Insurers now focussed on customising travel coverage and offering transparent, jargon-free policies.

The travel industry has undergone significant shifts in recent years, with the emergence of “revenge travel”. This trend has seen individuals make up for missed travel opportunities during the pandemic, with demand expected to continue. However, despite a surge in post-pandemic travel, there is a concerning lack of a corresponding increase in insurance demand. Alarming findings from the Insurance Council of Australia reveal that one in six Australians (16%) embarked on their last journey without travel insurance, exposing themselves to potential risks.

The report also revealed that rising living costs drive 86% of travellers to cut corners on insurance, increasing their vulnerability.

As insurers, addressing the troubling trend of uninsured travel among Australians should be imperative. The commitment to making health coverage accessible, simple, and effective for travellers should be at the forefront of insurers’ strategies.

Customising insurance for individual travel experiences

In the post-pandemic landscape, there’s a growing demand for customisation in every aspect of the customer experience. As insurers, recognising the uniqueness of each traveller and adopting a modular approach is a must, as it enables individuals to personalise their policies.

Customisation allows individuals to select coverage that precisely aligns with their health needs, ensuring they invest in what matters most. This modular framework extends beyond geographical borders, allowing individuals to choose benefits that resonate with their specific travel plans, including additional activities coverage like snowboarding, motorcycling, or general risk factors.

Recognising that travel is not a one-size-fits-all experience, it is crucial for us to ensure that coverage aligns with travellers’ plans. Achieving this requires a profound understanding of each person’s unique needs. By offering modular options, we can empower customers, elevating insurance from a mere item to check off on a travel checklist to a personalised experience deeply tied to safety and peace of mind.

Leveraging technological developments to serve travellers better

Travel insurers must have their fingers on the pulse regarding technological advancements. This is how we ensure our processes stay agile and dynamic to respond to policyholders’ needs.

The spotlight is now on harnessing Artificial Intelligence (AI) to provide customers with more efficient, convenient, and innovative solutions. AI’s role in the insurance process is increasingly vital. It streamlines claims processing, offers instant customer support, and enhances the overall customer experience. Beyond efficiency, AI can make the process more user-friendly, improve policyholder understanding, and enable customisation, allowing us to focus on supporting the customer at every journey stage.

Of course, AI is only one side of the coin. We must also ensure we continue to evolve all aspects of our technology, such as employing data and analytics to comprehend customer behaviour, preferences, and needs. Diversifying and expanding product portfolios and distribution channels, with a keen focus on niche markets and digital platforms, further underscore our commitment to embracing technology for the benefit of our policyholders.

Technological advancements should not only enhance operational efficiency but also ensure that insurers can effectively address travellers’ dynamic and evolving needs. In today’s digital age, travellers need to have their insurance details easily accessible and digitally agile at their fingertips. As insurers, our end-to-end experience must prioritise this accessibility—this is critical in influencing travellers to view travel insurance as a necessity in the long term.

Awareness and transparency are critical.

An informed traveller is empowered, and insurers must be committed to providing clear, jargon-free information about policy terms and benefits. Transparent communication is vital, demystifying the complexities of insurance.

The findings from the Insurance Council of Australia also highlight the importance of education and awareness efforts. The survey reveals that only one in five insured travellers (19%) has invested time in reading every detail of their product disclosure statement (PDS) before embarking on their journey. This highlights that, too often, travel insurance is merely a box to be ticked.

Insurers also have a responsibility beyond business regarding travel; they must make insurance accessible and straightforward for all travellers. Our commitment to affordability and transparency in pricing must be steadfast, especially during a time of high financial concerns.

Travel insurers must grasp the dynamic factors shaping the industry, engaging in ongoing assessment and policy refinement to address emerging risks effectively. Staying ahead is vital, be it new health threats, geopolitical shifts, or technological advancements. This proactive approach ensures the industry’s commitment to relevant, responsive, and comprehensive coverage aligned with contemporary traveller needs. COVID-19 exemplifies the impact such threats can have on both the industry and consumers.

By prioritising individual needs, embracing technology, and fostering transparent communication, insurers can transform the perception of travel insurance from a costly burden to an essential item on every traveller’s ‘packing list.’

 

 

 

Written by: Suzanne White, Underwriter, Accident & Health, Canopius

Canopius is a leading global Accident and Health underwriter who looks at a complex world differently. Designing bespoke products with experienced underwriters in travel & personal accident products.

 

 

 

 

 

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