competitors are likely to hold a market share in excess of 10%... 151 with the leading pair more or less equal by this measure... 151 In total, there are more than 20 entities underwriting travel cover in the Czech Republic... 151 Forecasts... 153 Underlying foreign travel market... 153 A more favourable economic outlook should bring about a resumption of growth in foreign travel... 153 Market for travel insurance and assistance... 155 which will bring about an improving picture in the travel insurance market... 155 6.0 DENMARK... 157 Introduction... 157 Underlying foreign travel market... 157 Outbound travel from Denmark has recovered strongly from a drop in 2012... 157 with leisure trips slightly outpacing business trips... 157 Danish consumers have increasingly headed for nearby EU destinations or to North America... 159 Market for travel insurance and assistance... 160 The value of the Danish travel insurance market grew between 2010 and 2014... 160 with a marked shift towards annual policies... 160 Danish citizens can no longer use their sundhedskort to cover medical costs in EEA countries... 160 Distribution through travel trade, transportation and financial organisations... 162 Summary of organisations researched... 162 Provision rates... 163 Over half of the organisations researched are distributors of stand-alone travel cover... 163 Operating models... 164 Organisations in Denmark generally partner exclusively with a single underwriter... 164 Competitor share of partnerships... 167 Gouda Rejseforsikring holds over a half of travel trade distribution partnerships...... 167 with the remainder divided among only four other insurers... 167 Two companies are likely to control around 85% of business passing through this channel... 167 FINACCORD (08/2015) V
Seven providers have between one and three partnerships in the transportation category... 169 although one gaining in particular through its partnership with Scandinavian Airlines... 169 Most Danish insurance brands underwrite their own travel cover... 171 meaning that partnerships with financial institutions are mainly with banks and card issuers... 171 In some cases, buying travel cover is only open to customers with a household insurance policy... 171 Travel insurance and assistance linked to payment cards and bank accounts... 173 Comprehensive travel cover is a very common feature of premium payment cards in Denmark... 173 Other distribution channels... 175 Automotive clubs... 175 Direct distribution by specialist travel insurers... 175 Several specialists promote travel insurance directly to consumers... 175 Online aggregators and brokers... 175 Aggregators are an increasingly important feature of the Danish market... 175 Other online brands... 176 Managing general agents such as Dansk Rejseforsikring and safeaway are increasingly prominent... 176 Retailers... 176 Other types of distributor... 176 Leading competitors... 177 Given that it is not especially large, the Danish travel insurance market is comparatively fragmented... 177 with a long tail of competitors challenging the traditional market leaders... 177 including both large non-life insurers and specialist underwriters... 179 Forecasts... 180 Underlying foreign travel market... 180 The foreign travel market in Denmark is likely to continue growing between 2014 and 2018... 180 Market for travel insurance and assistance... 181 resulting in steady growth in gross written premiums for travel insurance over the same period... 181 7.0 FINLAND... 183 Introduction... 183 Underlying foreign travel market... 183 Weakening economies in both Finland and destination countries saw foreign trips fall in 2013 and 2014... 183 although trips per capita still expanded at a healthy rate from 2010 to 2014... 183 with longer-haul journeys apparently increasing in popularity... 185 Market for travel insurance and assistance... 186 Rising trip numbers have allowed for limited growth in the Finnish travel insurance sector... 186 albeit a natural limit is imposed by the fact that this market is dominated by annual policies... 186 Distribution through travel trade, transportation and financial organisations... 188 Summary of organisations researched... 188 Provision rates... 189 Over 70% of the organisations researched are distributors of stand-alone travel cover... 189 Operating models... 190 A number of banks utilise their own captive underwriters for travel insurance... 190 Competitor share of partnerships... 193 Eurooppalainen is the dominant provider of travel insurance to travel trade distributors... 193 with eight other providers holding one to three partnerships each in this sphere... 193 In the weighted analysis, AIG Europe is ranked second in this distribution channel... 193 AIG Europe is also prominent as a provider of travel insurance used by airlines serving Finland... 195 In the financial sector, insurers have between one and three distribution arrangements each... 197 The weighted analysis broadly reflects the size of specific banks and insurance companies... 197 Travel insurance and assistance linked to payment cards and bank accounts... 199 Comprehensive travel policies are a common feature of premium credit cards in Finland... 199 Other distribution channels... 201 FINACCORD (08/2015) VI
Automotive clubs... 201 Fennia provides travel insurance for members of two automotive clubs... 201 Direct distribution by specialist travel insurers... 201 The leading specialists also promote travel insurance directly to consumers... 201 Online aggregators and brokers... 201 Vertaa.fi has reduced its roster of travel insurance partners in recent years... 201 Other online brands... 201 Retailers... 201 R-Kioski distributes single-trip travel cover sourced from Eurooppalainen... 201 Other types of distributor... 201 Several trade unions have organised travel insurance on behalf of their members... 201 Leading competitors... 202 Eurooppalainen remains the dominant competitor in the Finnish travel insurance market... 202 although there are plenty of other providers... 202 even if only three of these are likely to hold a market share in excess of 5%... 204 Forecasts... 204 Underlying foreign travel market... 204 The outlook for the foreign travel market is partly dependent upon the economic outlook... 204 Market for travel insurance and assistance... 206 Gentle growth is forecast for the travel insurance market between 2014 and 2018... 206 8.0 FRANCE... 208 Introduction... 208 Underlying foreign travel market... 208 The number of overseas trips saw a gradual increase between 2010 and 2014... 