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Travel Insurance and Assistance in Canada

Table of Contents 

Executive Summary

Introduction

Market Analysis

List of Graphics / Tables

0.0 EXECUTIVE SUMMARY

1.0 INTRODUCTION

What is this report about?

Rationale

This report builds upon Finaccord's previous ground-breaking studies about this topic

Methodology

Primary research

The survey includes over 200 travel trade, transportation and financial organisations...

... including airlines, banks, insurance brands and both traditional and online travel trade entities

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 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

2.0 MARKET ANALYSIS

Introduction

Underlying foreign travel market

Outbound trips grew steadily from 2011 to 2014 but then dropped off somewhat in 2015…

… in part as a result of the decline in value of the Canadian dollar against the US dollar

Almost three quarters of all overnight trips are to the US or Mexico…

...and the UK remains the most popular European destination

Domestic trips of one week or more constitute a significant proportion of the market…

… as some healthcare costs may be charged outside of the traveller’s home province

Market for travel insurance and assistance

Most of the growth in the market value has been due to rising average policy prices

Sales through group benefits schemes cause annual policies to be relatively important

Distribution through travel trade, transportation and financial organisations

Summary of organisations researched

Provision rates

Stand-alone travel cover is available from over three quarters of potential distributors researched…

Operating models

… with most initiatives arranged via a single external underwriter…

… although several alternative operating models exist in the financial category

Competitor share of partnerships – travel trade entities

Manulife and Allianz Global Assistance account for almost two thirds of partnerships in this sector…

... although a number of other Canadian and US insurers hold several partnerships each

In the weighted analysis, four competitors account for almost 90% of the total

The duo of Aon Affinity and Transamerica benefits from a number of significant partnerships

Competitor share of partnerships – transportation organisations

A number of insurers hold partnerships with airlines flying to and from Canada…

… with RBC Insurance gaining by far the highest weighted share

Competitor share of partnerships – financial organisations

Four insurers have more than two distribution relationships among financial partners…

… in a segment that features an especially wide range of providers

A number of insurance brands sell white-labelled travel insurance policies

Several different provincial insurers sell through the Blue Cross brand in Canada

La Capitale sources travel cover from SecuriGlobe, a captive broker

Manulife and RSA Canada claim the highest weighted share of partnerships in this field

Travel insurance and assistance linked to payment cards and bank accounts

More than 35% of credit card products feature comprehensive travel cover…

… rising to over 50% of premium card products

Other distribution channels

Alternative distribution channels for travel cover are particularly important in Canada…

Automotive clubs

… with Orion Travel Insurance serving a majority of the country’s automotive clubs

Direct distribution by specialist travel insurers

The Canadian market features a high number of specialists selling policies directly

Online aggregators and brokers

Kanetix operates several online brands that offer travel insurance comparisons…

… and few brokers also specialise in this field

Retailers

Travel cover is also on offer from a range of Canadian retail brands

Other types of distributor

Leading competitors

Manulife is likely to be a clear leader in the Canadian travel insurance sector…

… with a market share that is probably double that of its closest competitor

The Co-operators Group benefits from its relationship with Allianz Global Assistance

RBC Insurance remains significant in spite of its having divested a part of its travel insurance portfolio

Underwriters outside of the top ten control between 10% and 20% of premiums when combined

Forecasts

Underlying foreign travel market

Between 2015 and 2019, the number of foreign trips is not predicted to return to its peak of 2014…

Market for travel insurance and assistance

… although this will not prevent moderate growth in the travel insurance market

 

LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY

Key market data for travel insurance and assistance in Canada, 2011, 2015 and 2019

1.0 INTRODUCTION

Travel insurance and assistance: how it all fits together

2.0 MARKET ANALYSIS

Number of foreign trips undertaken by residents of Canada, segmented by purpose of trip, 2011 to 2015

Number of foreign trips undertaken by residents of Canada, segmented by purpose of trip, 2011 to 2015 (table)

Destinations of foreign trips undertaken by residents of Canada, 2014

Gross written premiums and policy numbers for travel insurance and assistance in Canada, 2011 to 2015

Gross written premiums and policy numbers for travel insurance and assistance in Canada, 2011 to 2015 (table)

Summary of travel trade, transportation and financial organisations researched in Canada, segmented by type, 2016

Provision rates for stand-alone travel insurance and assistance in Canada, segmented by type of travel trade, transportation and financial organisation, 2016

Operating models used for stand-alone travel insurance and assistance in Canada, segmented by type of travel trade, transportation and financial organisation, 2016

Operating models used for stand-alone travel insurance and assistance in Canada, segmented by type of travel trade, transportation and financial organisation, 2016 (table)

Partnerships with travel trade organisations offering travel insurance and assistance in Canada, 2016: weighted and unweighted competitor share

Partnerships with transportation organisations offering travel insurance and assistance in Canada, 2016: weighted and unweighted competitor share

Partnerships with financial organisations offering travel insurance and assistance in Canada, 2016: weighted and unweighted competitor share

Provision rates for travel insurance and assistance linked to payment cards and bank accounts in Canada segmented by product function and level, and by type of cover

Individual competitors' estimated market shares of gross written premiums and other revenues for stand-alone travel insurance and assistance in Canada, 2016

Individual competitors' estimated market shares of gross written premiums and other revenues for stand-alone travel insurance and assistance in Canada, 2016 (table)

Number of foreign trips undertaken by residents of Canada, segmented by purpose of trip, 2019 (forecast)

Number of foreign trips undertaken by residents of Canada, segmented by purpose of trip, 2019 (forecast) (table)

Gross written premiums and policy numbers for travel insurance and assistance in Canada, 2019 (forecast)

Gross written premiums and policy numbers for travel insurance and assistance in Canada, 2019 (forecast) (table)

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