PRESS RELEASE Travel Insurance and Assistance - Worldwide Series The global market is worth nearly USD 14 billion, and it continues to grow well, although much of its expansion is now being driven by new and emerging markets London, 3 March 2014 - According to research published by Finaccord, the global market for stand-alone travel insurance and assistance (excluding policies linked to credit cards and bank accounts) was worth around USD 13.8 billion in 2013, and this figure is expected to rise to USD 18.1 billion by 2017. However, many of the world's largest and most established travel insurance markets – including a number of European examples, plus the US – are either stalling or declining. "On the other hand, some of the best opportunities for strong and sustained growth are to be found in Latin America and the Asia-Pacific region, where consumer awareness is often low and where the competitive landscape can be fierce", comments Simon Tottman, a consultant at Finaccord. Based on extensive primary research across over 40 individual countries, Finaccord calculates that in 2013 gross written premiums from travel insurance and assistance policies sold on a stand-alone basis were divided regionally as follows: the Americas (34.6%), Europe (33.2%), Asia-Pacific (29.7%) and Africa and the Middle East (2.5%). However, Europe's significance within this global picture is diminishing rapidly, whereas by 2017 the Americas and Asia-Pacific regions are forecast to generate 36.6% and 33.0% of global travel insurance premiums respectively. "This shift is being fuelled by the rapidly-expanding outbound leisure travel sectors of several developing countries, including Argentina, China and India", continues Tottman. The US was still the world's largest travel insurance and assistance market in terms of gross written premiums from stand-alone policy sales in 2013, followed by Canada, the UK, Japan and then Australia. Collectively, these top five markets accounted for almost half of all global premiums. However, by 2017, China will certainly have surpassed Australia in this ranking, and Finaccord also expects the Chinese market to be on a par with those of Japan and the UK by that time. In terms of forecast growth in premiums, Saudi Arabia's market – which is still relatively small in absolute terms – is expected to undergo the most rapid expansion, growing at around 20% per annum in real terms over the next few years. Other high-growth markets include China (17%), Turkey (13%), Indonesia (12%) and Argentina (also 12%). At the opposite end of the growth spectrum, numerous European travel insurance markets (including those of France, Germany and the UK) are expected to continue shrinking in the immediate future, albeit at very marginal rates.

1. PRESS RELEASE
Travel Insurance and Assistance - Worldwide Series
The global market is worth nearly USD 14 billion, and it continues to grow well, although much of
its expansion is now being driven by new and emerging markets
London, 3 March 2014 - According to research published by Finaccord, the global market for
stand-alone travel insurance and assistance (excluding policies linked to credit cards and bank
accounts) was worth around USD 13.8 billion in 2013, and this figure is expected to rise to USD
18.1 billion by 2017. However, many of the world's largest and most established travel insurance
markets – including a number of European examples, plus the US – are either stalling or
declining. "On the other hand, some of the best opportunities for strong and sustained growth
are to be found in Latin America and the Asia-Pacific region, where consumer awareness is
often low and where the competitive landscape can be fierce", comments Simon Tottman, a
consultant at Finaccord.
Based on extensive primary research across over 40 individual countries, Finaccord calculates
that in 2013 gross written premiums from travel insurance and assistance policies sold on a
stand-alone basis were divided regionally as follows: the Americas (34.6%), Europe (33.2%),
Asia-Pacific (29.7%) and Africa and the Middle East (2.5%). However, Europe's significance
within this global picture is diminishing rapidly, whereas by 2017 the Americas and Asia-Pacific
regions are forecast to generate 36.6% and 33.0% of global travel insurance premiums
respectively. "This shift is being fuelled by the rapidly-expanding outbound leisure travel sectors
of several developing countries, including Argentina, China and India", continues Tottman.
The US was still the world's largest travel insurance and assistance market in terms of gross
written premiums from stand-alone policy sales in 2013, followed by Canada, the UK, Japan and
then Australia. Collectively, these top five markets accounted for almost half of all global
premiums. However, by 2017, China will certainly have surpassed Australia in this ranking, and
Finaccord also expects the Chinese market to be on a par with those of Japan and the UK by
that time.
In terms of forecast growth in premiums, Saudi Arabia's market – which is still relatively small in
absolute terms – is expected to undergo the most rapid expansion, growing at around 20% per
annum in real terms over the next few years. Other high-growth markets include China (17%),
Turkey (13%), Indonesia (12%) and Argentina (also 12%). At the opposite end of the growth
spectrum, numerous European travel insurance markets (including those of France, Germany
and the UK) are expected to continue shrinking in the immediate future, albeit at very marginal
rates. "The situation within Europe is an interesting reflection of the evolving shape of this
industry globally, because in every part of the world there are young markets that are thriving
and more mature markets that are stagnating. There is also considerable local and regional
diversity when it comes to consumer awareness, product distribution and the competitive
landscape", concludes Tottman.
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2. Media contact: Roberto Napolitano, +44 (0)20 3008 4406, rnapolitano@finaccord.com
Finaccord is a market research, publishing and consulting company specialising in financial services.
It provides its clients with insight into and information about major issues in financial services in the
UK, Europe and globally, with a particular focus on marketing and distribution topics such as affinity
marketing, bancassurance and strategic alliances.
Finaccord's market research reports and associated databases about travel insurance and
assistance comprise a broad range of multi-country and country-specific studies about the market for
stand-alone travel insurance and assistance in over 40 countries. For all countries covered, five years
of historical data is provided for the number of overseas trips split by purpose (i.e. holiday / leisure or
business) and by destination, for the value of the market for travel cover measured in gross written
premiums, and for the number of travel insurance policies in force segmented between annual
policies and single-trip policies. Forecasts are also provided for each of these data series. In addition,
and based on a representative, primary survey of major travel trade entities, transportation
companies and financial institutions, the leading providers of travel insurance and assistance are
identified, and the importance of other distribution channels is also commented upon.
Sample graphic from the research, showing total gross written premiums and other revenues from
travel insurance and assistance policies sold on a stand-alone basis in 2013, segmented by world
region:
Africa and the
Middle East, 2.8%
Asia-Pacific,
29.2%
Americas, 34.5%
Europe, 33.4%