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Travel Insurance and Assistance in Canada Product Image

Travel Insurance and Assistance in Canada

  • Published: December 2013
  • Region: Canada
  • 33 Pages
  • Finaccord

Travel Insurance and Assistance in Canada is about the current status and likely future development of the market for stand-alone travel insurance policies in Canada. 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 Canada 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 over 160 actual and potential distributors of stand-alone travel policies;

- a review of other direct and affinity distribution channels used in Canada, 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 the underlying travel market and for the size of the market for stand-alone travel insurance and assistance in terms of premiums and policies, with the same segmentations as those specified above for the period from 2009 to 2013.

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 more than 160 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

Canada's outbound travel sector has continued to grow quite rapidly in recent years

The US is by far the most common destination, accounting for around 70% of foreign trips

Market for travel insurance and assistance

In real terms, Canada's travel insurance market is growing at more than 8% per annum…

...and annual or multi-trip policies represent a fairly significant segment of this market

Distribution through travel trade, transportation and financial organisations

Summary of organisations researched

Provision rates

Policies are available from the vast majority of travel agents, and from a number of leading airlines

Around half of Canada's banks – including each of the Big Five – offer stand-alone travel cover

Operating models

The vast majority of distributors in Canada choose to partner with a single, external underwriter...

...although some banks make use of captive insurance companies, and one works with a broker

Competitor share of partnerships

Three Canadian insurers account for more than 80% of schemes operated by the travel trade

Manulife benefits from a group-level partnership with the Globus family of brands...

... and stands to benefit hugely from a deal struck with RBC Insurance during 2013

Allianz Global Assistance appears to focus on partnering with online travel specialists

Allianz Global Assistance, RBC Insurance and Manulife each partner with a number of airlines...

...and the policies available through British Airways have a more complicated supply structure

Manulife and TIC are the most common partners for financial organisations selling stand-alone cover...

...although the research identified a large number of captive and external providers in this area

Travel insurance and assistance linked to payment cards and bank accounts

More than 35% of credit card products feature comprehensive travel cover…

…but provision of the different types of travel cover varies between standard and premium cards

Other distribution channels

Automotive clubs

Two automotive clubs have formed a new insurance company specialising in travel cover

Direct distribution by insurance underwriters

The majority of leading providers are equipped to sell travel policies directly to the consumer...

...although several prominent property and casualty insurers do not offer travel insurance

Online aggregators and brokers

Many of Canada's leading insurance aggregators compare travel insurance

Other online brands

Retailers

Travel policies are available from two of Canada's largest retail groups

Other types of distributor

The Canadian Snowbird Association is a very relevant affinity partner for travel insurance

Forecasts

Underlying foreign travel market

The number of foreign business trips is expected to grow at around 7% per annum

Market for travel insurance and assistance

In nominal terms, premiums are likely to exhibit annual growth of more than 9% in the coming years

LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY

Key market data for travel insurance and assistance in Canada, 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 Canada, segmented by purpose of trip, 2009 to 2013

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

Destinations of foreign trips undertaken by residents of Canada, 2012

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Note: Product cover images may vary from those shown

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