Consumer Approaches to Travel Insurance in Europe

Table of Contents

0.0 EXECUTIVE SUMMARY

• Between 60% and 75% of consumers have undertaken significant travel during the last two years
• Travellers from Germany and the UK are most likely to acquire travel cover on an unbundled basis
• Only a small proportion of consumers in France, Italy and Spain possess annual travel policies
• Penetration of comprehensive cover is vastly higher in the UK than the four continental nations
• Travellers frequently lack awareness of the identify of their travel insurance underwriter
• Direct sales have usurped the travel trade as the main distribution channel in Germany and the UK
• Airline distribution has developed strongly in Spain while other affinity channels prosper in the UK
• Face-to-face sales continue to account for the majority of sales in all territories other than the UK...
• ... although the UK is probably the strongest market for ' last minute' sales of travel insurance
• German travellers are most likely to be satisfied with their policy and least likely to question its cost

1.0 INTRODUCTION

• Finaccord
• European consumer research
• Travel insurance
• Creditor insurance
• Mobile telephone insurance
• European market, partnership and bancassurance research
• Research rationale
• Consumer research illustrates the differences between Europe' s five most populous markets...
• ... thereby helping underwriters and distributors to develop robust strategies for future development
• Research methodology
• The research embraces a total of over 6,250 respondents across the five countries
• Research strengths and weaknesses
• A mixed Internet and telephone research methodology produces balanced results...
• ... assisting insurance companies and other interested parties to benchmark their performance

2.0 EUROPEAN OVERVIEW

• Introduction
• % of respondents undertaking significant travel
• Consumers undertaking significant travel fall in the 60%-75% band across all countries
• % of respondents covered by insurance the last time that they travelled
• Likelihood of being covered by insurance is far higher among travellers from the UK
• Attitudes towards travel insurance of respondents without cover
• Many consumers simply fail to get round to ensuring that they hold adequate cover for travel risks
• Types of travel insurance protecting respondents
• Consumers in Germany and the UK are most likely to purchase unbundled travel insurance
• Approximately one third of Italian and Spanish travellers with insurance obtain automatic cover
• Awareness and use of travel insurance packaged with credit cards is highest by far in France
• Risks covered by travel insurance
• Outside of the UK, less than a third of travellers with cover hold comprehensive policies...
• All insured French travellers believe that they can access assistance in the event of emergencies
• Cover for delays to flights or trips is rarely provided in countries other than the UK
• Over two thirds of UK consumers engaging in significant travel hold comprehensive policies
• Identities of underwriters offering travel insurance
• Travellers are often unaware of the identity of the insurance entity providing their policy...
• ... although nearly a quarter of Italian consumers identify Europ Assistance as their provider
• Travel insurance - policies paid for separately and automatic packaging
• Over 75% of Spanish consumers consider a packaged policy to be their most important cover
• Over five times as many potential customers in the UK buy unbundled cover as occurs in France
• Distribution channels used for travel insurance
• Distribution choices can be analysed separately for consumers buying stand-alone policies
• Direct purchase accounts for the highest share of sales in Germany and the UK...
• ... while airlines appear to be performing particularly well as distributors in the Spanish market
• Distribution interfaces used for travel insurance
• Face-to-face sales constitute the dominant interface in all markets other than the UK
• Point in time chosen by respondents to obtain travel insurance
• The market for ' last minute' sales of travel insurance is apparently greatest in the UK
• Irrespective of the moment in time, UK travellers are most likely to buy stand-alone insurance
• Attitudes towards travel insurance of respondents with cover
• German travellers are most likely to regard travel cover as being both important and valuable...
• ... and their counterparts in France are most likely to regret having bought stand-alone policies

3.0 FRANCE

• Introduction
• Research sample
• The research embraces a total of 1,232 respondents in France
• % of respondents undertaking significant travel
• % of respondents covered by insurance the last time that they travelled
• Attitudes towards travel insurance of respondents without cover
• Types of travel insurance protecting respondents
• Risks covered by travel insurance protecting respondents
• Identities of underwriters offering travel insurance
• Policies paid for separately and automatic packaging
• Distribution channels used for travel insurance
• Distribution interfaces used for travel insurance
• Point in time chosen by respondents to obtain travel insurance
• Attitudes towards travel insurance of respondents with cover