208 The share of trips to other EU countries within the total has risen in recent years... 210 Market for travel insurance and assistance... 211 The French market for stand-alone travel cover has grown in both volume and value terms...... 211 with the former moving up partly as a result of a slight shift in favour of single-trip policies... 212 Several factors cause the average price of a travel insurance policy in France to be relatively low... 212 Distribution through travel trade, transportation and financial organisations... 214 Summary of organisations researched... 214 Provision rates... 215 Just over a half of more than 250 organisations researched are distributors of stand-alone travel cover... 215 Operating models... 216 A significant minority of travel trade entities utilise a broker with or instead of a single external underwriter... 216 Competitor share of partnerships... 218 Mondial Assistance claims over a fifth of travel trade distribution partnerships...... 218 and is followed in this sphere by Europ Assistance... 218 Présence Assistance Tourisme has been independent again since the start of 2013... 219 Numerous smaller competitors also distribute travel cover through the travel trade channel... 219 Viewed in weighted terms, Europ Assistance is likely to be the leading provider...... 219... although airline partnerships make Mondial Assistance a leader in the transportation category...... 221 followed by two providers with one major airline deal each... 221 Most insurance brands in France that sell travel cover underwrite their own policies...... 223... although a few mutual insurers work with external providers... 223 AXA s strength in the category of financial organisations is due to its own direct sales capability... 223 Travel insurance and assistance linked to payment cards and bank accounts... 225 Around three quarters of credit card products in France carry at least some form of travel cover... 225 Other distribution channels... 227 Automotive clubs... 227 Automotive clubs are unlikely to be a particularly important channel for travel insurance distribution... 227 FINACCORD (08/2015) VII
Direct distribution by specialist travel insurers... 227 MAPFRE has been collaborating with L'Européenne for several years...... 227... and is one of three specialists to sell directly in France... 227 Online aggregators and brokers... 227 The involvement of French aggregators in travel insurance remains limited...... 227... and two major players operate in this field as agents rather than as genuine comparison sites... 228 The French market features a number of specialist travel insurance brokers... 228 Other online brands... 229 Two international intermediaries are also prominent in direct online distribution... 229 Retailers... 229 Retailers in France only sell travel insurance through their travel agency subsidiaries... 229 Other types of distributor... 229 Leading competitors... 229 Two providers are likely to account for a combined market share of at least 40%...... 230 with all but two others almost certainly falling below the 10% threshold... 230 Forecasts... 232 Underlying foreign travel market... 232 France's foreign travel market is likely to move up gradually between 2014 and 2018... 232 Market for travel insurance and assistance... 234 fuelling further growth in the associated insurance and assistance market... 234 9.0 GERMANY... 236 Introduction... 236 Underlying foreign travel market... 236 Overseas trips have recovered gradually from the trough of 2011... 236 German consumers have shown a slight tendency towards longer-haul travel in recent years... 238 Market for travel insurance and assistance... 239 Although not growing quickly, the market value reached a record level in 2014... 239 with annual policies accounting for over a third of the total... 239 A substantial proportion of the market volume is due to low-cost travel health insurance policies... 240 Distribution through travel trade, transportation and financial organisations... 241 Summary of organisations researched... 241 Provision rates... 242 Finaccord s research tracks 335 travel insurance schemes in Germany... 242 Operating models... 243 with the vast majority of these set up with a single external underwriter... 243 Competitor share of partnerships... 245 Three providers claim over three quarters of travel trade distribution partnerships...... 245 with a large number of other providers taking the residual portion of the market... 246 The provider with the most partnerships is not necessarily the one with the most important partnerships... 246 Allianz Global Assistance and ERV have the highest number of deals in the transportation category... 248 although AIG and HanseMerkur are also prominent in the weighted analysis... 248 Public sector insurers hold the largest number of partnerships in the financial sector... 250 which hosts over 40 competing underwriters... 250 resulting in a fragmented supply structure in this segment... 252 Travel insurance and assistance linked to payment cards and bank accounts... 252 Comprehensive travel insurance policies are commonly packaged with premium banking products... 252 Other distribution channels... 254 Automotive clubs... 254 ADAC plus five other automotive clubs are active as distributors of travel insurance... 254 Direct distribution by specialist travel insurers... 254 A number of specialists promote insurance directly to consumers... 254 FINACCORD (08/2015) VIII
Online aggregators and brokers... 254 Comparison sites are likely to have become more important as distributors of travel cover... 254 albeit several act as tied agents rather than aggregators in this sphere... 255 Other online brands... 255 Other specialised intermediaries include both international competitors and indigenous ones... 255 Retailers... 255 Other types of distributor... 255 Travel cover can be bought from two airline frequent flyer programs and one mobile network operator... 256 Leading competitors... 256 In terms of their market share, Allianz Global Assistance and ERV are being pursued by HanseMerkur... 256 although other competitors are likely to account for around a half of the total market value... 257 Other competitors include large generalist non-life insurers selling directly to customers... 257 Forecasts... 259 Underlying foreign travel market... 259 Insurable trips are likely to have broken through the 90 million per year barrier by 2018... 259 Market for travel insurance and assistance... 261 allowing for modest growth in gross written premiums from 2014 to 2018... 261 10.0 IRELAND... 