ST PETE BEACH, FL August 16, 2010 – Travelers are insuring more expensive trips compared to the first half of 2009. The top travel insurance carriers gained market share with creative pricing.
This shifted the Squaremouth sales leaderboard; Travelex, CSA and Travel Insured, respectively, ranked as the best-selling insurers for the first half of 2010.
“The average trip cost rose by $450 in the first half of 2010, however, the average tip length remained constant.” said Chris Harvey, CEO. “The travel insurance carriers capitalizing on this trend offer good value for families or for trips in the very near future.”
Both Travelex and Travel Insured offer plans that don’t charge for children. This means good coverage and low premium for families, one reason why both companies have remained near the top of the leaderboard.
Travelex retains the top spot from 2009, however, the percentage of policies sold decreased from 20.44% to 18.90%. The lower share of sales is indicative of why comparison shopping is important.
“Travel insurance is not a ‘one-size-fits-all’ product.” according to Harvey. “The best selling carrier normally captures about 20% of policy sales, which means 80% of the time a different carrier offers a more well suited plan.”
CSA enjoyed growth in percentage of sales, largely the result of favorable prices when the trip is within 2 months from the policy purchase date. The industry average is 61 days, while CSA averages 41 days. This is also a reason why they insure the highest average trip cost at $4734. Higher trip costs raise the premium, but since CSA’s premiums decrease when the trip is near, their plans are easily distinguished as a better value for last minute travel planners.
Travel Insured policy sales are the most evenly distributed among different age ranges. Measured by age brackets in increments of 10 years, every group from 20 years old to 80 years old accounts for more than 10% of their sales. This shows how Travel Insured uses variety in their policies’ coverage and pricing to appeal to the widest array of ages.
Travel Guard, the 4th ranking travel insurance carrier, experienced the largest increase, up almost 7% in share of sales from the same period last year. They are a close second to CSA for the highest average premium at $4,728, only off the lead by $6 per policy. Travel Guard offers the largest number of plans on Squaremouth.com, catering to many different trip types, lengths and costs. This has helped their market share growth as the average trip cost increased overall.
“The most successful carriers so far in 2010 have specifically targeted plans and pricing.” explained Harvey. “Comparing travel insurance plans lets travelers get the best value by finding out what niche they fit.”
In the first half of 2010, Squaremouth sold policies from 21 carriers. The leaderboard represents the top ten carriers and the percentage of policies sold.
1 – Travelex – 18.90%
2 – CSA Travel Protection – 15.48%
3 – Travel Insured International – 14.65%
4 – Travel Guard – 13.25%
5 – Seven Corners – 8.94%
6 – TravelSafe – 6.64%
7 – HCC Medical Insurance Services – 5.13%
8 – MH Ross – 3.41%
9 – HTH Worldwide – 3.25%
10 – iTravelInsured – 2.49%
***Note: All figures relate to Squaremouth’s sales performance through the first half of 2010.
Squaremouth is America’s fastest growing travel insurance comparison site, helping customers instantly quote, compare and buy policies from every major carrier. Squaremouth has web sites in the US and UK, and an extensive network of partner sites worldwide. The company is headquartered in St Pete Beach, FL., with offices in Fort Wayne, IN. Visit Squaremouth.com or Squaremouth.co.uk.
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