Table of Contents
Issues in the Market
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- Key issues
- Abbreviations
Insights and Opportunities
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- Self-service insurance terminals
- Travel company insurance phone booth
- Banks’ ATM travel insurance service
- Consumer needs-based marketing
- Flexible options
Market in Brief
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- Market growth
- Changing purchasing habits, changing distribution channels
- Focus on price leaves consumers in the dark…
- …and innovation is at a premium
- Red tape
- Holiday patterns favour annual policies
- Consumer research findings: Holiday habits
- Consumer research findings: Insurance ownership
- Consumer research findings: Attitudes towards travel insurance
Fast Forward Trends
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- Over-Optioned Consumers
- What's it about?
- What we've seen
- What’s next
- Cool Vending
- What's it about?
- What we've seen
- What’s next
Internal Market Environment
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- Key Points
- FSA regulation…
- …extends to the whole market
- Trust still an issue…
- …with growing numbers of complaints
- Aggregator push…
- …leads to concerns over regulation
- Addressing discrimination
- Holiday market presses on
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- Figure 1: Domestic and overseas holidays volume, 2002-07
- Life is a journey
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- Figure 2: Outbound holiday visits, by region visited, 2001-06 (Number of visits abroad from UK)
- Friends reunited
- Paying for pleasure
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- Figure 3: Domestic and overseas holidays expenditure, 2002-07
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- Figure 4: Average spend per trip, 2002-07
- Changing booking methods
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- Figure 5: Inclusive holidays versus independent holidays, by volume, 2001-06
- Free cover undermining sales
Broader Market Environment
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- Key Points
- Credit crunch – putting the brakes on consumer spending?
- Holiday spend is the top priority
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- Figure 6: UK spending priorities, January 2007
- Healthy PDI
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- Figure 7: PDI and consumer expenditure, at constant 2002 prices, 2002-12
- Figure 8: Trends in personal disposable income and consumer expenditure, 2002-12
- Population changes
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- Figure 9: Forecast adult population trends, by socio-economic group, 2002-12
- Lucrative market among older travellers
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- Figure 10: Forecast adult population trends, by lifestage, 2002-12
- CSR – limited development in the wider insurance sector…
- …and even less in travel insurance
- Scope for change
- ClimateWise should further drive CSR efforts
Competitive Context
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- Key Points
- European Health Insurance Card
- Added-value accounts
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key Points
- CSR – creating a green travel industry…
- …but plenty of scope for further innovation
- Back-office technology
- Regulation driving innovation
- Premium pensioners
- The final frontier
Trade Perspective
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- How will FSA regulations on CTI affect the industry?
- What is your view on travel insurance aggregators?
- What’s the greatest challenge for the industry?
Market Size and Forecast
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- Key Points
- Market growth
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- Figure 11: Travel insurance market size, by gross written premiums, 1998-2008
- Shrinking margins
- Forecast
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- Figure 12: Travel insurance market size, by gross written premiums, 2002-12
- Factors used in the forecast
Segment Performance
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- Key Points
- Continued trend to annual policies
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- Figure 13: Travel insurance segment performace, 1999-2008
- Holiday patterns move away from single-trip policies
Market Share
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- Key Points
- Norwich Union makes progress
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- Figure 14: Estimated travel insurance market share, 2007
- Further concentration likely
Companies and Products
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- AXA
- Norwich Union
- AIG/New Hampshire
- UKI
- Fortis Insurance
Brand Elements
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- Brand map
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- Figure 15: Attitudes and usage of travel insurance brands, January 2008
- The Post Office
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 16: Attitudes towards the Post Office brand, January 2008
- First Choice
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 17: Attitudes towards the First Choice brand, January 2008
- Thomas Cook
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 18: Attitudes towards the Thomas Cook brand, January 2008
- Norwich Union
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 19: Attitudes towards the Norwich Union brand, January 2008
- Saga
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 20: Attitudes towards the Saga brand, January 2008
- HSBC
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 21: Attitudes towards the HSBC brand, January 2008
- Brand qualities of travel insurance brands
- The Post Office leads the way
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- Figure 22: Consumer attitudes towards various travel insurance brands, January 2008
- Experience of travel insurance brands
- Post Office is most popular
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- Figure 23: Consumer usage of various travel insurance brands, January 2008
- Saga and HSBC low on the list of preferred brands.
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- Figure 24: Consideration of various travel insurance brands, January 2008
- Brand momentum for travel insurance brands
- The Post Office is gaining most ground.
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- Figure 25: Momentum of various travel insurance brands, January 2008
- Four fifths of the Post Office’s customers happy
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- Figure 26: Customer satisfaction with various travel insurance brands, January 2008
- Brand commitment to travel insurance brands
- First Choice? Not necessarily
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- Figure 27: Consumer commitment to various travel insurance brands, January 2008
- Round up
Brand Communication and Promotion
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- Key Points
- Advertising spend
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- Figure 28: Travel insurance adspend, 2003-07
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- Figure 29: Travel insurance adspend, by provider, 2003-07
- Direct mail key to advertising success
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- Figure 30: Travel insurance adspend, by outlet type, Year to October 2007
- Marketing themes
- Focus on price
- Importance of medical cover
- Link promotions
- CSR and the new puritans
Channels to Market
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- Key Points
- Travel agents continue to lose market share
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- Figure 31: Source used to obtain last policy, 2003-08
- Will travel agents’ share freefall?