263 Introduction... 263 Underlying foreign travel market... 263 The underlying Irish foreign travel market stagnated between 2010 and 2014... 263 and changed little in terms of preferred destinations... 265 Market for travel insurance and assistance... 266 The stand-alone travel insurance market has proved resilient in spite of falling trip numbers... 266 with annual policies accounting for well over half of the total... 267 Distribution through travel trade, transportation and financial organisations... 268 Summary of organisations researched... 268 Provision rates... 269 Over 80% of major potential distributors of travel cover in Ireland are actual distributors of the product... 269 Operating models... 270 One operating model type is dominant across most distribution categories... 270 Competitor share of partnerships... 272 Blue Insurance holds a substantial number of partnerships with travel trade entities... 272 working mainly (although not only) with MAPFRE Asistencia as underwriter... 272 Many other providers hold one or two relationships in the travel trade sector... 273 AXA and AIG are most prominent in the weighted analysis of partnerships... 273 Allianz Global Assistance is especially strong as a provider to airlines operating out of Ireland... 275 although it does not hold all of the most valuable relationships in this field... 275 The financial sector hosts a number of important distribution initiatives for travel insurance... 277 with ACE European Group and AIG claiming the most deals in this arena... 277 Vhi switched to a new provider of travel insurance in 2014... 277 which has a significant bearing on the weighted analysis of partnerships... 277 Travel insurance and assistance linked to payment cards and bank accounts... 279 Specific forms of travel insurance are commonly packaged with Irish payment cards... 279 Other distribution channels... 280 Automotive clubs... 280 Direct distribution by specialist travel insurers... 281 Online aggregators and brokers... 281 Aggregators tend to work with a panel of providers rather than offering whole-of-market comparisons... 281 and many brokers act as tied agents in the specific context of travel insurance... 281 Other online brands... 282 FINACCORD (08/2015) IX
Other online brands include Columbus Direct, JustCover, Travel Insurance Direct and World Nomads... 282 Retailers... 282 Supervalu has begun selling travel insurance in partnership with ACE European Group... 282 Other types of distributor... 282 A number of professional associations and trade unions organise travel insurance for their members... 282 Leading competitors... 282 One group is likely to have won a dominant position for itself in the Irish travel insurance market... 283 with its six nearest rivals claiming smaller shares of between 6% and 14%...... 283 and with the three after that all likely to hold market shares of less than 5%... 285 Forecasts... 286 Underlying foreign travel market... 286 Ireland s foreign travel market may see renewed growth between 2014 and 2018... 286 Market for travel insurance and assistance... 287 which will help to support the related travel insurance market... 287 11.0 ITALY... 290 Introduction... 290 Underlying foreign travel market... 290 After a significant downturn in 2013, the number of overseas trips recovered slightly in 2014... 290 The weak Italian economy has contributed to a fall in the share of long-haul trips... 292 Market for travel insurance and assistance... 293 The overall market for stand-alone travel cover in Italy is likely to have risen in 2014...... 293 with the share of annual policies tending to nudge up over time... 293 Several factors cause the average price of a travel insurance policy in Italy to be relatively low... 294 Distribution through travel trade, transportation and financial organisations... 295 Summary of organisations researched... 295 Provision rates... 296 Over 50% of the organisations investigated in the latest research distribute travel cover...... 296... compared to under 45% in the previous survey... 296 Operating models... 297 Almost three quarters of distributor organisations employ a single external underwriter... 297 Competitor share of partnerships... 299 One provider claims more than a third of unweighted travel trade distribution partnerships...... 299 and is also likely to be the leading provider when viewed in weighted terms... 299 Airline partnerships make Allianz Global Assistance a leader in the transportation category...... 301 although its partnerships are outflanked by that of another competitor in a weighted analysis... 301 Most insurance brands in Italy that sell travel cover underwrite their own policies...... 303... although opportunities exist for partnerships with other financial organisations...... 303... most notably banks... 303 Travel insurance and assistance linked to payment cards and bank accounts... 305 Around three quarters of credit card products in Italy carry at least some form of travel cover... 305 Other distribution channels... 307 Automotive clubs... 307 ACI utilises an insurance company that it co-owns for travel insurance offered to members... 307 Direct distribution by specialist travel insurers... 307 Several specialist travel insurers distribute insurance direct to consumers... 307 Online aggregators and brokers... 307 Aggregators tend to act as agents or multi-tied agents when it comes to selling travel cover... 307 Other online brands... 308 Retailers... 308 Other types of distributor... 308 Members of the MilleMiglia frequent flyer program can earn points by purchasing travel insurance... 308 FINACCORD (08/2015) X
