Changing attitudes fuel travel insurance growth



As flights across the Atlantic resume, following a 20-month ban, the travel industry is looking forward to recovery, and so too are travellers. Norms are changing, as are attitudes, and this is fueling a growth in travel insurance which looks set to continue beyond the pandemic.


Awareness shift towards travel insurance


In a recent survey, 96%* of respondents claimed,

...travel insurance cover was more important than ever before.

It’s something that many of us took out in the past, but quite often didn’t pay much attention to the tiny details. While others just completely forgot, or didn’t find it necessary to cover themselves in the event of something going wrong. Like a cancellation, stolen passport, or worse, a medical emergency.


These attitudes are changing since Covid-19. In the State of Travel Insurance findings, 41% said the pandemic was a primary motivator for them purchasing travel insurance more frequently.


People are becoming more conscious of getting stuck in a situation where travel insurance could be very beneficial. Ranging from changed travel plans to requiring medical assistance.


Hunger for freedom and flexibility

300% more travellers** have taken travel insurance out for this winter season than they did last year. That’s 70% more than 2019!


This growth is not only down to holidaymakers being more wary of the need for travel insurance. It is, however, also a direct result of the pandemic.


Who is travelling, and why, is also changing. As a hunger to get out and see the world develops, new types of travellers and customer segments are emerging. Early this year, 54% of people surveyed said the freedom and flexibility of being able to live and work while travelling the globe is more appealing now than it was prior to the pandemic.***


This goes beyond the regular tourist. It includes remote workers who choose to work where they please, students who want to experience university in another country, and the growing senior population who want to take extended vacations anywhere in the world.


Mandatory travel requirements

Another reason contributing to an increase in travel insurance purchases, and again attributed to the pandemic, is that some countries require visitors to have adequate cover before they can enter.


This has been a requirement for visitors to the Schengen area, from countries such as Russia, China and South Africa, since 2010. But now, an increasing number of countries are making it mandatory for visitors to have valid travel insurance, before they arrive, that specifically covers Covid-19 related medical treatment and hospitalisation costs. Singapore introduced this requirement in January 2021, with Israel, Thailand, Costa Rica and Tahiti introducing similar measures recently.


These different factors contributing to a growth in travel insurance indicate it’s not just a short-term rise when travel resumes to pre-pandemic levels. It looks like insurance companies have an opportunity to customise and target their products to these changing attitudes and new types of travellers.


Travel Support helps insurance companies all over the world with both medical and vehicle assistance in Europe. If you would like to know more about our services, don’t hesitate to get in touch.


Sources:

*Just Travel Cover

**Squaremouth

***Global Travel Trends Report, American Express



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