Travel Insurance in Australia - Industry Research Report

Taking flight: Profitability and revenue will recover as demand returns to pre-pandemic conditions

Before the COVID-19 pandemic, the number of Australians travelling overseas supported the Travel Insurance industry. Early in the past five-year period, financial markets' performance and consumers' tendency to take up travel insurance products supported industry operators. While the number of Australians travelling overseas grew consistently before the COVID-19 pandemic, the number of international departures declined significantly over the two years through 2020-21, due to travel bans that the Federal Government imposed. Overall, industry revenue is expected to decline at an annualised 7.2% over the five years through 2022-23, to $864.8 million. This trend includes an expected increase of 108.9% in the current year, as international travel recovers following restrictions lifting, demand recovering and travel becoming easier.

The industry underwrites (i.e. assumes, pools and spreads out the risk of financial losses over policyholders in exchange for premiums) travel insurance policies. Coverage can include losses from trip cancellation and delay, lost baggage and medical emergencies.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.