Leading competitors... 308 The leading two providers are likely to claim a half of Italy s stand-alone travel insurance market...... 309 with other competitors taking much smaller shares through partnerships and direct sales... 309 Gruppo Filo diretto s AMI Assistance has a substantial roster of partners, largely in the travel trade...... 310... as does UnipolSai, which also benefits from access to a vast agency distribution network... 310 Forecasts... 312 Underlying foreign travel market... 312 Italy's foreign travel market is likely to stage a partial recovery between 2014 and 2018... 312 Market for travel insurance and assistance... 314 which will help the associated insurance and assistance to renewed growth... 314 12.0 NETHERLANDS... 316 Introduction... 316 Underlying foreign travel market... 316 Overseas trips peaked in 2012 before slipping back slightly in subsequent years... 316 Business trips continue to account for over 20% of total foreign trips... 316 Dutch consumers have shown an increasing preference for short-haul travel in recent years... 318 Market for travel insurance and assistance... 319 The stand-alone travel insurance market has been impacted by the decline in number of trips...... 319 and by a significant rise in the share of annual policies... 319 Distribution through travel trade, transportation and financial organisations... 321 Summary of organisations researched... 321 Provision rates... 322 Over three quarters of organisations researched are distributors of stand-alone travel cover... 322 Operating models... 323 While travel trade distributors use external partners, many banks have captive underwriters... 323 Competitor share of partnerships... 325 Europeesche Verzekeringen claims more than half of travel trade distribution partnerships...... 325... making it the channel leader in both unweighted and weighted terms... 325 Airline partnerships make Allianz Global Assistance a leader in the transportation category...... 327 followed by five other providers... 327 Most insurance brands and banks in the Netherlands that sell travel cover underwrite their own policies...... 329... although some sell through multiple brands... 329 The largest banks therefore deliver the largest potential market share... 329 Travel insurance and assistance linked to payment cards and bank accounts... 331 Around three quarters of credit card products in the Netherlands carry at least some form of travel cover... 331 Other distribution channels... 333 Automotive clubs... 333 Both main automotive clubs offer travel insurance underwritten by Unigarant... 333 Direct distribution by specialist travel insurers... 333 Allianz Global Assistance and Europeesche Verzekeringen promote insurance directly to consumers... 333 Online aggregators and brokers... 333 Aggregator involvement in travel insurance has grown in recent years...... 333 and personal lines brokers also distribute travel cover... 333 Other online brands... 334 Two international intermediaries are prominent in direct online distribution... 334 Retailers... 334 Two major retail brands are distributors of travel insurance...... 334 Other types of distributor... 334... as are several trade unions... 334 Leading competitors... 334 Three providers are each likely to hold shares of at least 10% of the travel insurance market...... 335 with the ranking heavily influenced by the distribution channels used for buying travel cover... 335 FINACCORD (08/2015) XI
Forecasts... 337 Underlying foreign travel market... 337 The foreign travel market in the Netherlands is likely to recover between 2014 and 2018... 337 Market for travel insurance and assistance... 339 although the associated insurance and assistance market is unlikely to grow much... 339 13.0 NORWAY... 341 Introduction... 341 Underlying foreign travel market... 341 Overseas trips per capita peaked at 1.85 in 2012 before slipping back in subsequent years... 341 although the split by destination of those trips varied little between 2010 and 2014... 343 Market for travel insurance and assistance... 344 Norway s travel insurance market is both sizeable and quite fast-growing... 344 with average premiums per policy that are very high compared to the rest of Europe... 345 Distribution through travel trade, transportation and financial organisations... 346 Summary of organisations researched... 346 Provision rates... 347 Two thirds of the organisations researched are distributors of stand-alone travel cover... 347 Operating models... 348 A number of banks utilise captive or joint venture underwriters for travel insurance... 348 Competitor share of partnerships... 351 Two specialist providers claim over three quarters of travel trade distribution partnerships...... 351 with the remainder splitting between four insurance companies... 351 In weighted terms, Europeiske Reiseforsikring is likely to derive the most business in this channel... 351 Four travel insurance providers hold partnerships with airlines serving Norwegian airports... 353 Stand-alone travel insurance provision is common among financial organisations in Norway... 355 with local savings banks providing a significant distribution channel... 355 In the weighted analysis, Gjensidige is just ahead of Tryg Forsikring and DNB Skadeforsikring... 355 Travel insurance and assistance linked to payment cards and bank accounts... 357 A fairly significant proportion of Norwegian payment cards feature some form of travel insurance... 357 Other distribution channels... 359 Automotive clubs... 359 All major automotive clubs in Norway have arrangements for stand-alone travel insurance... 359 Direct distribution by specialist travel insurers... 359 Several specialist underwriters promote travel insurance directly to consumers... 359 Online aggregators and brokers... 359 A state-sponsored financial services aggregator includes travel insurance comparisons... 359 Other online brands... 359 Retailers... 359 Europeiske Reiseforsikring entered into a travel insurance partnership with Coop at the end of 2014... 359 Other types of distributor... 360 SpareBank 1 Forsikring is the insurer used for travel cover by the LOfavør benefit program... 360 Leading competitors... 360 Europeiske Reiseforsikring and Gouda Reiseforsikring are the clear market leaders... 360 and there is unlikely to be much between them in terms of their market share... 360 There are many other competitors but only two are likely to have a market share of 10% or more... 363 Forecasts... 364 Underlying foreign travel market... 364 The foreign travel market in Norway will probably resume its growth between 2014 and 2018... 364 Market for travel insurance and assistance... 365 driving an advance in gross written premiums for travel insurance over the same period... 365 14.0 POLAND... 367 FINACCORD (08/2015) XII