4.0 GERMANY

• Introduction
• Research sample
• The research embraces a total of 1,210 respondents in Germany
• % of respondents undertaking significant travel
• % of respondents covered by insurance the last time that they travelled
• Attitudes towards travel insurance of respondents without cover
• Types of travel insurance protecting respondents
• Risks covered by travel insurance protecting respondents
• Identities of underwriters offering travel insurance
• Policies paid for separately and automatic packaging
• Distribution channels used for travel insurance
• Distribution interfaces used for travel insurance
• Point in time chosen by respondents to obtain travel insurance
• Attitudes towards travel insurance of respondents with cover

5.0 ITALY

• Introduction
• Research sample
• The research embraces a total of 1,222 respondents in Italy
• % of respondents undertaking significant travel
• % of respondents covered by insurance the last time that they travelled
• Attitudes towards travel insurance of respondents without cover
• Types of travel insurance protecting respondents
• Risks covered by travel insurance protecting respondents
• Identities of underwriters offering travel insurance
• Policies paid for separately and automatic packaging
• Distribution channels used for travel insurance
• Distribution interfaces used for travel insurance
• Point in time chosen by respondents to obtain travel insurance
• Attitudes towards travel insurance of respondents with cover

6.0 SPAIN

• Introduction
• Research sample
• The research embraces a total of 1,250 respondents in Spain
• % of respondents undertaking significant travel
• % of respondents covered by insurance the last time that they travelled
• Attitudes towards travel insurance of respondents without cover
• Types of travel insurance protecting respondents
• Risks covered by travel insurance protecting respondents
• Identities of underwriters offering travel insurance
• Policies paid for separately and automatic packaging
• Distribution channels used for travel insurance
• Distribution interfaces used for travel insurance
• Point in time chosen by respondents to obtain travel insurance
• Attitudes towards travel insurance of respondents with cover

7.0 UNITED KINGDOM

• Introduction
• Research sample
• The research embraces a total of 1,340 respondents in the UK
• % of respondents undertaking significant travel
• % of respondents covered by insurance the last time that they travelled
• Attitudes towards travel insurance of respondents without cover
• Types of travel insurance protecting respondents
• Risks covered by travel insurance protecting respondents
• Identities of underwriters offering travel insurance
• Policies paid for separately and automatic packaging
• Distribution channels used for travel insurance
• Distribution interfaces used for travel insurance
• Point in time chosen by respondents to obtain travel insurance
• Attitudes towards travel insurance of respondents with cover

