Beyond COVID: What role can InsureTech play in the travel insurance landscape?

By: Omar Abdul-Hafiz

It is no exaggeration that 2020 was a big, unexpected super blow to the global travel industry as a whole. According to the latest data from the UNWTO World Tourism Barometer, “international tourist arrivals fell by 72% in January-October 2020.” This plunge had manifested in restrictions on travel and low consumer confidence. Furthermore, it ignited a global struggle to contain the COVID-19 virus. These factors alone easily made it the worst year for tourism ever recorded.

But amidst all these harsh events, there is always a gleam of hope. With vaccines going into action already, we can already see the light at the end of the tunnel. And this is a big chance for us to learn a lesson or two for the future.

In an article last updated on 25th January 2021, Jason Metz from Forbes Advisor touches upon a number of challenges facing the travel insurance market in the aftermath of COVID-19. Let us then discuss each of Metz’s interesting points and explain how good Travel Insurance software can help resolve them faster.

 

Better experience for young travellers

Metz then raises an interesting point that since most seniors are staying home, the travel market is now pretty much dominated by young travellers. Before COVID-19, Metz explains, travel insurance was largely bought by travellers 50 years of age and older. Nowadays, however, the vast majority of travel insurance buyers are under age 50. Interestingly enough, as digital technology is ingrained in these young people’s daily lives, they naturally expect it to manifest even in the way they buy their insurance coverage, especially travel and medical.

This, in turn, calls for the need to utilize state-of-the-art insurance software and technology that offers clients with a digitalized experience, enabling them to carry out all their insurance needs online. In other words, they should not be required to visit the physical branch of an insurance agency, or even call them on the phone, unless absolutely necessary. And this not only makes it more convenient for them, but it also minimizes the crowdedness at the physical branches, thus contributing to social distancing. It also minimizes the load on the agency’s branches and call centres.

Furthermore, establishing an integrated digitalized insurance management system is guaranteed to boost the speed of claims processing significantly. This will allow clients to manage their travel insurance matters remotely if needed regardless of where they are or when. This flexibility, in turn, would make your clients feel much happier as they see their insurance affairs run much faster than before.

Last-minute flight cancellations

One main issue facing international travel amidst the COVID pandemic is the volatility in which the virus spreads. This causes governments to announce urgent and abrupt limitations on, for example, the number of passengers allowed on one flight. This, in turn, may cause airlines to take urgent decisions to cancel certain flights.

This is where travel insurance agencies can face a tricky situation. An upset client whose non-refundable flight has just been cancelled may submit a trip cancellation claim. Now, repeat this situation over a number of upset clients who faced similar situations, and chances are your travel insurance company is inundated with reimbursement claims waiting to be processed. And in a traditional, paper-intensive system, going through all these claims can take a lot of time and resources. But it does not have to be that way anymore.

Utilizing a powerful travel insurance management software can reduce the time it takes to process all these claims significantly.

 

What does this mean for travel insurance?

The travel industry, of which travel insurance is a critical component, has been among the most affected sectors by the COVID pandemic. This fact makes it one of the critical sectors where a resilient and future-proof business infrastructure is of utmost importance.

Furthermore, maintaining a competitive edge in the travel insurance market will depend more and more on the insurance providers’ ability to provide a crème-de-la-crème customer experience. This involves being constantly up-to-date on the latest insurance demands and quickly devising new policies that cover these demands. Also, insurers are expected to pay more attention to how to provide a more comfortable user experience for their customers through mobile apps and customer portals.

Building on these lessons moving forward will provide insurance providers the resilience they need to endure future challenges. Moreover, such companies will have the trust and loyalty of their customers to gain for being there for them during difficult times.

To learn more about ESKADENIA’s travel insurance software, ESKA Travel, click here.