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Travel Insurance and Assistance in the USA

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 270 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

Growth in the number of outbound trips accelerated in 2014 and 2015…

... with business trips staging a recovery from the trough reached in 2013

Over a half of all overnight trips are to either Canada or Mexico…

Market for travel insurance and assistance

The market has risen rapidly in terms of both premiums and policies in force

Annual, multi-trip policies represent a small but stable proportion of the total market

Distribution through travel trade, transportation and financial organisations

Summary of organisations researched

Provision rates

Well over a half of potential distributors in the US actually do promote stand-alone travel cover

Operating models

Most distribution partnerships are arranged via a single external underwriter or multiple ones

Several insurance brands distribute travel insurance as a white-labelled product

Competitor share of partnerships – travel trade entities

Allianz Global Assistance and Travel Guard hold the most distribution relationships in this sector

Transamerica is also significant, thanks to its links with Aon Affinity and Travelex Insurance Services…

…and a wide range of other insurers also involved in this diverse sector

In weighted terms, two competing units potentially account for over a half of this market…

… buoyed in particular by relationships with major online travel firms and cruise companies

Competitor share of partnerships – transportation organisations

Allianz Global Assistance and Travel Guard are most active in partnering with US airlines…

…although significant international airlines work with a wider range of insurers

One provider is dominant in the weighted analysis of partnerships

Competitor share of partnerships – financial organisations

Only two insurers have more than one distribution relationship among financial partners…

… with Travel Insured International likely to hold the most significant one

Travel insurance and assistance linked to payment cards and bank accounts

Around two thirds of credit card products feature one or more types of travel cover…

… rising to well over 80% in the case of premium products

Other distribution channels

Alternative distribution channels for travel cover are likely to be rising in importance in the US

Automotive clubs

Automotive clubs constitute a major distribution channel for travel insurance

Direct distribution by specialist travel insurers

The US market features a particularly high number of specialists selling policies directly…

…including some that focus on assistance packages

Online aggregators and brokers

Travel insurance comparisons are available in the US from specialist brands

Retailers

Costco operates a travel company for its members

Other types of distributor

USAA distributes travel insurance to US military personnel and family members

Leading competitors

Four competitors are likely to hold a share of 10% or more of the US market…

… with ones outside of the top ten holding between 11% and 20% when considered together

Forecasts

Underlying foreign travel market

Foreign trips will carry on growing up to 2019 although at a slower rate than in 2014 and 2015…

Market for travel insurance and assistance

… which means that the travel insurance market will continue to expand

 

LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY

Key market data for travel insurance and assistance in the US, 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 the US, segmented by purpose of trip, 2011 to 2015

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

Destinations of foreign trips undertaken by residents of the US, 2014

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

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

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

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

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

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

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

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

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

Provision rates for travel insurance and assistance linked to payment cards and bank accounts in the US 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 the US, 2016

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

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

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

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

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

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