SOURCE: US Travel Insurance Association

September 18, 2006 10:30 ET

New Study Reveals Who Buys Travel Insurance

Demand Triples; Higher Income, Education Play Roles

NEW YORK, NY -- (MARKET WIRE) -- September 18, 2006 -- According to a new consumer study from the US Travel Insurance Association (UStiA), people who buy travel insurance tend to be more well-educated, travel more frequently and have higher household incomes than those who don't.

Buying Influencers: Destination and Type of Trip

The survey showed that people are more likely to buy insurance when there are more factors out of their control. For example, consumers traveling overseas are three times more likely to buy insurance than those traveling within North America.

Travel insurance buyers are often doing one or more of the following: traveling with a group of people; taking longer trips; going on more expensive trips; or have considerable pre-paid non-refundable expenses. Also most travelers (70%) taking a cruise buy travel insurance. Other differences between those who purchase travel insurance and those who don't are:

Reason for travel - Purchasers of travel insurance are more likely to have a destination or activity as part of their trip rather than visiting friends and relatives.

Sources of Information - Purchasers of travel insurance use more sources of information to plan their trip, while non-purchasers typically rely on friends and relatives as information sources. In fact, 77% of people using a travel agent to book their vacation bought travel insurance, which means they are twice as likely to purchase travel insurance as those who booked their own trips.

The 2006 Travel Insurance Consumer Survey was conducted online in late 2005 of 850 people who had taken at least one leisure trip of one night or more in the last 12 months.

About UStiA

UStiA promotes fairness, integrity and a commitment to excellence in the travel insurance industry. UStiA is a non-profit association of insurance carriers and allied businesses involved in the development, administration and marketing of travel insurance and assistance. In 2004, UStiA member companies provided travel insurance policies to more than 17 million people. Travel insurance is available from travel agencies, airlines, tour operators, hotels and resorts, and insurance brokers as well as through the internet. For more information on UStiA visit www.ustravelinsurance.org.

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