A. Leach - Itic presentation, 18-06-14

© Finaccord Ltd., 2014 Web: www.finaccord.com, E-mail: info@finaccord.com
Travel Insurance in the Asia-Pacific Region and Global Trends in Consumer Behaviour
1
Travel Insurance in the Asia-
Pacific Region and Global Trends
in Consumer Behaviour
ITIC Asia-Pacific International Travel
and Health Insurance Conference
18th June 2014

2
Travel Insurance in the Asia-Pacific Region
- Analysis mainly from Travel Insurance and Assistance in the Asia-Pacific Region
market research report released in November 2013;
- coverage of Australia, China, Hong Kong, India, Indonesia, Japan, New Zealand,
Singapore, South Korea and Taiwan.

3
Travel insurance and assistance GWP in the
Asia-Pacific Region in a global context, 2013
Americas, 34.5%
Europe, 33.4%
Asia-Pacific,
29.2%
Africa and the
Middle East, 2.8%
Source: Finaccord Travel Insurance and Assistance reports
Global market value
= USD 13.8 billion

4
Number of overseas trips from China and other
countries in the Asia-Pacific Region, 2008 to 2012
0
50
100
150
200
250
Source: Finaccord Travel Insurance and Assistance in the Asia-Pacific Region report
million
2008 2009 2010 2011 2012
Other countries: CAGR = 3.9%
China: CAGR = 16.1%
162.1 161.4
182.7
199.4
218.8 Total: CAGR = 7.8%

5
Market for travel insurance and assistance
in the Asia-Pacific region, 2008 to 2012
0
1
2
3
4
5
0
20
40
60
80
100
2008 2009 2010 2011 2012
Single-trip policies Annual policies GWP
Policies (million) GWP (USD billion)
GWP, 2012 = USD 3.63 billion
No. single-trip policies, 2012 = 77.75 million
No. annual policies = 12.13 million

6
Market for travel insurance and assistance in
China and other countries in the Asia-Pacific
region, 2008 to 2012 : number of policies
million
2008 2009 2010 2011 2012
China: CAGR = 22.4%
64.7 65.8
74.1
81.6
89.9 Total: CAGR = 8.6%
0
20
40
60
80
100

7
region, 2008 to 2012 : gross written premiums
USD billion
2008 2009 2010 2011 2012
China: CAGR = 25.7%
2.60 2.65
2.87
3.28
3.63 Total: CAGR = 8.7%
0
1
2
3
4

8
Key providers in travel insurance and assistance in
the Asia-Pacific region: share of partnerships of travel
trade, transportation and financial organisations
AIG, 16.3%
Allianz, 8.2%
ACE, 6.3%
Munich Re, 4.8%
Tokio Marine
Holdings, 3.6%
Government of
India, 3.5%
China Pacific
Insurance
Company, 3.0%
Bajaj Finserv,
2.9%
Ping An
Insurance
Company of
China, 2.9%
Dongbu Group,
2.8%
other, 45.5%

9
Number of overseas trips from China and other
countries in the Asia-Pacific Region, 2012 and 2016
China: CAGR = 14.9%
Total: CAGR = 8.7%
0
100
200
300
400
2016
million
2012
218.8
304.9

10
region, 2012 and 2016: number of policies
million
China: CAGR = 17.1%
Total: CAGR = 8.6%
20162012
89.9
124.9
0
50
100
150

11
region, 2012 and 2016: gross written premiums
USD billion
China: CAGR = 20.7%
Total: CAGR = 9.6%
0
1
2
3
4
5
6
20162012
3.63
5.24

12
- Analysis from Travel Metrics consumer research reports to be released in July 2014;
- coverage of Australia, Canada, France, Germany, Italy, Spain, UK and US;
- 1,000 consumers surveyed in first seven countries, 2,000 in the US;
- results show unweighted averages across all eight countries plus maximum values
recorded in any single country.
Global Trends in Consumer Behaviour