GRAPHICS / TABLES

• Sample breakdown across five European countries by age group
• Sample breakdown across five European countries by annual household income
• % of respondents in five European countries undertaking significant travel, 2004-6
• % of resps. in five Euro.countries covered by insurance the last time that they undertook significant travel, 2004-6
• % split of atts. towards travel ins. of resps. undertaking significant travel in five Euro. countries without cover, 2006
• Types of travel insurance protecting respondents in five European countries, 2004-6
• Risks covered by travel insurance in five Euro. countries, 2004-6 (penetration among those with travel insurance)
• Risks covered by travel ins. protecting resps. in five Euro. countries, 2004-6 (pen. among all undertaking sig. travel)
• Identities of underwriters offering travel insurance in five European countries, 2004-6
• Segment. of travel ins. in five Euro. countries between pols. paid for sep. and pols. pack' d automatically, 2004-6 (1)
• Segment. of travel ins. in five Euro. countries between pols. paid for sep. and pols. pack' d automatically, 2004-6 (2)
• Distribution channels used for stand-alone travel insurance in five European countries, 2004-6
• Distribution interfaces used for stand-alone travel insurance in five European countries, 2004-6
• Point in time chosen by respondents in five European countries to obtain stand-alone travel insurance, 2004-6 (1)
• Point in time chosen by respondents in five European countries to obtain stand-alone travel insurance, 2004-6 (2)
• % split of attitudes towards stand-alone travel insurance of respondents in five Euro. countries with cover, 2004-6
• Sample breakdown in France by age group, household income band and geographical location
• % of respondents in France undertaking significant travel, 2004-6
• % of respondents in France covered by insurance the last time that they undertook significant travel, 2004-6
• % split of attitudes towards travel insurance of resps. in France undertaking significant travel without cover, 2004-6
• Types of travel insurance protecting respondents in France, 2004-6
• Risks covered by travel insurance in France, 2004-6 (penetration among those with travel insurance)
• Risks covered by travel insurance in France, 2004-6 (penetration among all undertaking significant travel)
• Identities of underwriters offering travel insurance in France, 2004-6
• Segment. of travel insurance in France between pols. paid for separately and pols. packaged automatically, 2004-6
• Distribution channels used for stand-alone travel insurance protecting respondents in France, 2004-6
• Distribution interfaces used for stand-alone travel insurance protecting respondents in France, 2004-6
• Point in time chosen by respondents in France to obtain stand-alone travel insurance, 2004-6
• % split of attitudes towards travel insurance of respondents in France with cover, 2004-6
• Sample breakdown in Germany by age group, household income band and geographical location
• % of respondents in Germany undertaking significant travel, 2004-6
• % of respondents in Germany covered by insurance the last time that they undertook significant travel, 2004-6
• % split of attitudes towards travel ins. of resps. in Germany undertaking significant travel without cover, 2004-6
• Types of travel insurance protecting respondents in Germany, 2004-6
• Risks covered by travel insurance in Germany, 2004-6 (penetration among those with travel insurance)
• Risks covered by travel insurance in Germany, 2004-6 (penetration among all undertaking significant travel)
• Identities of underwriters offering travel insurance in Germany, 2004-6
• Segment. of travel ins. in Germany between pols. paid for separately and pols. packaged automatically, 2004-6
• Distribution channels used for stand-alone travel insurance protecting respondents in Germany, 2004-6
• Distribution interfaces used for stand-alone travel insurance protecting respondents in Germany, 2004-6
• Point in time chosen by respondents in Germany to obtain stand-alone travel insurance, 2004-6
• % split of attitudes towards travel insurance of respondents in Germany with cover, 2004-6
• Sample breakdown in Italy by age group, household income band and geographical location
• % of respondents in Italy undertaking significant travel, 2004-6
• % of respondents in Italy covered by insurance the last time that they undertook significant travel, 2004-6
• % split of attitudes towards travel insurance of resps. in Italy undertaking significant travel without cover, 2004-6
• Types of travel insurance protecting respondents in Italy, 2004-6
• Risks covered by travel insurance in Italy, 2004-6 (penetration among those with travel insurance)
• Risks covered by travel insurance in Italy, 2004-6 (penetration among all undertaking significant travel)
• Identities of underwriters offering travel insurance in Italy, 2004-6
• Segment. of travel insurance in Italy between pols. paid for separately and pols. packaged automatically, 2004-6
• Distribution channels used for stand-alone travel insurance protecting respondents in Italy, 2004-6
• Distribution interfaces used for stand-alone travel insurance protecting respondents in Italy, 2004-6
• Point in time chosen by respondents in Italy to obtain stand-alone travel insurance, 2004-6
• % split of attitudes towards travel insurance of respondents in Italy with cover, 2004-6
• Sample breakdown in Spain by age group, household income band and geographical location
• % of respondents in Spain undertaking significant travel, 2004-6
• % of respondents in Spain covered by insurance the last time that they undertook significant travel, 2004-6
• % split of attitudes towards travel insurance of resps. in Spain undertaking significant travel without cover, 2004-6
• Types of travel insurance protecting respondents in Spain, 2004-6
• Risks covered by travel insurance in Spain, 2004-6 (penetration among those with travel insurance)
• Risks covered by travel insurance in Spain, 2004-6 (penetration among all undertaking significant travel)
• Identities of underwriters offering travel insurance in Spain, 2004-6
• Segment. of travel insurance in Spain between pols. paid for separately and pols. packaged automatically, 2004-6
• Distribution channels used for stand-alone travel insurance protecting respondents in Spain, 2004-6
• Distribution interfaces used for stand-alone travel insurance protecting respondents in Spain, 2004-6
• Point in time chosen by respondents in Spain to obtain stand-alone travel insurance, 2004-6
• % split of attitudes towards travel insurance of respondents in Spain with cover, 2004-6
• Sample breakdown in the UK by age group, household income band and geographical location
• % of respondents in the UK undertaking significant travel, 2004-6
• % of respondents in the UK covered by insurance the last time that they undertook significant travel, 2004-6
• % split of attitudes towards travel insurance of resps. in the UK undertaking significant travel without cover, 2004-6
• Types of travel insurance protecting respondents in the UK, 2004-6
• Risks covered by travel insurance in the UK, 2004-6 (penetration among those with travel insurance)
• Risks covered by travel insurance in the UK, 2004-6 (penetration among all undertaking significant travel)
• Identities of underwriters offering travel insurance in the UK, 2004-6
• Segment. of travel ins. in the UK between pols. paid for separately and pols. packaged automatically, 2004-6
• Distribution channels used for stand-alone travel insurance protecting respondents in the UK, 2004-6
• Distribution interfaces used for stand-alone travel insurance protecting respondents in the UK, 2004-6
• Point in time chosen by respondents in the UK to obtain stand-alone travel insurance, 2004-6
• % split of attitudes towards travel insurance of respondents in the UK with cover, 2004-6