Introduction... 367 Underlying foreign travel market... 367 Foreign travel out of Poland has surged since the trough experienced in 2011... 367 with a growing proportion of trips to more far-flung destinations... 369 Market for travel insurance and assistance... 370 The value (and volume) of the Polish travel insurance market reached a new high point in 2014... 370 with annual policies steadily gaining in popularity... 370 Distribution through travel trade, transportation and financial organisations... 372 Summary of organisations researched... 372 Provision rates... 373 Almost 70% of the organisations researched are distributors of stand-alone travel cover... 373 Operating models... 374 A significant number of Polish distributors use more than one insurance partner... 374 Competitor share of partnerships... 377 Three insurers claim over a half of total travel trade relationships... 377 although six others have more than one partnership in this field... 377 SIGNAL IDUNA leads the unweighted count but ERV dominates the weighted analysis... 379 Three providers are particularly active in distributing travel cover through transportation organisations... 379 although another company enters the top three in the weighted analysis... 379 Blue Finance intermediates travel insurance for a number of Polish banks... 381 while most insurers have between one and three deals in this sector... 381 PZU s size as an insurer in its own right plus a key banking deals make it prominent in weighted terms... 381 Travel insurance and assistance linked to payment cards and bank accounts... 383 Comprehensive travel cover is the most common type of travel insurance bundled with banking products... 383 Other distribution channels... 385 Automotive clubs... 385 InterRisk is the provider of travel cover to Poland s main automotive club... 385 Direct distribution by specialist travel insurers... 385 Several specialists sell policies directly online... 385 Online aggregators and brokers... 385 A significant number of comparison sites are active as distributors of travel insurance... 385 Other online brands... 386 The Polish market features a variety of other online brands distributing on a direct or semi-direct basis... 386 Retailers... 386 Other types of distributor... 386 Leading competitors... 386 ERV and ERGO Hestia combined are likely to be clear leaders in the travel insurance market... 386 although three other insurers may have market shares of more than 10%...... 388 and more than 20 are involved in total... 388 Forecasts... 389 Underlying foreign travel market... 389 Business trips overseas will continue to outpace leisure trips out of Poland... 389 Market for travel insurance and assistance... 391 The outlook for Poland s travel insurance sector is comparatively favourable... 391 15.0 PORTUGAL... 393 Introduction... 393 Underlying foreign travel market... 393 Outbound travel from Portugal edged up between 2010 and 2014... 393 although the trends for business and leisure travel have been markedly different... 393 and with destinations outside the EU and North America apparently increasing in popularity... 395 Market for travel insurance and assistance... 396 FINACCORD (08/2015) XIII
The value of the Portuguese travel insurance market remains small but is growing nonetheless... 396 with business travel policies accounting for a comparatively high proportion of the total... 396 Distribution through travel trade, transportation and financial organisations... 398 Summary of organisations researched... 398 Provision rates... 399 Distribution of stand-alone travel cover is concentrated in five segments... 399 Operating models... 400 A number of banks utilise their own captive underwriters for travel insurance... 400 Competitor share of partnerships... 403 Victoria Seguros provides travel insurance for over half of travel trade entities researched... 403 with 14 other providers holding one to three partnerships each in this sphere... 403 The market leader expands its share still further in the weighted analysis... 403 Allianz Global Assistance dominates sales of travel cover via airlines flying in and out of Portugal... 405 In the financial sector, insurers have between one and three distribution arrangements each... 407 with the weighted analysis pointing to Fidelidade as the likely leader in this category... 407 Travel insurance and assistance linked to payment cards and bank accounts... 409 Travel cover bundled with banking products in Portugal is rarely comprehensive... 409 Other distribution channels... 411 Automotive clubs... 411 An underwriter based in Spain serves Portugal s main automotive club... 411 Direct distribution by specialist travel insurers... 411 Three specialists distribute online and another only by phone... 411 Online aggregators and brokers... 411 Online aggregation has not developed in Portugal, although the broker channel is important... 411 as a consequence of the relatively high proportion of business travel policies within the total... 411 Other online brands... 411 Retailers... 412 Other types of distributor... 412 The Fundação INATEL operates its own travel firm... 412 Leading competitors... 412 The importance of business travel policies is likely to make AIG the market leader in Portugal... 413 although its nearest rivals focus more closely on the leisure travel insurance market... 414 and others combine revenue from both sources... 414 Forecasts... 415 Underlying foreign travel market... 415 Better growth is forecast for the Portuguese foreign travel market in the years up to 2018... 415 Market for travel insurance and assistance... 417 which will help the value of the related insurance market to move up further... 417 16.0 ROMANIA... 419 Introduction... 419 Underlying foreign travel market... 419 Foreign trips out of Romania hit a five-year high in 2014... 419 and may understate the potential for travel insurance given one important caveat... 419 Virtually all overseas trips are to other EU countries... 421 Market for travel insurance and assistance... 423 Romania s travel insurance market is relatively small but growing quite rapidly nonetheless... 423 Most policies bought are not comprehensive as they cover specific travel-related risks... 423 Distribution through travel trade, transportation and financial organisations... 425 Summary of organisations researched... 425 Provision rates... 426 Stand-alone travel cover is available from around three quarters of organisations researched... 426 FINACCORD (08/2015) XIV
