Travel Insurance in the UK, Key Trends and Opportunities to 2018

Published: Apr, 2014 | Pages: 63 | Publisher: Timetric
Industry: Insurance | Report Format: Electronic (PDF)


Synopsis
The report provides market analysis, information and insights into the UK travel insurance business, including:
Provides a snapshot of market size and market segmentation
Comprehensive analysis of claims, drivers and market outlook
Analysis of distribution channels
Deals, news and regulatory developments 

Summary
Gross written premiums for travel insurance were valued at GBP724 million in 2012, and an estimated GBP742 million in 2013. Volatile premium growth was recorded during the review period (2008-2012), as demand was strongly influenced by the UK's recessionary economic backdrop limiting demand for overseas travel. The compound annual growth rate (CAGR) registered during the review period was more stable at -0.53%, however. 
UK residents made fewer trips abroad during the review period, with discretionary spending on holidays constrained by weak growth in earnings, employment uncertainty and rising travel costs, while businesses reduced budgets for corporate travel. A preference for domestic holidays induced a 12.5 million dip in the number of leisure and business trips abroad during the review period. 
Medical costs represented 56% of travel insurance claims in 2012, and, despite fewer overseas trips being made, costs relating to claims have risen sharply. The average medical claim totaled GBP900 in 2012, 50% higher than in 2004. The reported refusal of the European Health Insurance Card (EHIC) in hospitals in Spain, Greece and Cyprus added to insurers' cost burdens. 
The travel insurance category is highly competitive and has become increasingly commoditized, with insurers competing on price to maintain market share. Online distribution - through direct and price-comparison website channels - is well established, and has fostered an increase in the number of low-cost internet-only brands. The underwriting capacity for these products is dominated by the 10 largest insurers in the category. 
Stronger UK economic growth from 2014 will spur an improvement in consumer confidence and spending to provide the impetus to growth in demand for travel insurance over the forecast period. Gross written premiums are forecast to grow at a CAGR of 2.20% over 2014-2018, reaching a total of GBP829 million in 2018. 
Opportunities exist to deepen penetration in the category. An aging population and trends for a more active retirement are increasing demand for travel insurance policies with no age limits. A parliamentary review in 2013 found that 91% of travel policies available in the UK imposed an upper age limit, and age-related charities have begun lobbying for market changes. Customer education also allows insurers to highlight the shortfalls of the basic cover offered through the EHIC and Civil Aviation Authority compensation schemes. 
Scope
 This report provides market analysis, information and insights into the UK travel insurance business
It provides a global snapshot of market size 
It analyses drivers and the outlook for the market 
It provides information on distribution channels
It covers deals, news and regulatory developments 
Reason To Buy
 Gain an understanding of the UK travel insurance market size
Learn about the performance of market drivers and distribution channels
Understand the competitive landscape in terms of performance, profitability and product innovation
Find out more on key deals and recent developments in the market 
Key Highlights
 Gross written premiums topped GBP720 million in 2012 and 2013
Economic conditions discouraged overseas travel
Rising medical costs have increased claims
Internet sales are a major distribution channel
Premium growth will be maintained over 2014-2018
Penetration can be deepened through policy innovation and customer education

