Studie - Travel Metrics: Consumer Approaches to Travel Insurance in Germany

Finaccord’s report titled Travel Metrics: Consumer Approaches to Travel Insurance in Germany offers detailed insights into the behaviour of German consumers in the context of travel insurance. Based on a primary survey of consumers in Germany carried out between June and August 2006, the research provides valuable data describing the extent to which those undertaking significant journeys take out travel insurance and clarifying the proportion of uninsured travellers who recognise the benefits of the insurance but simply do not get round to acquiring cover. In addition to calculating the percentage of consumers that buys travel insurance in Germany, the investigation also analyses the types of policy that they buy (ie. annual policies, single trip policies or policies packaged automatically with holidays / travel tickets or credit cards), whether they hold comprehensive or partial cover for travel-related risks, which distribution channel and interface they use to take out travel insurance and whether they buy a policy at the same time as arranging a holiday or travel ticket or either in advance or retrospectively. Finally, the report measures the degree to which consumers are satisfied with their insurance, whether they find it expensive and if they are unlikely to purchase it the next time that they undertake a significant trip, and ranks major underwriters of travel insurance according to the frequency with which they are identified by consumers as the provider of their policy. Key features of this report include: - unique analyses showing the percentage of consumers that acquire travel insurance in Germany and the potential for this proportion to grow further; - accurate data describing the percentage of travellers covered for a comprehensive range of travel-related risks as opposed to a limited array of risks only; - robust statistics illustrating the extent to which a plethora of alternative distribution channels, such as airlines, banking institutions, credit card issuers, retailers and direct sales by insurers are eroding the share of the travel trade; - reliable ranking of the underwriters identified by consumers as the providers of their travel insurance the last time that they undertook a significant journey; - valuable insights into the reasons given by travellers for not purchasing insurance (for example, because they did not have time, because it is too expensive, because they did not see the benefit).

TABLE OF CONTENTS

00 EXECUTIVE SUMMARY2

A significant proportion of consumers lack any form of travel cover when they make a significant trip 2

Annual travel insurance policies are used most commonly by insured travellers in Germany2

There is clear scope to increase the penetration of comprehensive travel insurance policies 2

German consumers can obtain travel cover in a wide range of formats from numerous providers3

A preference for lower cost policies results in a high proportion of sales made directly by insurers 3

The research suggests a comparatively small market for retrospective or ‘last minute’ sales 4

The vast majority of insured travellers appear to be fully satisfied with the cover that they acquired4

Expanding the market will require insurers and their distributors to implement several action points4

10 INTRODUCTION 6

Finaccord6

European consumer research6

Travel insurance6

Creditor insurance 6

Mobile telephone insurance7

European market, partnership and bancassurance research 7

Research rationale8

Consumer research illustrates the differences between Europe’s five most populous markets…8

… thereby helping underwriters and distributors to develop robust strategies for future development8

Research sample8

The research embraces a total of 1,210 respondents in Germany8

Research strengths and weaknesses10

A mixed Internet and telephone research methodology produces balanced results…10

… assisting insurance companies and other interested parties to benchmark their performance10

20 SURVEY ANALYSIS15

Introduction15

% of respondents undertaking significant travel16

% of respondents covered by insurance the last time that they travelled 17

Attitudes towards travel insurance of respondents without cover 18

Types of travel insurance protecting respondents 19

Risks covered by travel insurance protecting respondents21

Identities of underwriters offering travel insurance24

Policies paid for separately and automatic packaging26

Distribution channels used for travel insurance27

Distribution interfaces used for travel insurance 28

Point in time chosen by respondents to obtain travel insurance29

Attitudes towards travel insurance of respondents with cover 31





GRAPHICS / TABLES

Sample breakdown in Germany by age group, household income band and geographical location 9

% of respondents in Germany undertaking significant travel, 2004-6 16

% of respondents in Germany covered by insurance the last time that they undertook significant travel, 2004-6 17

% split of attitudes towards travel ins of resps in Germany undertaking significant travel without cover, 2004-6 18

Types of travel insurance protecting respondents in Germany, 2004-6 20

Risks covered by travel insurance in Germany, 2004-6 (penetration among those with travel insurance) 22

Risks covered by travel insurance in Germany, 2004-6 (penetration among all undertaking significant travel) 23

Identities of underwriters offering travel insurance in Germany, 2004-6 25

Segment of travel ins in Germany between pols paid for separately and pols packaged automatically, 2004-6 26

Distribution channels used for stand-alone travel insurance protecting respondents in Germany, 2004-6 27

Distribution interfaces used for stand-alone travel insurance protecting respondents in Germany, 2004-6 28

Point in time chosen by respondents in Germany to obtain stand-alone travel insurance, 2004-6 30

% split of attitudes towards travel insurance of respondents in Germany with cover, 2004-6 31

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