Operating models... 427 A significant number of Romanian distributors use more than one insurance partner... 427 Competitor share of partnerships... 430 One insurer claims an unweighted share of travel trade partnerships of close to a half... 430 while most competitors have only one or two partnerships in this category... 430 In the weighted analysis, the leading two providers switch positions... 430 AIG is prominent as a provider of travel cover sold via airlines... 432 and especially so in the weighted analysis of partnerships... 432 In the financial sector, distribution partnerships are spread quite thinly across multiple providers... 434 with Omniasig, Astra and Groupama most prominent in the weighted analysis... 434 Travel insurance and assistance linked to payment cards and bank accounts... 436 Comprehensive travel cover is more often than not available with premium banking products... 436 Other distribution channels... 437 Automotive clubs... 437 Direct distribution by specialist travel insurers... 438 Online aggregators and brokers... 438 Several online aggregators and brokers act as distributors of travel insurance in Romania... 438 Other online brands... 438 Three major insurers operate separate online brands for direct sales... 438 Retailers... 438 Three retail brands have arrangements for selling travel insurance to their customers... 438 Other types of distributor... 438 as do two mobile network operators... 438 Leading competitors... 439 Three providers are competing closely for leadership of the Romanian travel insurance sector... 439 with Generali the most likely to have edged ahead of its two main rivals... 439 and with most other competitors likely to hold a share of no more than 6% each... 439 Forecasts... 441 Underlying foreign travel market... 441 The number of business trips is predicted to continue outpacing the number of holiday trips... 441 Market for travel insurance and assistance... 443 The value of Romania s travel insurance market ought to increase in both nominal and real terms... 443 17.0 RUSSIA... 445 Introduction... 445 Underlying foreign travel market... 445 Strong growth in foreign travel from 2010 to 2013 came to an abrupt end in 2014... 445 which has particularly impacted travel to European destinations outside of the EU... 447 Market for travel insurance and assistance... 448 Unsurprisingly, growth in Russia s travel insurance market slowed in 2014... 448 although policies sold purely for domestic trips have helped to compensate... 448 Average policy prices in Russia are low for a number of reasons... 449 Distribution through travel trade, transportation and financial organisations... 450 Summary of organisations researched... 450 Provision rates... 451 Approaching 80% of the organisations researched are distributors of stand-alone travel cover... 451 Operating models... 452 Most schemes are run in conjunction with a single, external underwriter... 452 Competitor share of partnerships... 455 Eight insurers partner with at least five travel trade organisations each... 455 although there are at least 35 providers in total in this category... 455 Ingosstrakh leads the weighted analysis, ahead of VSK, ERV and AlfaStrakhovanie... 455 FINACCORD (08/2015) XV
AlfaStrakhovanie benefits from its distribution relationships with numerous airlines... 457 although a large number of other providers again operate in this category... 457 Deals with Aeroflot, S7 Airlines and Transaero Airlines prove particularly important in the weighted analysis... 457 Among financial sector distributors, AlfaStrakhovanie again leads by number of partnerships... 459 ahead of Allianz, RESO-Garantia and VSK... 459 with the supply structure especially fragmented in this field... 459 Rosgosstrakh edges ahead of AlfaStrakhovanie in the weighted analysis for this category... 459 which is mainly due to its prominence as a direct distributor in its own right... 461 Travel insurance and assistance linked to payment cards and bank accounts... 461 Assistance is bundled more regularly with banking products than other types of travel cover... 461 Other distribution channels... 463 Automotive clubs... 463 Liberty Strakhovanie has established a distribution relationship with the RAMK... 463 Direct distribution by specialist travel insurers... 463 Online aggregators and brokers... 463 A number of online aggregators have commenced activity in travel insurance in recent years... 463 Other online brands... 463 Some insurers have begun to use dedicated travel insurance brands to sell policies online in Russia... 463 Retailers... 464 At least two major retail brands act as distributors of travel insurance... 464 Other types of distributor... 464 with two mobile network operators also involved in this market... 464 Leading competitors... 464 Ingosstrakh and AlfaStrakhovanie are likely to command the highest market shares... 464 with a clear leader over VSK and ERV, ranked third and fourth respectively... 466 although numerous other players could hold over a half of the total market between them... 466 Forecasts... 467 Underlying foreign travel market... 467 Appetite for foreign travel among Russian customers is likely to continue falling up to 2018... 467 Market for travel insurance and assistance... 469 albeit increasing policy take-up rates and domestic trips will bolster insurance market growth... 469 18.0 SPAIN... 471 Introduction... 471 Underlying foreign travel market... 471 After an apparent downturn in 2013, the number of overseas trips recovered in 2014... 471 Increasing availability of low-cost flights has caused Spanish travellers to favour European destinations... 473 Market for travel insurance and assistance... 474 The overall market for stand-alone travel cover in Spain is unlikely to have grown in recent years...... 474 although the share of annual policies is believed to have nudged up slightly... 475 Several factors cause the average price of a travel insurance policy in Spain to be relatively low... 475 Distribution through travel trade, transportation and financial organisations... 476 Summary of organisations researched... 476 Provision rates... 477 Well over a half of organisations researched are distributors of stand-alone travel cover... 477 Operating models... 478 A significant minority of travel trade entities utilise a broker with or instead of a single external underwriter... 478 Competitor share of partnerships... 480 Four providers claim more than half of travel trade distribution partnerships...... 480... in a market populated by both direct underwriters and specialist intermediaries... 480 InterMundial is comfortably the largest intermediary by unweighted share of partnerships... 481 Viewed in weighted terms, ERV is likely to be the leading provider to travel trade entities...... 481... although airline partnerships make Allianz Global Assistance a leader in the transportation category...... 483 FINACCORD (08/2015) XVI
