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Cruise Lines, Tour Operators, Travel Agents Account For 65% of Travel Insurance Sales
UStiA Survey Reveals Caribbean Most Popular for Travel Insurance
Sixty-seven million Americans spent $1.3 billion on travel insurance in 2006, representing an overall increase of 20% over 2004, according to the 2007 Travel Insurance Market Survey conducted by UStiA.
Of that, cruise lines, tour operators, and travel agencies together accounted for more than 65% of travel insurance sales from UStiA members, with online channels representing another 10%. When broken out, cruise lines and tour operators totaled 37% of all sales, representing an increase of nearly 25%,over 2004.
Insurance products purchased directly from travel agents were close behind, accounting for nearly 30% of sales, an increase of 10% over 2004. However, UStiA president Brad Finkle points out that agencies are also a major distribution channel for the 37% of cruise line and tour operator sales.
When looking at the number of passengers insured, cruise lines and tour operators accounted for nearly half of all insured people, while direct travel agent sales covered 20% of those insured.
Online Sales Double
Online sales produced by travel agencies, airlines and brokers doubled in 2006 from 2004. While the overall travel insurance dollars produced by this segment was only 9% of the total market, online sales were responsible for 20% of all people covered by travel insurance.
Not surprisingly, online distribution channels reach the youngest portion of the market with an average age of 39, while travel agency insurance purchasers are on average 47 years old.
Caribbean Most Popular Destination for Travel Insurance
The Caribbean proved to be the most popular destination for all purchasers of travel insurance. U.S. destinations and Mexico followed in ranking for those who bought travel insurance through agencies, while Europe and the U.S. took second and third place respectively for purchasers who bought through tour operators and cruise lines.
The 2007 Travel Insurance Market Survey was conducted for UStiA by Avalon Actuarial Consulting, an independent Actuarial and Beneft Consulting Firm. The survey was designed to gather and disseminate market information to UStiA association members and the general public, and follows the benchmark 2004 Travel Insurance survey.
About UStiA
UStiA estimates that its membership represents over 90% of the travel insurance market in the U.S. The association promotes fairness, integrity and a commitment to excellence in the travel insurance industry. With a mission to educate the public on travel insurance while maintaining high industry standards, the UStiA is a non-profit association of insurance carriers and allied businesses involved in the development, administration and marketing of travel insurance and assistance. For more information on UStiA and travel insurance visit www.ustia.org.