Industry Voice: Global travel insurance for how we travel now

Digital advancements in travel insurance
With the rapid shift to digital solutions, customers, particularly millennials and Gen Zs, are increasingly favouring app-based digital propositions. These platforms allow everything to be managed within the app, making it easier to add coverage on the go. This switch on/switch off insurance model is a significant improvement over traditional methods, which often require phone calls and can be time-consuming.
Freely, for example, can use motion sensors on mobiles to remind users to get insurance coverage if they engage in certain activities, like riding a motorcycle, without the necessary coverage. This real-time, user-friendly approach gives travellers prompts that they might need to put more protection in place.
Targeted pricing and product adaptation
Insurance providers are becoming increasingly targeted with their pricing due to changing consumer behaviour. For example, cruise insurance has historically been expensive for several reasons: the fact that cruises were seen as a holiday option more likely to be enjoyed by older people with more medical conditions; the high cost of transferring sick or injured patients to onshore medical facilities; and the higher likelihood of cancellations.
However, the landscape of cruising is changing. The growing popularity of family-oriented and younger cruise brands, like Virgin Voyages and Celebrity Cruises, is shifting the demographic. Insurance providers need to understand these new risks and be more targeted in their approach to offering cruise insurance, making it more accessible and appealing to a broader range of travellers.
Enhancing value for money
Travellers are also seeking more value for money when buying travel insurance. With only about 4–10% of customers receiving payouts from travel insurance claims, many see little return for their premiums. Insurance providers need to find ways to improve the proposition and increase the suite of products and services that people can access from their insurance plans.
One way to enhance value is by offering new digital services that can be used without making a claim, such as parametric benefits. This approach harnesses real-time data to provide benefits automatically. For instance, if a customer’s flight is delayed, they can automatically receive lounge access or food vouchers without needing to file a claim.
Zurich and Blink Parametric have launched a flight disruption solution in Asia Pacific that offers real-time benefits to customers experiencing flight delays. Under this collaboration, Zurich provides eligible customers with, for example, complimentary access to a VIP airport lounge. If the lounge cannot be used on the day of disruption, the pass remains valid for six months and can be used worldwide. This innovative approach enhances customer experience without the need for traditional claims processes.
Travel safety assistance apps
Sophisticated travel assistance apps are another example of how insurance providers are adding value to customers. These apps, equipped with real-time safety alerts enabled by geo-tracking, offer comprehensive support. Cover-More’s safe travel app monitors worldwide events and notifies travellers in real time if potential threats are developing nearby, helping them avoid risky situations. The app can also guide travellers to safer locations or connect them to Cover-More’s 24/7 emergency assistance teams in London, Toronto and Brisbane at the tap of a button.
Insurance providers need to find ways to improve the proposition and increase the suite of products and services that people can access from their insurance plans
The app can be best described as a comprehensive travel companion, offering immediate response and support to travellers in various situations. Its capabilities were demonstrated during the earthquake in Turkey last year, where the app’s technology allowed the Cover-More assistance team to quickly locate and reach out to users affected by the disaster. The app is currently available in Australia and New Zealand, in the US under the Travelex Insurance Services brand, and in the UK for companies to offer to their business travel employees through Cover-More’s World Travel Protection brand.
Telemedicine and medical consultations
Medical video consultations are another valuable benefit being offered to provide additional services on top of traditional travel insurance. When travelling, consumers often don’t want to take time out of their holiday to seek medical advice or may be too unwell to travel to a local doctor’s office. Having the ability to speak to a trained medical professional from the comfort of their room is a significant benefit, especially when they are based in the traveller’s destination country, allowing them to issue prescriptions.
Universal Assistance in Latin America has developed technical integrations with medical providers worldwide to offer telemedicine with prescription services through its app. This service has proven popular, with Universal Assistance reporting more than 300,000 app downloads, 380,000 active users, and 19,000 open medical cases in the past 12 months. Such innovations ensure that travellers receive timely medical advice and care without disrupting their travel plans.
Improving customer service with AI
The industry is also working hard to improve customer service and the claims experience. ‘High-throughput claims’ is a process where claims within certain pre-agreed parameters can be paid without needing the underwriter’s sign-off. Supported by artificial intelligence (AI) technology, this process allows claims to be paid more quickly. AI can flag missing information in a claim’s paperwork and alert the customer, making the process more seamless. AI is also used as a fraud detection tool, scrutinising forms for signs of tampering. Claims departments are increasingly relying on this technology to ensure they only pay genuine claims, enhancing efficiency and customer satisfaction.
AI is having a significant impact on both travel and travel insurance. Booking.com* has predicted that AI is set to become a mainstream feature of travel, with 48% of travellers now trusting AI to plan their trips. This is demonstrated by Booking.com’s AI Trip Planner. In Latin America, Universal Assistance has introduced ‘Travel Tips with ChatGPT’ to the UA app, providing valuable information to travellers on security, tourism, transportation, and documentation.
Embedded insurance
Embedded insurance has evolved from a poorly integrated ancillary to a seamlessly integrated element of an overall digital value proposition. Travel companies increasingly offer a range of products and services, including insurance, that can be added to the online basket with a single click.
This year is poised to be exciting for travel and travel insurance providers as consumers continue to prioritise travel over other spending
Similarly, the banking industry has moved from the old model of insurance included but buried in the paperwork to seamlessly embedding travel insurance for premium account holders. Neobanks, with digital-first banking platforms, are leading the charge. In the past 12 months, Cover-More and parent Zurich Group have collaborated with insurtech Qover to introduce embedded worldwide travel cover.
A promising year for travel and insurance
This year is poised to be exciting for travel and travel insurance providers as consumers continue to prioritise travel over other spending. Despite rising inflation, cost-of-living pressures, and regional conflicts, travel remains a top priority. The pandemic has fundamentally changed traditional travel insurance, prompting providers to innovate and adapt.
A recent global study by Booking.com* captures this trend, predicting that travel today isn’t “just an escape, but a catalyst for experiencing our best lives”. Among the 27,000 global travellers surveyed, 68% say they transform into the best version of themselves when travelling. This insight underscores the evolving expectations of travellers, who now seek more than just leisure – they want personal growth and fulfilment from their journeys.
Insurance providers need to take the time to understand their customers’ needs and desires and develop products and services tailored specifically for them. By offering flexible, tailored products that provide value, security, and peace of mind, insurers can ensure an unforgettable experience for travellers.
It’s also worth pointing out that World Travel Protection, Cover-More’s in-house assistance company, has handled many tens of thousands of calls in its WTP UK Command Centre since its opening in 2023, with the majority of these calls relating to medical issues. It’s a timely reminder that while digital capability and tailored insurance is important, we mustn’t lose sight of the core and critical services we provide.
As we move forward, the travel insurance industry must continue to evolve, leveraging technology and customer insights to offer enhanced coverage, services and experiences. The focus should remain on creating value and ensuring the safety and satisfaction of travellers worldwide.
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