followed by two providers with one major airline deal each... 483 Most insurance brands in Spain that sell travel cover underwrite their own policies...... 485... although banks tend to work with external providers... 485 MAPFRE s strength in the category of financial organisations is due to its own direct sales capability... 485 Travel insurance and assistance linked to payment cards and bank accounts... 487 Around three quarters of credit card products in Spain carry at least some form of travel cover... 487 Other distribution channels... 489 Automotive clubs... 489 Both main automotive clubs offer travel insurance underwritten by captive entities... 489 Direct distribution by specialist travel insurers... 489 Specialist travel insurers compete with the major brands by providing insurance direct to consumers... 489 Online aggregators and brokers... 489 Aggregator involvement in travel insurance has grown in recent years...... 489... with aseguratuviaje.com, Rastreator.com and Seguros.es all active in this field...... 489... although other comparison sites have yet to enter the fray... 490 Other online brands... 490 Two international intermediaries are also prominent in direct online distribution... 490 Retailers... 490 Supermarket chain Eroski distributes travel insurance sourced from Aon...... 490... with other retail brands indirectly involved through travel agency subsidiaries... 490 Other types of distributor... 490 Members of Iberia's frequent flyer program can earn points by purchasing travel insurance... 490 Leading competitors... 491 Two providers are close rivals for leadership in Spain s travel insurance market...... 491 with two others also likely to hold a market share at close to or just over 10%... 491 Insurers outside of the top ten claim a residual combined market share of between 11% and 15%... 492 Forecasts... 494 Underlying foreign travel market... 494 Spain's foreign travel market is likely to stage a strong recovery between 2014 and 2018... 494 Market for travel insurance and assistance... 496 fuelling growth in the associated insurance and assistance market... 496 19.0 SWEDEN... 498 Introduction... 498 Underlying foreign travel market... 498 Sweden experienced consistent growth in overseas trips between 2010 and 2014...... 498 with a likely trend for shorter but more frequent journeys during this period... 500 Market for travel insurance and assistance... 501 The value of the Swedish stand-alone travel insurance market has displayed steady growth... 501 although it is limited by the practice of bundling travel cover with household insurance... 501 Distribution through travel trade, transportation and financial organisations... 503 Summary of organisations researched... 503 Provision rates... 504 Over a half of the organisations researched are distributors of stand-alone travel cover... 504 Operating models... 505 Most distribution relationships are based around use of a single, external underwriter... 505 Competitor share of partnerships... 508 Three providers claim over 90% of travel trade distribution partnerships...... 508 with three other providers holding only one or two partnerships each... 508 Concentration in this distribution segment appears to have increased in recent years... 508 When viewed in weighted terms, Europeiska ERV and Gouda Reseförsäkring are close competitors... 508 Six providers claim either one or two partnerships in the transportation category...... 510 although one becomes dominant in the weighted analysis... 510 FINACCORD (08/2015) XVII
Comparatively few financial organisations in Sweden offer stand-alone travel insurance... 512 The only underwriter to offer stand-alone travel cover gains a large weighted share... 512 Travel insurance and assistance linked to payment cards and bank accounts... 514 A significant proportion of Swedish payment cards feature some form of travel insurance... 514 Other distribution channels... 516 Automotive clubs... 516 Direct distribution by specialist travel insurers... 516 The leading specialists both promote travel insurance directly to consumers... 516 Online aggregators and brokers... 516 While comparison sites exist, they lack the ability to transact online... 516 Other online brands... 516 Relatively few other travel insurance brands are visible online... 516 Retailers... 516 Other types of distributor... 517 Leading competitors... 517 Two specialists are likely to account for up to around two thirds of the total market value between them... 517 with two others some way behind at between 10% and 16% of the market total... 517 Forecasts... 519 Underlying foreign travel market... 519 The Swedish foreign travel market in Sweden will expand further between 2014 and 2018... 519 Market for travel insurance and assistance... 521 resulting in growth in gross written premiums for travel insurance over the same period... 521 20.0 SWITZERLAND... 523 Introduction... 523 Underlying foreign travel market... 523 The number of foreign trips out of Switzerland has advanced rapidly in recent years... 523 buoyed by the strength of the Swiss Franc against the Euro... 525 Market for travel insurance and assistance... 526 With a rising number of trips, the stand-alone travel insurance market has also grown... 526 Annual policies are especially important in the Swiss market... 526 Distribution through travel trade, transportation and financial organisations... 528 Summary of organisations researched... 528 Provision rates... 529 Few Swiss banks sell travel insurance as a stand-alone product... 529 Operating models... 530 The vast majority of arrangements are organised through a single, external underwriter... 530 Competitor share of partnerships... 533 Among travel trade entities, Allianz Global Assistance is leader in both unweighted and weighted terms... 533 comfortably ahead of EUROPÄISCHE and seven other providers with fewer relationships... 533 Two providers dominate in the transportation category due mainly to key relationships with airlines... 535 Most insurance brands underwrite their own travel insurance policies... 537 making the largest insurers most prominent in the weighted analysis... 537 Travel insurance and assistance linked to payment cards and bank accounts... 539 Forms of travel insurance are commonly packaged with Swiss payment cards... 539 Other distribution channels... 541 Automotive clubs... 541 Touring Club Suisse is a very significant provider of travel insurance policies... 541 Direct distribution by specialist travel insurers... 541 Several specialists, including a few health insurers, distribute directly to consumers... 541 Online aggregators and brokers... 541 Aggregator involvement in travel insurance remains fairly limited in Switzerland... 541 FINACCORD (08/2015) XVIII
