Friday, 8 March 2013

UK Travel Insurance - February 2013| ResearchMoz.us


ResearchMoz.us include new market research report"Travel Insurance - UK - February 2013 " to its huge collection of research reports.

Despite being an essential product for consumers, purchasing travel insurance is a minefield for consumers; with complicated small print and hundreds of different policies to choose from. The industry should use innovations to make cost savings, simplify products and engage better with consumers.”

Alexander Hiscox, Financial Services Analyst

This report looks in more detail at:

Has the complexity of the travel insurance market led to a lack of consumer trust?
Are young people being ignored within the travel insurance market?
Will the launch of ‘signposting’ make it easier for older customers to get affordable travel insurance?
Is there scope to increase the use of technology in the travel insurance market?

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Introduction
Abbreviations
Executive Summary
The market
Market expected to grow in 2013
Figure 1: Forecast for total value of travel insurance GWP, 2007-17
Channels to market
Figure 2: Channels used to purchase travel insurance, 2008-12
Market factors
Trips to Europe increased, but trips outside Europe fell
Number and cost of claims reduce
‘Signposting’ introduced to help older consumers purchase travel insurance
Companies, brands and innovations
The Post Office brand stands out from the crowd on trust
Figure 3: Attitudes towards and usage of brands operating in the travel insurance sector, November 2012
Who’s innovating?
The consumer
Travel and holiday trends
Figure 4: Holiday destinations, October 2012
Travel insurance ownership
Figure 5: Travel insurance arrangements, October 2012
Travel insurance purchasing behaviour
Figure 6: Travel insurance purchasing, October 2012
Attitudes towards travel insurance
Figure 7: Attitudes towards travel insurance, October 2012
Travel insurance behaviours
Figure 8: Behaviours towards travel insurance, October 2012
What we think
Issues in the Market
Has the complexity of the travel insurance market led to a lack of consumer trust?
Are young people being ignored within the travel insurance market?
Will the launch of ‘signposting’ make it easier for older customers to get affordable travel insurance?
Is there scope to increase the use of technology in the travel insurance market?
Trend Application
Mobile phone apps to appeal to a younger audience
No-claims discounts to encourage greater loyalty
Focusing on the over-55s market will provide potential for growth
Market Drivers
Key points
The financial crisis impacts holiday trends
Figure 9: Domestic vs. overseas holidays, 2005-12
Trips to Europe increase, whilst longer-haul trips continue to decline
Figure 10: Outbound holiday visits, by region visited, 2007-11
Large reduction in the number of claims incurred
Figure 11: Travel insurance claims incurred, by volume and value, 2004-11
Cost per claim of medical expenses
Figure 12: Cost per medical travel insurance claim, 2004-11
Medical expenses are most costly
Figure 13: Number of claims incurred, by type of claim, 2011
‘Signposting’ helps older consumers
Many consumers are ordering an EHIC as an alternative to travel insurance
Going on holiday is seen as a luxury, but a necessary one
Figure 14: Agreement with the statement ‘Holidays are a luxury and holidays are a necessary spend’, October 2012
A fifth of consumers spend spare money on holidays
Figure 15: Trends in what extra money is spent on, December 2009-December 2012
The Pound nudges up against the Euro and Dollar
Figure 16: Spot exchange rates, US Dollar and euro into Pound Sterling, January 2008-November 2012
FSA regulation on selling travel insurance through bank accounts
SWOT Analysis
Figure 17: Travel insurance – SWOT analysis, 2012
Who’s Innovating?
Key points
EHIC app innovation
Confused.com launches new price comparison service for people with pre-existing medical conditions.
First Assist launches Travel Insurance Plus for higher-risk customers
OK to Travel puts no upper age limit on cover
Travel Insurance being offered on cashback websites
Direct Line aims to build brand loyalty through multi-product discounts
Live Chat customer service
Market Size and Forecast
Key points
Number of policies written increases, but GWP remains flat
Figure 18: Volume and value of single-trip and annual policies, 2006-12
Number of annual policies increasing, making up for the decrease in single policy sales
GWP is expected to gradually rise through to 2017
Figure 19: Forecast for total value of travel insurance GWP, 2007-17
Figure 20: Forecast for total market travel insurance GWP, 2007-17
Travel insurance policies are expected to grow at a faster rate
Figure 21: Forecast for total number of travel insurance policies written, 2007-17
Figure 22: Forecast for total market volume for travel insurance policies written, 2007-17
Forecast methodology
Market Share
Key points
AXA still has the largest share of the market
Figure 23: Top ten travel insurance underwriters, by GWP, 2009-11
Aviva, ACE and Ageas all make gains
Direct Line Group loses ground
Companies and Products
Brand Research
Brand map
Figure 24: Attitudes towards and usage of brands operating in the travel insurance sector, November 2012
Correspondence analysis
Brand attitudes
Figure 25: Attitudes, by travel insurance brand, November 2012
Brand personality
Figure 26: Travel insurance brand personality – macro image, November 2012
Figure 27: Travel insurance brand personality – micro image, November 2012
Brand experience
Figure 28: Usage of brands operating in the travel insurance market, November 2012
Figure 29: Satisfaction with various brands operating in the travel insurance market, November 2012
Figure 30: Consideration of brands operating in the travel insurance market, November 2012
Figure 31: Consumer perceptions of current performance for brands operating in the travel insurance market, November 2012
Figure 32: Travel insurance brand recommendation – Net Promoter Score, November 2012
Brand index
Figure 33: Travel insurance brand index, November 2012
Figure 34: Travel insurance brand index vs. recommendation, November 2012
Target group analysis
Figure 35: Target groups, November 2012
