Researches and statistics show that travelers are increasingly concerned about travel insurance in their future trips. Therefore, this may become an indispensable factor for businesses in the industry from now on.
Travel insurance is a regulated product that is modified and agreed upon between the purchaser and the insurance company to cover losses a traveler may incur during their trip. These losses may include rental damage, flight delays, lost baggage, medical expenses and other losses arising from trip cancellations. The cost of travel insurance is usually calculated from 5-7% of a traveler’s trip cost.
The explosion of travel insurance
According to Generali Global Assistance (GCA), up to 58.1% of travelers that participated in the survey said they would purchase travel insurance packages for all their trips from here onwards and 32.8% of travelers are going to purchase travel insurance for their upcoming trips in 2021. Thus, after the pandemic, the concept of purchasing travel insurance gradually received more attention than ever before.
Although purchasing travel insurance was usually only for adventurous and considerably risky trips in the past, it is now becoming common and even a requirement for some countries. For example, according to the current regulations of Thailand government, visitors must be citizens from low-risk countries and are required to purchase health insurance of 100,000 USD if they want to visit this “Land of Smiles”.
Another reason contributing to the bloom of travel insurance lies in travelers’ sentiment. At such a sensitive time like this, maintaining health while traveling becomes a top priority for travelers. And if the travelers happen to be infected, buying travel insurance before departure will save them a large amount for treatment cost at their destination. Moreover, with unforeseen problems that cause travelers to stay abroad longer than expected, travel insurance will help them with the repatriation process, alleviating at least one of their concerns in the poor circumstances they are facing at that time. Travel insurance can be considered a cleverly safe investment.
How are enterprises adapting to this need?
Businesses in the travel industry are also responsive to travelers’ lack of confidence and therefore, have rapidly added travel insurance to their service package to help customers feel more secure. Of course, the coverage in this insurance package may not be as comprehensive as the insurance product of a real travel insurance company. However, this also creates a smoother convenience in customers’ experience since they no longer have to worry about contacting an insurance company to sign up for the travel insurance they need.
Emirates Airlines of the United Arab Emirates has won the World Travel Leaders Award for its COVID-19 insurance initiative package. By adopting this unique policy, Emirates becomes the first airline in the world to commit to covering COVID-19-related medical expenses for all passengers using its flight services. In particular, passengers on all Emirates flights can use the travel insurance coverage worth up to 150,000 euro if they accidentally contact COVID-19 during their travels.
In addition, some businesses have actively cooperated with a travel insurance company to create new products, thereby leaving a greater impression regarding convenience and thoughtfulness on customers.
Recently, Skyscanner has partnered up with the insurance technology company named Insurtech to launch a brand new travel insurance package of “Cover Genius”. As a result, Skyscanner’s travel partners and customers will be insured for 24/7 emergency medical assistance, repatriation as well as expense cover, trip cancellation cover for prepaid travel costs foregone due to COVID-19, and other causes, including failed temperature checks at a destination, as well as airline insolvency cover.
COVID-19 has indeed changed the way people travel forever by making health and safety the new prerequisites. Therefore, travel insurance will also become one of the crucial criteria for travelers when choosing destinations, airlines, hotels or other travel service providers. The inclusion of travel insurance in products may give tourism and travel businesses an edge over their competitors as it offers a sense of security to travelers.