2018 predicted to be the year travel insurance convergence really takes-off
Travel insurance technology expert, Aquarium Software, predicts that 2018 will be the year that technology and travel insurance will converge as never before. With growth in the US travel insurance market set to bring its value to nearly $3.5 billion, one key influencer of this will be the increasing consumer demand for fully comprehensive polices, given external market drivers – including extreme weather; terror threats; and changing demographics.
“The key travel sector triggers, those for travel insurance by implication, will be the continued impact of global warming; terrorism; and in the UK specifically, Brexit,” said Aquarium Software Director, Mark Colonnese. “Events with roots in 2017 will continue to impact travel trends for the foreseeable future - while the boom in ‘silver surfer’ travel is matched only by ‘generation backpack’, and the increasing role technology plays in the travel insurance customer journey,” Mark added.
2017 was one of the hottest years ever recorded and saw extremes of weather disrupting travel plans. Cuba proved no match for Hurricane Irma. Terror attacks remain a grave possibility, with atrocities seen in popular tourist destinations. Brexit throws up more questions than answers, not least, the future of the European Health Insurance Card (EHIC), with all set to contribute to future growth in travel insurance. The high price of travel insurance for the over 70s has seen Baby Boomers not declaring medical conditions, or not having cover at all; but falling premium prices, coupled with an awareness of the risks of no cover is driving a change in attitudes and encouraging more into the market. At the other end of the spectrum, price comparison site savvy-millennials and the rise of extreme travel is making adequate, journey-specific insurance more essential than ever.
“Golden years gadabouts and gap year globetrotters are driving the growth of the travel insurance sector both sides of the pond in 2018,” added Mark. “Many first-time travel insurance buyers entering the market will be doing so online, and the challenge for the industry is to cater for ever-changing consumer expectations, especially at the younger end of the market,” Mark concluded.