Figure 36: Usage of brands operating in the travel insurance market, by target groups, November 2012
Group One – Conformists
Group Two – Simply the Best
Group Three – Shelf Stalkers
Group Four – Habitual Shoppers
Group Five – Individualists
Brand Communication and Promotion
Key points
Adspend increases for the third year in a row
Figure 37: Topline adspend for travel insurance, 2009/10-2011/12
Saga remains the biggest spender
Figure 38: Top ten travel insurance advertisers, 2009/10-2011/12
TV ad expenditure is on the increase
Figure 39: Travel insurance adspend, by media type, 2011/12
Channels to Market
Key points
Direct remains the most popular way to purchase
Figure 40: Channels used to purchase travel insurance, 2008-12
Internet sales continue to increase
Figure 41: Methods used to arrange travel insurance, 2008-12
Travel and Holiday Trends
Key points
Europe is the most popular destination for travellers
Figure 42: Holiday destinations, October 2012
A quarter have not been on holiday in the last twelve months
Figure 43: Responses to the statement ‘I have not been on holiday in the last 12 months’ by current financial situation, October 2012
The young are more likely to travel
Figure 44: Holiday destinations, by age, October 2012
Increase in the number taking more than one holiday
Figure 45: Total number of trips abroad, 2010-12
Travel Insurance Ownership
Key points
Most people want cover when they travel abroad
Figure 46: Travel insurance arrangements, October 2012
Nearly 50% of overseas travellers have annual travel insurance cover
Figure 47: Travel insurance arrangements, October 2012
Affluent go for annual policies, whilst middle incomes go for single-trip cover
Figure 48: Travel insurance arrangements, by household income, October 2012
Younger consumers are less likely to have travel insurance
Figure 49: Travel Insurance arrangements, by demographics, October 2012
Arranging Travel Insurance
Key point
Online is the most popular way to purchase
Figure 50: Channels used to arrange cover, October 2012
Offline channels are still important for purchasing insurance
Figure 51: Channels used to arrange cover, by age group October 2012
Travel Insurance Purchasing Considerations
Key points
Medical expenses are consumers biggest consideration
Figure 52: Travel insurance purchasing considerations, October 2012
People don’t talk about travel insurance
The trade-off between price and brand
Figure 53: Travel insurance purchasing considerations, by age, October 2012
Travel Insurance Behaviours
Key points
Shopping around for travel insurance
Figure 54: Behaviours towards travel insurance, October 2012
Complex terms and conditions
One in five choose to rely on the EHIC
Attitudes towards Travel Insurance
Key points
Consumers see the value of travel insurance
Figure 55: Attitudes towards travel insurance, October 2012
Travel insurance is essential to the holiday experience
Everyone wants quality of cover
Figure 56: Agreement with statement ‘It is important to look at the quality of cover, and not just focus on price’, by age, October 2012
Travel insurance still generally seen as expensive
Figure 57: Agreement with statement ‘Some travel insurance policies are far too expensive’, by age and working status, October 2012
Consumers face policy confusion
Can travel insurers be trusted to pay out on a claim?
Figure 58: Agreement with statement ‘I do not trust insurers to pay out on travel insurance claims’ , October 2012
Attitudes vary depending on purchasing method
Figure 59: Attitudes towards travel insurance, by travel insurance purchasing, October 2012
Appendix – Market Drivers
Domestic vs overseas holidays, 2005-12
Figure 60: Domestic vs. overseas holidays, 2005-12
Appendix – Market Size and Forecast
Total value of travel insurance
Figure 61: Forecast for total market travel insurance GWP, 2007-17
Total volume of travel insurance
Figure 62: Forecast for total market volume for travel insurance policies written, 2007-17
Value of annual travel insurance
Figure 63: Forecast for value of annual travel insurance GWP, 2007-17
Figure 64: Forecast for value of annual travel insurance GWP, 2007-17
Figure 65: Best- and worst-case forecast for annual travel insurance GWP, 2012-17
Volume of annual travel insurance
Figure 66: Forecast for annual travel insurance policies written, 2007-17
Figure 67: Forecast for total annual travel insurance policies written, 2007-17
Figure 68: Best- and worst-case forecast for annual travel insurance policies written, 2012-17
Value of single-trip travel insurance
Figure 69: Forecast for value of single-trip travel insurance GWP, 2007-17
Figure 70: Forecast for value of single-trip travel insurance GWP, 2007-17
Figure 71: Best- and worst-case forecast for single-trip travel insurance GWP, 2012-17
Volume of single-trip travel insurance
Figure 72: Forecast for single-trip travel insurance policies written, 2007-17
Figure 73: Forecast for single-trip travel insurance policies written, 2007-17
Figure 74: l Best- and worst-case forecast for single-trip travel insurance policies written, 2012-17
Appendix – Brand Research
Figure 75: Brand usage, November 2012
Figure 76: Brand usage, November 2012 (continued)
Figure 77: Brand commitment, November 2012
Figure 78: Brand commitment, November 2012 (continued)
Figure 79: Brand momentum, November 2012
Figure 80: Brand momentum, November 2012 (continued)
Figure 81: Brand diversity, November 2012
Figure 82: Brand diversity, November 2012 (continued)
Figure 83: Brand satisfaction, November 2012
Figure 84: Brand satisfaction, November 2012 (continued)
Figure 85: Brand recommendation, November 2012
Figure 86: Brand recommendation, November 2012 (continued)
Figure 87: Brand attitude, November 2012
Figure 88: Brand attitude, November 2012 (continued)
Figure 89: Brand image – macro image, November 2012
Figure 90: Brand image – macro image, November 2012 (continued)
Figure 91: Brand image – micro image, November 2012
Figure 92: Brand image – micro image, November 2012 (continued)
Figure 93: Profile of target groups, by demographics, November 2012
Figure 94: Psychographic segmentation, by target groups, November 2012
Figure 95: Brand usage, by target groups, November 2012
Brand index
Figure 96: Brand index, November 2012