Other online brands... 542 Other online brands include Sekur TravelCard and World Nomads... 542 Retailers... 542 Several major retail brands operate their own travel agencies... 542 Other types of distributor... 542 AXA Winterthur and EUROPÄISCHE both hold partnerships with alternative distributors... 542 Leading competitors... 542 Three travel insurance underwriters are likely to claim at least 60% of the total market value... 543 Having bought Nationale Suisse, the owner of EUROPÄISCHE, Helvetia is now a significant competitor... 544 By likely market share, AXA Winterthur and Zurich are ranked fourth and fifth, respectively... 545 Forecasts... 545 Underlying foreign travel market... 545 Both holiday and business trips out of Switzerland are likely to grow further between 2014 and 2018... 545 Market for travel insurance and assistance... 547 facilitating gentle growth in the value of the travel insurance market over the same period... 547 21.0 TURKEY... 549 Introduction... 549 Underlying foreign travel market... 549 Foreign travel out of Turkey has recovered strongly from the trough experienced in 2012... 549 with non-european destinations taking up a particularly high proportion of the total... 551 Market for travel insurance and assistance... 552 Rising trip numbers have driven growth in the Turkish travel insurance sector... 552 with travel health insurance accounting for a significant proportion of this market... 552 Distribution through travel trade, transportation and financial organisations... 554 Summary of organisations researched... 554 Provision rates... 555 Well over 80% of the organisations researched are distributors of stand-alone travel cover... 555 Operating models... 556 A significant number of Turkish distributors use more than one insurance partner... 556 Competitor share of partnerships... 559 Insurance is commonly sourced from Turins Sigorta (itself owned by TÜRSAB)... 559 although several major insurers have a significant number of travel trade partners... 559 and a very wide range of companies is involved in this distribution channel... 559 On a weighted analysis, three insurers hold over three quarters of travel trade partnerships... 559 AIG is prominent among the many providers of travel insurance for transportation companies in Turkey... 561 especially so in the weighted analysis of partnerships... 561 Turkish banks commonly work with more than one travel insurer... 563 with a very large number of providers involved in the financial sector... 563 AXA Sigorta is just ahead of Anadolu Sigorta as channel leader in the weighted analysis... 563 Travel insurance and assistance linked to payment cards and bank accounts... 566 Other distribution channels... 567 Automotive clubs... 567 Direct distribution by specialist travel insurers... 568 Online aggregators and brokers... 568 Brokers constitute a significant distribution channel for travel insurance in Turkey... 568 Other online brands... 568 Retailers... 568 Other types of distributor... 568 Providers of visa application services are a minor additional channel for travel insurance... 568 Leading competitors... 569 AIG is likely to be the leader in Turkey s travel insurance sector but the market is a fragmented one... 569 FINACCORD (08/2015) XIX
As many as five competitors claim up to 10% of the market each... 570 Underwriters outside of the top ten are likely to hold between 19% and 26% of the total market... 571 Forecasts... 572 Underlying foreign travel market... 572 Overseas trips in 2018 are predicted to be more than 2 million higher than they were in 2014... 572 Market for travel insurance and assistance... 574 which should help to propel Turkey s travel insurance market further forwards... 574 22.0 UK... 576 Introduction... 576 Underlying foreign travel market... 576 Holiday trips have been growing at more than three times the speed of business trips... 576 The breakdown of foreign trips by destination has varied little in recent years... 578 Market for travel insurance and assistance... 579 Following a low point reached in 2011, the UK s travel insurance market has begun growing again... 579 with annual policies accounting for over a third of the total in force... 580 Distribution through travel trade, transportation and financial organisations... 581 Summary of organisations researched... 581 Provision rates... 582 Provision rates among travel trade entities have slipped back since Finaccord s previous research... 582 Operating models... 584 Specialised travel insurance intermediaries play an important role in the UK travel insurance market... 584 albeit they usually work with a single, external underwriter... 584 Competitor share of partnerships... 586 On an outright basis, Allianz Global Assistance holds the most partnerships with travel trade entities... 586 Campbell Irvine and Rock Insurance Services are the most visible specialised intermediaries... 586 Viewed in weighted terms, AXA is comfortably the leading provider in this distribution segment... 587 followed by Thomas Cook s White Horse Insurance Ireland subsidiary... 587 Both AIG and Allianz Global Assistance hold a number of significant airline partnerships... 589 Other competitors are limited to one deal each albeit some of these are significant ones... 589 A diverse range of firms can be found working with banks and insurance brands in the UK... 591 most of which are named as providers only once or twice... 591 Aviva holds the highest weighted share in this category, followed by Direct Line Group s UK Insurance... 593 Travel insurance and assistance linked to payment cards and bank accounts... 593 Packaged accounts constitute an important distribution channel for comprehensive travel cover... 593 with almost all that are actively marketed incorporating it according to the latest research... 594 Other distribution channels... 595 Automotive clubs... 595 The AA revamped its travel insurance proposition at the beginning of 2015... 595 Direct distribution by specialist travel insurers... 595 A number of specialists promote insurance directly to consumers... 595 Online aggregators and brokers... 595 Aggregator involvement in travel insurance is extensive in the UK... 595 with Google having entered the fray through Google Compare... 595 Other online brands... 596 Numerous other intermediaries are also engaged in direct online distribution... 596 Retailers... 596 Major retail brands often offer travel insurance although some weaker ones have exited the market... 596 Other types of distributor... 597 Distribution initiatives for travel insurance are visible across many alternative channels... 597 Leading competitors... 597 Three groups are likely to claim around a half of the total market... 597 The position of one provider has received a large boost through its deal with the Post Office... 599 FINACCORD (08/2015) XX