Global Travel Insurance(旅行保险) Industry 2016 Market Research 目录.docx

Global Travel Insurance Industry 2016 Market Research ReportChapters1 Industry Overview1.1 Basic Information of Travel Insurance1.1.1 Definition of Travel InsuranceTravel insurance is a product focused on protecting policyholders against specified losses, accidents or other adverse events, which may occur before or during travel. Examples include trip cancellation/interruption, overseas medical expenses for injury or illness, theft of valuables, and baggage delay or damage. Many travel insurance policies also include the provision of emergency medical assistance services, such as call center operating 24 hours, seven days a week, and an international network of specialist health care providers.There are standard general exclusions and invalidations on most types of travel insurance policies (for example, selfinicted injury, acts of terrorism, nonapproved preexisting medical conditions, “dangerous” or extreme activities, and policyholders being under the inuence of alcohol or drugs)1.1.2 Classifications of Travel InsuranceTable Classifications of Travel InsuranceClassificationMedical expenseMedical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of disease in the tourism.Trip CancellationTrip Cancellation are the costs that trip is cancelled or interrupted due to covered reasons like severe illness or weather etc.Trip DelayTrip Delay coverage when traveler incurs expenses due to minimum delays traveling to or from the destination.Property DamageProperty Damage coverage when travelers property are lost or damaged by some reasons.OtherOther insurance covers other risk, such as death, disability etc.Source: QYR Tourism Research Center, Nov 20161.1.3 Applications of Travel InsuranceTable Applications of Travel InsuranceApplicationDomestic travelOutbound travelSource: QYR Tourism Research Center, Nov 2016It also can be classificated as single trip, annual trip insurance policies range from Single trip cover for 1 to 94 days; Annual multi-trip cover for frequent travel with a choice of 31, 45 or 62 days per trip; Longstay cover for 4 to 18 months.Travel insurance is primarily driven by outbound travel (as opposed to domestic travel) as individuals typically have domestic health and general insurance cover for domestic travel risks. The travel insurance premium an individual pays is typically based on a number of factors including the type of cover requested, the destination of travel, the length of stay, the cost of travel, the age of the insured, the commission taken by the distribution channel, and any preexisting medical conditions.1.1.4 Characteristics of Travel InsuranceTravel insurance can be purchased from travel agents, travel suppliers (airlines, hotels, cruise lines, tour operators) a private insurance firm, insurance brokers, or online.The characteristics of fine travel insurance unit of measurement as follow:1.2 Development Overview of Travel Insurance1.3 Enter Barriers Analysis of Travel InsuranceThe barriers to entry of Travel Insurance industry are: economies of scale, capital reserves, industry characteristics, regulatory conditions, legal barriers, precipitating costs, market capacity, and consumer preferences.2 Travel Insurance International and China Market Analysis2.1 Travel Insurance Industry International Market Analysis2.1.1 Travel Insurance International Market Development HistoryEver since travel insurance was introduced in 19 century, travel insurance industry has a history of more than 100 years. The table below displays the history of travel insurance.Table History of Travel InsuranceYearEvent1864The first travel insurance policy was sold in 1864 in the USA by the Travellers Insurance Company.Before mid-20th CenturyTravel insurance was seen as an addition to Personal Accident Cover and very few standalone travel insurance policies were sold.1960Travel insurance cover for 2 weeks in Europe cost about 1.1978Travel insurers introduced the first travel insurance cover for industrial action; it was designed to cover delays due to strike at airports.By the mid-80sThe majority of travel insurance policies were sold through travel agents.2001After 911 incidents, the sale of travel insurance began to shoot up throughout the US and the world.From 2001 to nowTravel insurance kept growing in a fast pace. More and more travelers choose travel insurance before they began their tours.Source: QYR Tourism Research Center, Nov 20162.1.2 Travel Insurance Competitive Landscape AnalysisAt present, the US is the worlds largest travel insurance and assistance market based on gross written premiums from stand-alone policy sales, followed by Canada, the UK, Japan and Australia. Collectively, these top five markets accounted for almost half of all global premiums.International travel insurance products are typically sold by large domestic and international insurers, who sell a range of insurance products across dierent classes, such as life and nonlife insurance, and who directly underwrite the insurance risk and sell it directly or through the same or competing distribution channels. The market is competitive, with providers typically competing based on: Policy coverage and exclusions; Price; Relationships with distribution partners, including exclusivity, commission or profit sharing arrangements, and technology platform and integration; and Increasingly, the ability to oer and price travel insurance policies online directly and or on behalf of distribution partners.2.1.3 Travel Insurance International Main Countries Development StatusThe market in AmericansAmericans remain strongly interested in the coverage and protection offered by travel insurance, with more than 150 million Americans covered by travel protection in 2015 through a variety of travel-related protection and emergency service products, including through credit cards and affinity groups. Of Americans who voiced more concern about traveling because of world events, nearly half (45%) said they were more likely to purchase travel insurance. In this group, those in the 18 34 year old range, for the third consecutive year, were the most likely to purchase travel insurance (56%).Among those most likely to purchase travel insurance, the types of coverage that interested them most were for medical and cancellation (77% and 74% respectively), followed by travel interruptions or delays (72%), and emergency medical