To navigate through the competitive air travel landscape, airlines need to find new ways to increase revenue and protect themselves from future disruptions. One way to do this is by partnering with a travel insurance provider. But with so many options available, how can airlines ensure they’re choosing the right partner?
In this article, we’ll explore the 5 key factors airlines should consider when selecting a travel insurance partner.
Choosing a travel insurance partner starts with understanding the market’s size and potential. According to a report by Researchandmarkets.com (2020), the European travel insurance market is expected to grow at a CAGR of 7.4% during the period 2020-2024.
How many travelers are likely to purchase insurance through your airline? Are there any untapped segments of the market that your airline could target? Considering these questions, it only makes sense to look for a partner with a large and growing customer base, as it can offer more comprehensive coverage and better pricing.
Nowadays, it’s important to choose a partner that has a strong online presence—one that can seamlessly offer its services online using popular digital platforms. For example, a provider with a B2B2C insurance distribution model, which allows airlines to sell insurance policies directly to customers through their own website or mobile app. Choosing a travel insurance partner with this kind of system can help airlines increase revenue and improve customer experience.
Insurtech companies are disrupting the traditional insurance industry by leveraging technology to offer innovative products and services. Take advantage of this opportunity by partnering with a provider that is at the forefront of this trend. They are more likely to offer cutting-edge and up-to-date products and services that can help airlines stand out in a crowded market. Some examples of these services include digital claims management, usage-based insurance, and telemedicine.
The travel insurance industry is constantly evolving, with new players entering the market all the time. Many of these budding players may seem promising, but you need to be very careful as they may not be able to keep up with the competition in the long run.
It’s important to partner with a well-established provider to adapt to the fast-changing industry and stay ahead of the curve. This includes companies that are well-funded, have a strong management team, and have a clear vision for the future of travel insurance.
Airlines should look for a partner that offers a wide range of products and services. This includes traditional travel insurance products, such as trip cancellation and interruption coverage, as well as newer products like medical coverage for COVID-19 and other pandemics.
Additionally, airlines should look for a partner that is willing to work with them to develop tailored products based on their customers’ needs.
References:
Researchandmarkets.com. (2020). Europe Travel Insurance Market – Trends, Forecast, and Opportunity Analysis. Retrieved from https://www.researchandmarkets.com/reports/4655691/europe-travel-insurance-market-trends-forecast
Accenture. (n.d.). Digital insurance distribution. Retrieved from https://www.accenture.com/us-en/insights/insurance/digital-insurance-distribution
PwC. (n.d.). Insurtech disrupting insurance. Retrieved from https://www.pwc.com/gx/en/industries/financial-services/insights/insurtech-disrupting-insurance.html