13
Consumer propensity to travel abroad or
within own country for a week or more, 2014
Source: Finaccord Travel Metrics reports for Australia, Canada, France, Germany, Italy, Spain, UK and USA
Abroad only (for any period) – 14.2%
(maximum value: Canada – 31.6%)
Own country only (for a week or more) – 22.3%
(maximum value: Australia – 30.1%)
Both abroad (for any period) and in own
country (for a week or more) – 35.0%
(maximum value: Germany – 53.2%)
No – 28.5%
(maximum value: US – 54.7%)

14
Propensity of consumers travelling
abroad to acquire travel insurance, 2014
Yes – 69.2%
(maximum value: UK – 89.7%)
No – 30.8%

15
Types of travel insurance acquired by
all travelling consumers, 2014 (1)
Note - analysis includes some travellers with more than one kind of policy
Single-trip policy – 46.6%
Annual policy – 20.5%
Automatic policy in price of
holiday or travel ticket – 14.1%
(maximum value: Italy – 27.9%)
Automatic policy with credit card
or bank account – 18.8%
(maximum value: France – 47.2%)

16
Types of travel insurance acquired by
all travelling consumers, 2014 (2)
Note – non-standard consumer policies include specialist backpacker, domestic-only, expatriate, gap-year or student, older
traveller, pre-existing medical condition and winter sports policies
Standard consumer policy – 79.5%
Business policy – 4.0%
(maximum value: Spain – 5.9%)
Non-standard consumer policy – 16.6%
(maximum value: UK – 28.5%)

17
Distribution channels used to acquire
stand-alone travel insurance, 2014
Direct from insurer – 38.7%
Airline – 14.0%
Bank – 7.4%
other – 20.2%
Travel agent or tour operator – 19.7%
(maximum value: Italy – 27.3%)
Note – other distribution channels include automotive associations, cashback websites, employers, insurance aggregators,
insurance brokers, the Post Office, and supermarkets or other retailers

18
Distribution interfaces used to acquire
stand-alone travel insurance, 2014
Face-to-face – 36.3%
Online – 52.5%
Phone or post – 11.2%

19
Devices used to acquire stand-alone
travel insurance online, 2014
Laptop / desktop – 88.7%
Tablet – 8.2%
Mobile phone – 3.0%

20
Cover penetration rates for travel insurance
acquired by all travelling consumers, 2014
% of insured travellers with cover for risk
46.7% (maximum value: Australia – 63.7%)
33.8% (maximum value: UK – 52.6%)
69.2% (maximum value: Canada – 75.9%)
0% 20% 40% 60% 80% 100%
Accidents incurred while travelling
Assistance in the event of personal or medical emergencies
experienced by you and / or other travelling family members
Assistance in the event of personal or medical emergencies
experienced by family members remaining at home
Bankruptcy of a scheduled airline
Flight or trip delay
Loss, stolen or damaged baggage or belongings
Medical expenses incurred while travelling
Personal liability
Trip cancellation, postponement or interruption

21
Any questions?

Finaccord is a leading market research, publishing and consulting company specialising in financial
services. We provide our clients with insight with a particular focus on marketing and distribution
strategies, including affinity and partnership marketing.
Our areas of expertise include: affinity and partnership marketing; automotive financial services;
bancassurance; commercial non-life insurance brokers; consumer intelligence; extended warranties
and insurance for white, brown and grey goods; home emergency insurance and assistance;
insurance and assistance linked to payment cards and bank accounts; mobile gadget and phone
insurance; professional indemnity insurance; retailer payments, banking, insurance and assistance;
road assistance; small business insurance; trade credit insurance; and travel insurance and
assistance.
Our international network of consultants is able to deliver information quickly and accurately across a
range of countries worldwide, basing research projects on robust data and knowledge.
Contact us
The Office Farringdon
24 Greville Street
London,
EC1N 8SS
Phone: +44 20 3178 2556
Fax: +44 20 7198 7902
Email: info@finaccord.com
www.finaccord.com
22

A. Leach - Itic presentation, 18-06-14

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A. Leach - Itic presentation, 18-06-14