In recent years, European insurtech companies have completely transformed the travel insurance industry. By implementing groundbreaking technology, they are able to provide customers with tailored products that meet their individual needs and enable them to customize an insurance policy according to their specific travel demands.
In this article, we’ll explore the insurtech landscape in Europe and its implications for the future of travel partnerships. We will also uncover how insurtech companies are disrupting the traditional insurance market and revolutionizing the way we travel.
The term “Insurtech” is a combination of two words—insurance and technology. It refers to the technology that innovates and streamlines traditional insurance processes. Since the inception of this technology, many insurtech companies have incorporated technological advancements, such as machine learning, artificial intelligence to transform the travel insurance industry. Because of insurtech, travel insurers have been able to design insurance products that are more flexible, personalized, and cost-effective.
The travel sector has been one of the most prominent beneficiaries of insurtech transformation. For travelers, having insurance is an essential part of their journey and now that insurtech businesses have created products which are more customized to each individual traveler’s specific requirements, it’s become increasingly easier for them to get what they need.
One way insurtech companies have disrupted the travel insurance market is by creating products that are more flexible. Traditional travel insurance policies were often “one size fits all,” with a set of standard terms and conditions. With insurtech, insurers have revolutionized the travel insurance industry by creating comprehensive products that can be tailored to each individual’s unique needs. These user-friendly policies are easily customizable, making them an ideal choice for travelers of any kind.
Insurtech companies have also made trip insurance more accessible to customers. The traditional method of purchasing travel insurance was often time-consuming, requiring customers to visit an insurance broker or purchase insurance at the airport. Fortunately, insurtech companies have revolutionized the entire insurance buying process with a quick, simple and more efficient process. Customers can now purchase travel insurance from the comfort of their homes or while on the go, using their mobile phones.
Europe has become a hub for innovative insurtech firms and the European insurtech market is booming, with an influx of new startups upsetting established insurance providers. A recent S&P Global report projects that this sector in Europe will reach $10 billion by 2025, making it one of the most promising markets to watch over the next few years.
The surge of insurtech in Europe can be credited to many factors; one major factor being the rising number of millennial tech users who favor purchasing insurance online. Furthermore, the European insurance sector has long been subject to stringent regulations that have limited traditional insurers’ ability to innovate quickly and launch new products. However, insurtech companies have been able to bypass these regulatory hurdles and create products that meet the changing needs of the modern-day consumer.
The insurtech industry in Europe is prepared to progress further, and it’s evident that insurtech companies will persistently shake up the conventional insurance sector. According to a report by Willis Towers Watson, 80% of insurance executives believe that insurtech will have a significant impact on the industry in the next five years.
Insurance technology is predicted to bring about a major shift in how travel partnerships are formed and operate. Travel companies are beginning to recognize the benefits of partnering with insurtech companies to offer customized insurance products to their customers. By joining hands with insurtech companies, travel companies can provide their customers more tailored insurance solutions that align with their distinct traveling needs. This could lead to higher customer satisfaction and trustworthiness in the long run.
The European insurtech industry is growing exponentially and has had an incredible influence on the travel insurance market. Thanks to technology, travel companies are now providing more individualized, cost-effective, and more efficient services. To stay ahead of the game, travel value chain partners should collaborate with companies offering insurtech as a service in order to gain access to their knowledge and cutting-edge tools, allowing them to offer improved products as well as optimal customer experiences.
References:
Accenture. (2019). Insurtech in Europe: An Overview. Retrieved from https://www.accenture.com/gb-en/insights/insurance/european-insurtech-market
S&P Global. (2019). European Insurtech Trends to Watch. Retrieved from https://www.spglobal.com/marketintelligence/en/news-insights/research/european-insurtech-trends-to-watch
Willis Towers Watson. (2018). Insurtech Outlook 2018. Retrieved from https://www.willistowerswatson.com/en-US/insights/2018/02/insurtech-outlook-2018