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Travel Insurance and Assistance in South Africa Product Image

Travel Insurance and Assistance in South Africa

  • ID: 2733126
  • October 2013
  • Region: Africa, South Africa
  • 32 Pages
  • Finaccord

The report titled Travel Insurance and Assistance in South Africa is about the current status and likely future development of the market for stand-alone travel insurance policies in South Africa. It includes the following unique features:

- data spanning 2009 to 2013 for the underlying travel market with segmentations by type of journey (between holiday and business trips) and by destination country;

- data for the size of the market for stand-alone travel insurance and assistance in South Africa between 2009 and 2013 in terms of premiums and policies, with a segmentation between single-trip and annual cover;

- analyses of the share of distribution relationships of travel insurance providers split between travel trade, transportation and financial organisations, based on a primary survey of well over 100 actual and potential distributors of stand-alone travel policies;

- a review of other direct and affinity distribution channels used in South Africa, including cover packaged with payment cards and bank accounts as well as automotive clubs, direct sales, online aggregators and brokers, other online brands and retailers;

- forecasts to 2017 for both READ MORE >

Note: Product cover images may vary from those shown

0.0 EXECUTIVE SUMMARY

1.0 INTRODUCTION

What is this report about?

Rationale

This report updates and expands upon Finaccord's previous ground-breaking research

Methodology

Primary research

The survey includes well over 100 travel trade, transportation and financial organisations…

…and draws on a separate analysis of travel benefits linked to banking products

Market data

External sources

Travel insurance and assistance: how it all fits together

The term 'travel insurance' can refer to protection from a heterogeneous range of risks…

...and assistance companies play a fundamental role in the global travel insurance industry

Definitions

Terms and abbreviations

Types of packaged travel insurance and assistance

Operating models

Currencies, exchange rates and inflation

PartnerBASE and market data annexe

Finaccord

2.0 MARKET ANALYSIS

Introduction

Underlying foreign travel market

The volume of outbound road traffic is highly significant in this market...

...although the total number of foreign trips has yet to return to the peak levels seen in 2011

Destinations within Africa account for around 75% of all foreign travel by South African residents

Market for travel insurance and assistance

In real terms, the value of South Africa's travel insurance market is growing at around 4.5% per year…

…and an increasing proportion of travel policies take the form of annual or multi-trip cover

Distribution through travel trade, transportation and financial organisations

Summary of organisations researched

Provision rates

Virtually all traditional and online travel agents distribute travel insurance policies...

... although provision rates for stand-alone cover are much lower among banks

Operating models

Around half of South African travel agents work with more than one insurance provider

Competitor share of partnerships

The supply structure via the travel trade appears to be relatively concentrated...

... and TIC benefits from exclusive distribution agreements with a number of key players...

... although there is at least one relatively new market entrant

AIG has two key airline partnerships, one established directly and one via an intermediary

Absa Insurance is the only captive underwriter active in the bank distribution channel

Travel insurance and assistance linked to payment cards and bank accounts

The vast majority of credit card products feature one of more elements of travel insurance…

…although it is rare for travel cover to be included with debit cards or packaged accounts

Other distribution channels

Automotive clubs

Direct distribution by insurance underwriters

Around half of South Africa's leading non-life underwriters sell travel policies direct to the public

Online aggregators and brokers

Just one of South Africa's main insurance aggregators compares travel quotes...

Other online brands

...albeit a number of online brands distribute cover on behalf of Regent alone

Retailers

Retailers are not widely active in this field, with one or two exceptions

Other types of distributor

Forecasts

Underlying foreign travel market

The number of foreign holiday trips is expected to grow at around 3.5% per annum up to 2017

Market for travel insurance and assistance

In nominal terms, premiums are likely to exhibit annual growth of almost 10% in the coming years

LIST OF GRAPHICS / TABLES

TABLE OF CONTENTS

0.0 EXECUTIVE SUMMARY

Key market data for travel insurance and assistance in South Africa, 2009, 2013 and 2017

1.0 INTRODUCTION

Travel insurance and assistance: how it all fits together

2.0 MARKET ANALYSIS

Number of foreign trips undertaken by residents of South Africa, segmented by purpose of trip, 2009 to 2013

Number of foreign trips undertaken by residents of South Africa, segmented by purpose of trip, 2009 to 2013 (table)

Destinations of foreign trips undertaken by residents of South Africa, 2012

Estimated gross written premiums and policy numbers for travel insurance and assistance in South Africa, 2009 to 2013

Estimated gross written premiums and policy numbers for travel insurance and assistance in South Africa, 2009 to 2013 (table)

Summary of travel trade, transportation and financial organisations researched in South Africa, segmented by type, 2013

Provision rates for stand-alone travel insurance and assistance in South Africa, segmented by type of travel trade, transportation and financial organisation, 2013

Operating models used for stand-alone travel insurance and assistance in South Africa, segmented by type of travel trade, transportation and financial organisation, 2013

Operating models used for stand-alone travel insurance and assistance in South Africa, segmented by type of travel trade, transportation and financial organisation, 2013 (table)

Competitor share of partnerships for stand-alone travel insurance and assistance in South Africa, 2013: travel trade organisations

Competitor share of partnerships for stand-alone travel insurance and assistance in South Africa, 2013: transportation organisations

Competitor share of partnerships for stand-alone travel insurance and assistance in South Africa, 2013: financial organisations

Provision rates for travel insurance and assistance linked to payment cards and bank accounts in South Africa, segmented by product function and level, and by type of cover, 2013

Forecast number of foreign trips undertaken by residents of South Africa, segmented by purpose of trip, 2017

Forecast number of foreign trips undertaken by residents of South Africa, segmented by purpose of trip, 2017 (table)

Forecast gross written premiums and policy numbers for travel insurance and assistance in South Africa, 2017

Forecast gross written premiums and policy numbers for travel insurance and assistance in South Africa, 2017 (table)

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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