 1 Executive Summary 
2 Introduction
2.1 What is this Report About?
2.2 Definitions
2.3 Methodology
3 Market Alysis 
3.1 Market Size 
3.1.1 Penetration and density 
3.2 Claims 
3.2.1 Claims review
3.2.2 Claims outlook 
3.3 Market Drivers 
3.4 Market Outlook 
3.5 Distribution Channels
3.5.1 Distribution outlook
4 Competitive Landscape 
4.1.1 Investment returns 
4.1.2 Profitability outlook 
4.2 Review - The Best Performers of 2012 
4.3 Product Innovation 
4.4 Travel Insurance - SWOT Alysis 
5 Porter's Five Forces Alysis 
5.1 Bargaining Power of Suppliers: Low 
5.2 Bargaining Power of Buyers: High 
5.3 Barriers to Entry: Medium 
5.4 Intensity of Rivalry: Medium to High 
5.5 Threat of Substitution: Medium 
6 Deals 
6.1 Allianz Partners With STA Travel 
6.2 BIBA Renews Deal With Specialist Broker 
6.3 Holiday Extras Acquires Thomas Cook's Insurance Subsidiary 
6.4 Axa Increases Broker Capacity 
6.5 AIG to Underwrite Bupa's Travel Insurance Products 
7 News 
7.1 FCA Recommends Shake-up of Insurance Add-ons 
7.2 Abta Renews Calls for Regulation Review 
8 Regulation and Compliance 
8.1 Recent Changes 
8.1.1 Consumer Insurance (Disclosure and Representations) Act 2012 
8.1.2 EU Gender Directive 
8.1.3 Civil Aviation (ATOL) Regulations 2012 
8.2 Upcoming Regulations 
8.2.1 Solvency II 
9 Macroeconomic Backdrop 
9.1 Real GDP Growth 
9.2 Labor Market Conditions 
9.3 Inflation
9.4 Disposable Income
9.5 Interest Rates 
10 Company Profiles 
10.1 ACE European Group Ltd - Company Overview 
10.1.1 ACE European Group Ltd - key facts 
10.1.2 ACE European Group Ltd - main products 
10.1.3 ACE European Group Ltd - main competitors
10.1.4 ACE European Group Ltd - key employees
10.2 Ageas (UK) Ltd - Company Overview
10.2.1 Ageas (UK) Ltd - key facts 
10.2.2 Ageas (UK) Ltd - main products 
10.2.3 Ageas (UK) Ltd - main competitors 
10.2.4 Ageas (UK) Ltd - key employees 
10.3 AIG Europe Ltd - Company Overview 
10.3.1 AIG Europe Ltd - key facts 
10.3.2 AIG Europe Ltd - main products 
10.3.3 AIG Europe Ltd - main competitors 
10.3.4 AIG Europe Ltd - key employees 
10.4 Allianz Insurance Plc - Company Overview 
10.4.1 Allianz Insurance Plc - key facts 
10.4.2 Allianz Insurance Plc - main products 
10.4.3 Allianz Insurance Plc - main competitors 
10.4.4 Allianz Insurance Plc - key employees 
10.5 Aviva Plc - Company Overview 
10.5.1 Aviva Plc - key facts 
10.5.2 Aviva Plc - main products 
10.5.3 Aviva Plc - main competitors 
10.5.4 Aviva Plc - key employees
10.6 Axa UK Plc - Company Overview 
10.6.1 Axa UK Plc - key facts 
10.6.2 Axa UK Plc - main products 
10.6.3 Axa UK Plc - main competitors 
10.6.4 Axa UK Plc - key employees 
10.7 Chubb Insurance Company of Europe SE - Company Overview 
10.7.1 Chubb Insurance Company of Europe SE - key facts 
10.7.2 Chubb Insurance Company of Europe SE - main products 
10.7.3 Chubb Insurance Company of Europe SE - main competitors 
10.7.4 Chubb Insurance Company of Europe SE - key employees 
10.8 Direct Line Insurance Group Plc - Company Overview 
10.8.1 Direct Line Insurance Group Plc - key facts 
10.8.2 Direct Line Insurance Group Plc - main products 
10.8.3 Direct LineInsurance Group Plc - main competitors 
10.8.4 Direct Line Insurance Group Plc - key employees 
10.9 Great Lakes Reinsurance (UK) Plc - Company Overview 
10.9.1 Great Lakes Reinsurance (UK) Plc - key facts
10.9.2 Great Lakes Reinsurance (UK) Plc - main products 
10.9.3 Great Lakes Reinsurance (UK) Plc - main competitors 
10.9.4 Great Lakes Reinsurance (UK) Plc - key employees
10.10 Mapfre Asistencia Compania Interciol de Seguros y Reaseguros, SA - Company Overview 
10.10.1 Mapfre Asistencia Compania Interciol de Seguros y Reaseguros, SA - key facts 
10.10.2 Mapfre Asistencia Compania Interciol de Seguros y Reaseguros, SA - main products 
10.10.3 Mapfre Asistencia Compania Interciol de Seguros y Reaseguros, SA - main competitors 
10.10.4 Mapfre Asistencia Compania Interciol de Seguros y Reaseguros, SA - key employees 
11 Statistics 
11.1 Review Period: 2008-2012 
11.2 Forecast Period: 2013-2017
12 Appendix 
12.1 Methodology 
12.2 Contact Timetric 
12.3 About Timetric 
12.4 Timetric's Services 
12.5 Disclaimer


List of Tables
Table 1: Insurance Industry Definitions 
Table 2: UK Travel Insurance - Market Summary (GBP Thousand), 2008-2012 
Table 3: UK Travel Insurance - Online Retailers 
Table 4: UK Travel Insurance -Key Affinity Partnerships 
Table 5: UK Travel Insurance - Market SWOT Alysis 
Table 6: Recent and Upcoming Regulatory Changes
Table 7: ACE European Group Ltd, Key Facts 
Table 8: ACE European Group Ltd, Main Products 
Table 9: ACE European Group Ltd, Key Employees 
Table 10: Ageas (UK) Ltd, Key Facts 
Table 11: Ageas (UK) Ltd, Main Products 
Table 12: Ageas (UK) Ltd, Key Employees 
Table 13: AIG Europe Ltd, Key Facts 
Table 14: AIG Europe Ltd, Main Products
Table 15: AIG Europe Ltd, Key Employees 
Table 16: Allianz Insurance Plc, Key Facts 
Table 17: Allianz Insurance Plc, Main Products 
Table 18: Allianz Insurance Plc, Key Employees 
Table 19: Aviva Plc, Key Facts
Table 20: Aviva Plc, Main Products
Table 21: Aviva Plc, Key Employees
Table 22: Axa UK Plc, Key Facts
Table 23: Axa UK Plc, Main Products
Table 24: Axa UK Plc, Key Employees
Table 25: Chubb Insurance Company of Europe SE, Key Facts 
Table 26: Chubb Insurance Company of Europe SE, Main Products 
Table 27: Chubb Insurance Company of Europe SE, Key Employees 
Table 28: Direct Line Insurance Group Plc - Key Facts 
Table 29: Direct Line Insurance Group Plc - Main Products 
Table 30: Direct Line Insurance Group Plc - Key Employees 
Table 31: Great Lakes Reinsurance (UK) Plc, Key Facts 
Table 32: Great Lakes Reinsurance (UK) Plc, Main Products 
Table 33: Great Lakes Reinsurance (UK) Plc, Key Employees 
Table 34: Mapfre Asistencia Compania Interciol De Seguros Y Reaseguros, SA, Key Facts
Table 35: Mapfre Asistencia Compania Interciol de Seguros y Reaseguros, SA, Main Products 
Table 36: Mapfre Asistencia Compania Interciol de Seguros y Reaseguros, SA, Key Employees 
Table 37: Travel Insurance (GBP Thousand), 2008-2012 
Table 38: Travel Insurance (GBP Thousand), 2013-2018