LONDON--(BUSINESS WIRE)--According to the latest procurement market intelligence report from Technavio, the travel insurance market is expected to grow at a CAGR of 9% over the next five years due to the availability of bundled travel insurance policies.
The research report titled ‘Global Travel Insurance Market: Procurement Market Intelligence Report 2017-2021’ provides an in-depth analysis of category spend, best procurement practices and cost saving opportunities, aimed at helping organizations achieve superior business performance. The report also provides insights on pricing, supplier positioning, and top companies, enabling sourcing professionals to improve their competitive advantage through procurement excellence.
“The global travel insurance market is registering growth in the demand for comprehensive travel insurance policies and the use of innovative technologies such as sensors to track baggage and fitness bands to track the health of travelers,” says lead Technavio procurement specialist Angad Singh for category spend intelligence. “The supply market primarily consists of regional players that dominate the market and has a few global players. Suppliers are using the latest technology such as data analytics to understand customer behavior and requirements related to travel insurance coverage,” added Angad.
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Cost Saving Opportunities in the Travel Insurance Market
The adoption of bundling of services and value-added services helps travel insurance suppliers to retain their customer base and increase their market share. However, the adoption depends on the nature of the business between buyers and suppliers, as well as past the engagement history and maturity of the category.
Technavio procurement experts have segmented the cost saving opportunities in the travel insurance market into the following value-enhancement opportunities:
- Adoption of technology
- Supplier Competition
- Adoption of negotiation strategies
- Optimization of procurement practices
- Bundling of services
Adoption of technology saving aspects
Wearable technology includes sensors that are placed inside the baggage of users. These sensors are connected to tracking devices worn by users. This helps users track the location of their baggage during transit and claim.
SaaS is a software licensing and delivery model in which a third-party provider hosts applications and makes it available to customers through cloud computing. For example, Acturis is an all-in-one insurance SaaS service provider offer technological services to the likes of insurance agencies and underwriters through cloud computing.
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Optimization of procurement practices saving aspects
Buyers need to assess costs associated with the coverage provided on different aspects, such as medical costs and AD&D to identify a cost-effective travel insurance package. Buyers should maintain a list of qualified suppliers that can cater to their requirements. This will not only help them save time on selection of suppliers but also reduce the time required to sort through a long and exhaustive list.
Bundling of services saving aspects
Buyers seek suppliers that can provide bundled services (i.e., core products bundled with value-added services such as trip protection, including death, sickness, or airline strikes, and trip cancelation) to make the policies relevant to customers' requirements.
The bundled services provided to baby boomers include medical and emergency assistance along with adventure sports coverage like skydiving or skiing. Additionally, the service providers offer coverage to financially unstable persons below 25 years of age who are accompanying the baby boomers.
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Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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