evacuation coverage (65%). Also, 67% of Americans expressed interest in travel assistance services.The market in AustraliaAustralia has a large share of the Asia Pacifc travel insurance market, relative to its population, due to the higher propensity for individuals to travel abroad for further distances and longer periods of time. This means travelers are likely to incur higher travel expenses, and have an awareness of potential risks associated with travel. Over the past ten years, the Australian travel insurance market has grown at a CAGR of 9%, based on gross written premium (GWP).The market in IndiaTravel insurance is expected to grow rapidly in the developing markets, including India and China, as individual wealth rises and international travel grows. Over the past ten years, the Indian market has grown at a CAGR of 18%, based on gross written premium (GWP). The travel insurance market is de-commoditising as beneft levels increase and penetration rates grow. The retail channel in India is strongest though online travel agents, banks and airlines are increasing share of distribution. In India, the largest providers of travel insurance include TataAIG, BajajAllianz and ICICILombard.Figure 2015 Global Premium Revenue Share of Travel Insurance by Regions Source: QYR Tourism Research Center, Nov 20162.1.4 Travel Insurance International Market Development TrendThe travel insurance industry throughout the world, particularly the US, was growing steadily since the early 20th century, but the growth was rather slow compared to other types of insurance. The turning point in the history of travel insurance policy was the 9/11 incident. It was after this horrendous event that the sale of travel insurance began to shoot up throughout the US and the world. Prior to the World Trade Center (WTC) attacks, about 10% of Americans had travel insurance, but after the incident, the percentage increased to 30% in a span of just a couple years.Travel insurance companies of today offer different types of insurance policies for different people. Some popular travel insurance policies provide coverage for business travel, student travel, leisure travel, and international travel. Trip cancellation, accidental death, overseas funeral expenses, medical expenses, theft of personal possessions, curtailment and legal assistance are some of the typical risks covered by travel insurance policies.Many travelers are aware of the advantages of purchasing travel insurance. The number of global travelers is ever on the increase, and the risks of travel are on the increase as well. That is why more travelers are purchasing travel insurance. As a result, the travel insurance industry is expanding at an exponential rate.Now, a new trend is the onlineinsurance. The Internet has prompted some of the most dramatic changes in the history of travel insurance. While travel insurance buyers used to need agents to find policies, they can know price their own policies online. This has led to a boom for the industry, which has driven down the cost of insurance on average. Buyers can also easily compare policies online to keep their insurance premiums down to an affordable level. Its less expensive than ever to buy insurance, which makes it a more affordable purchase and a better value overall. In the next decade, the benefits of travel insurance will expand, and by checking prices online, buyers can continue to pay low prices for great peace of mind while traveling.In general, the overall key driver of travel insurance sales is growth in the outbound travel market. The global rise of various budget services e.g. airlines and accommodation has helped to make travelling overseas and domestically more aordable. In addition, global travel volumes have been further encouraged through increased passenger capacity.2.2 Travel Insurance Industry China Market Analysis2.2.1 Travel Insurance China Market Development History2.2.2 Travel Insurance Competitive Landscape AnalysisOver the past ten years, the Chinese markets have grown at a CAGR of 23%, based on gross written premium (GWP). As shown in the following figure, the Chinese market is still dominated by large local Chinese insurers. Currently, Chinese travel insurance policies are typically focused on accidental death and disability products rather than travel “specialty” products such as delay, cancellation or medical expenses. As a result, travel insurance policies tend to be lower value purchases. As the Chinese market matures, demand for “specialty” products is expected to increase, creating opportunities for a specialist travel insurer.2.2.3 Travel Insurance China Main Regions Development Status2.2.4 Travel Insurance China Market Development TrendThe development trend of Chinese travel insurance market includes:(a)Growth will continue to be driven by outbound travel volumes which in turn is driven by the wealth eect i.e. the increasing wealth of Chinas middle class.(b)While travel insurance penetration rates and average premium values are still low in China, there is little doubt about the development trends that will continue to inuence these factors.(c) Stand-alone travel insurance policies sold are expected to rise at a double-digit growth.(d)The traditional retail channel is strong in China though online travel agents (OTAs), such as Qunar and Ctrip, and airlines are increasing their share of distribution.2.3 Travel Insurance International and China Market Comparison AnalysisIn addition, in China the period of time between the sale of the policy and the time of the claim being incurred is typically short, given that travel insurance is often purchased shortly prior to the date of commencing travel, and generally covers a specific travel period rather than a 12 month period. This is dierent to some oshore markets, such as the UK, where products are more commonly sold on an annual basis, and often bundled with other general insurance products. This is not as common in China given the dierent nature of Chinese outbound travel, which tends to be for longer, higher value trips, versus a market such as the UK, which tends to be short duration or weekend length European trips with higher frequency. This proximity of the policy sale to claims experience allows travel insurers in such markets as China to adjust their pricing dynamically for market changes (such as foreign exchange volatility) to their underlying claims risks experience.Con