- Free cover steps up
- High street expansion
- Aggregators enter on a high
The Consumer – Holiday Trends
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- Key Points
- Two thirds of adult holidaymakers have taken an overseas trip
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- Figure 32: Holidays taken in the past 12 months, October 2007
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- Figure 33: Holiday habits, by type of holiday, October 2007
- Europe family boundaries
- Third agers kick back
- Young global community
- Staying closer to home
- Booking behaviour
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- Figure 34: Type of holiday taken in the past 12 months, October 2007
- Southern independence
- Holiday frequency
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- Figure 35: Total holidays taken in the past 12 months, October 2007
- Future intentions
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- Figure 36: Future holiday intentions, October 2007
The Consumer – Travel Insurance Usage
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- Key Points
- Coverage reaching saturation point?
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- Figure 37: Travel insurance ownership, October 2007
- Youngsters shunning insurance?
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- Figure 38: Adults who have taken a holiday in the past 12 months, by lifestage and Mintel’s Special Groups, October 2007
- Short or long, European or further flung, insurance is still key
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- Figure 39: Travel insurance ownership, by type of holiday taken, October 2007
- Annual policies reaching a peak?
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- Figure 40: Type of policy held, October 2007
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- Figure 41: Type of policy held, 1999-2007
- North/south divide
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- Figure 42: Annual travel policyholders, by region and socio-economic group, October 2007
- Source of most recent policy
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- Figure 43: Source used to obtain last policy, 2003-08
- Travel agents continue to lose travel insurance business
- Internet sales driven by professional couples
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- Figure 44: Detailed breakdown of purchasing channels, October 2007
- Retired comfortable with traditional channels
- Free cover for upmarket families
The Consumer– Attitudes towards Travel Insurance
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- Key Points
- Protecting health is the key driver
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- Figure 45: Attitudes towards travel insurance, October 2007
- Importance of cover grows with age
- Shopping around
- Short breaks, budget cover
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- Figure 46: Attitudes towards travel insurance, by holidays taken in the last year, October 2007
- Cautious single-trip policyholders
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- Figure 47: Attitudes towards travel insurance, by type of policy, October 2007
- Cutting the cost
- Travel agents’ convenience
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- Figure 48: Attitudes towards travel insurance, by source of policy, October 2007
- Travel insurance target groups
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- Figure 49: Segmentation of groups based on their attitudes towards travel insurance, October 2007
- Group 1: All Year Insurers (11% of the sample, equivalent to 6 million UK adults aged 16+)
- Group 2: Price Sensitive (28% of the sample, equivalent to 14 million UK adults aged 16+)
- Group 3: Medical Cover Seekers (17% of the sample, equivalent to 9 million UK adults aged 16+)
- Group 4: Only with Holidays (8% of the sample, equivalent to 4 million UK adults aged 16+)
- Group 5: Non-holidayers/Inactives (36% of the sample, equivalent to 18 million UK adults aged 16+)
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- Figure 50: Attitudes towards travel insurance, by target group, October 2007
- Scope for a hard sell on medical cover?
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- Figure 51: Holiday habits and travel insurance purchasing, by target group, October 2007
Appendix – Holiday Trends: Detailed Demographics
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- Figure 52: Most popular holidays taken in the past 12 months, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, household income, tenure, region, ACORN category, media usage and supermarket usage, October 2007
- Figure 53: Further holidays taken in the past 12 months, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, household income, tenure, region, ACORN category, media usage and supermarket usage, October 2007
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Appendix – Travel Insurance Usage: Detailed Demographics
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- Figure 54: Travel insurance ownership, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, household income, tenure, region, ACORN category, media usage and supermarket usage, October 2007
- Figure 55: Source used to obtain last policy, by gender, age, socio-economic group, marital status, lifestage, Mintel’s Special Groups, working status, household income, tenure, region, ACORN category, media usage and supermarket usage, October 2007
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Appendix – Attitudes Towards Travel Insurance: Detailed Demographics
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- Figure 56: Most popular attitudes towards travel insurance, gender, age, socio-economic group, marital status, lifestage, Mintel’s Special Groups, working status, household income, tenure, region, media usage and supermarket usage, October 2007
- Figure 57: Next most popular attitudes towards travel insurance, by gender, age, socio-economic group, marital status, lifestage, Mintel’s Special Groups, working status, household income, tenure, region, media usage and supermarket usage, October 2007
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Appendix – Target Group Demographics
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- Figure 58: Target group demographics, by gender, age, social grade, lifestage, income, tenure, ACORN group, and commercial TV viewing, October 2007
- Figure 59: Target group demographics, by marital status, children in household, Special Groups, working status, region, newpaper readership, media usage, and supermarket usage, October 2007
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