Appendix – Travel and Holiday Trends
Figure 97: Most popular holiday destinations, by demographics, October 2012
Figure 98: Next most popular holiday destinations, by demographics, October 2012
Figure 99: Most popular types of holiday taken, by demographics, October 2012
Figure 100: Next most popular types of holiday taken, by demographics, October 2012
Figure 101: Other types of holiday taken, by demographics, October 2012
Figure 102: Least popular types of holiday taken, by demographics, October 2012
Appendix – Travel Insurance Ownership
Figure 103: Most popular travel insurance arrangements, by demographics, October 2012
Figure 104: Most popular travel insurance arrangements, by demographics, October 2012
Appendix – Arranging Travel Insurance
Figure 105: Travel insurance purchasing, by demographics, October 2012
Appendix – Travel Insurance Purchasing Considerations
Figure 106: Most popular travel insurance purchasing considerations, by demographics, October 2012
Figure 107: Next most popular travel insurance purchasing considerations, by demographics, October 2012
Figure 108: Other travel insurance purchasing considerations, by demographics, October 2012
Appendix – Travel Insurance Behaviours
Figure 109: Most popular attitudes and behaviours towards travel insurance, by demographics, October 2012
Figure 110: Next most popular attitudes and behaviours towards travel insurance, by demographics, October 2012
Appendix – Attitudes towards Travel Insurance
Figure 111: Agreement with the statements ‘It is important to look at the quality of cover, and not just focus on price’ and ‘It’s essential to have travel insurance when you go abroad’, by demographics, October 2012
Figure 112: Agreement with the statements ‘Travel insurance gives me peace of mind for my holiday’ and ‘Some travel insurance policies are far too expensive’, by demographics, October 2012
Figure 113: Agreement with the statements ‘Travel insurance policies have too many exclusions and too much small print’ and ‘There are so many travel insurance products on the market it’s difficult to find the right policy’, by demographics, October 2012
Figure 114: Agreement with the statements ‘I do not trust insurers to pay out on travel insurance claims’ and ‘Travel insurance is an unnecessary expense’, by demographics, October 2012
Figure 115: Agreement with the statement ‘All travel insurance policies are the same’, by demographics, October 2012

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