“Turbulent years” could be the term that we can use to describe the upcoming years of the travel insurance industry. But contrary to how bad it sounds, the term is actually a perfect way to illustrate how the future of travel insurance will be filled with eruptive developments. At the onset of the post-pandemic world, emerging trends have begun reshaping the way travel insurers cater to the needs of travelers, and this progress shows no sign of slowing down, but rather is poised to continue soaring.
Let’s find out in this article about some of the most exciting emerging trends in travel insurance and how they can impact the future of travel.
Technology is at the forefront of every progress, and this is also the case in the travel insurance industry. Because of the evolving needs and preferences of travelers, travel insurance companies are continuously seeking ways to improve their processes and services through the use of technology. Let’s take a look at some of the most promising technological advancements within the industry today.
The claims process is a critical aspect of travel insurance, and it’s often what makes or breaks the relationship between a travel insurer and its customers. This is the prime reason why travel insurance companies heavily invest in technology to make their process more efficient and hassle-free.
One notable advancement in this area is the introduction of Robin Assist, or simply Robin—a cutting-edge service platform for processing travel insurance claims. Designed by battleface, Robin uses data analysis and automation to streamline the claims process, eradicating the need for manual claim process and simplifying the identification of covered expenses. With Robin, filing a claim becomes a seamless experience for policyholders as it quickly identifies the policy in question and the specific expenses eligible for reimbursement.
Robin is just one of the many emerging technologies in travel insurance. In fact, many of the travel insurers nowadays are also investing in mobile apps and online platforms.These platforms provide travelers more efficient ways to manage their insurance policies, receive real-time updates, and file claims conveniently through their smartphones.
Along with the advancement of claims processing, travel insurance providers are also in the process of upgrading their online claims portals. These portals enable travelers to check the status of their claims digitally, and provide them a more convenient way of submitting necessary documents whenever needed.
Travelers and insurers share a common sentiment—to reduce the amount of paperwork, since paperwork can be very frustrating especially when filing claims. By reducing the need for physical paperwork and allowing policyholders to handle claims process online, travel insurers can accelerate the processing time and facilitate a faster reimbursement or assistance.
Travel insurance apps are becoming more intuitive and intelligent. Many of these apps now have the feature to detect when a traveler engages in activities that may not be covered in their insurance policy. With this capability, travel insurance providers can instantly notify the travelers of the potential risks they may face and offer them the option to purchase additional coverage. Such is the case for World Travel Protection, a leading travel protection company.
Blockchain technology is relatively new in the travel insurance sector but it’s already starting to show tremendous potential. While most people would think that blockchain is all about paying through cryptocurrencies, its application actually goes far beyond that.
For example, this technology can be utilized to detect flight delays and automatically issue policies and execute payouts. Etherisc, a decentralized insurance platform, has been making strides in developing this type of technology over the past few years. It’s only a matter of time before travel insurance companies will adopt similar blockchain-based solutions to streamline their operations and offer more efficient and customer-centric services.
Travel insurers are becoming more adaptable to the rapid changes in the industry. In recognition of the ever-changing needs of travelers, insurers are coming up with more innovative and flexible approaches to offer customized policies. This shift towards customization ensures that travelers have the right level of coverage for their unique needs.
According to Adam St. John of Sitata, in an article published by Forbes, there is a growing inclination towards personalized policies as insurers acknowledge that the traditional one-size-fits-all approach does not adequately meet the needs of today’s travelers. Most travel insurers agree on this notion and that’s why, we can expect to see more policy customizations in the next few years.
Allianz Partners’ study on the current trends in travel insurance also highlights the increasing demand for insurance that meets specific individual needs. It was revealed in their study that travelers are seeking coverage tailored to their unique preferences and travel patterns. This trend has forced travel insurers to develop new flexible policies to accommodate such travelers, emphasizing the importance of customization.
There is also an increasing demand for insurance policies that offer expanded coverage. A perfect example is the idea of having coverage for “workation”, a new trend of working while traveling. Travelers will eventually seek insurance policies that also offer this coverage as many of them are embracing the idea of working remotely.
The pandemic has led travelers to become more frugal in their expenditures, even in their insurance plans. Travel insurers have adapted by providing cost-effective solutions. One notable trend within the industry is the Cancel Anytime upgrade introduced by Allianz Travel Insurance.This is an upgraded “cancel for any reason” option that allows travelers to get up to 80 percent reimbursement for lost nonrefundable trip costs in the event of almost any unforeseeable reason that is not yet covered by their plans. Solutions like this allows travelers to optimize their coverage and costs based on their specific travel plans.
The advancement of technology also means further expansion in policy customization. From AI-driven policy recommendations to coverage based on real-time activities, personalized policies will become more sophisticated and tailored to individual travelers. The increasing adoption of technology, as seen with Robin’s streamlined claims processing, will likely contribute to a more seamless and efficient process for customizing insurance plans.
The future outlook for travel insurance appears promising with all the emerging trends discussed previously. The emergence of technological advancements, such as more streamlined claims processing and smarter travel insurance apps, is set to revolutionize the way travelers access and manage their insurance coverage. Innovations like the Robin Assist and blockchain technology are driving efficiency, ensuring policyholders can easily navigate the claims process and receive timely assistance.
What’s more, the growing demand for customized policies and expanded coverage options reflects the evolving needs and expectations of modern travelers. Travel insurance providers have become more focused on tailoring policies to suit individual preferences.
As the travel insurance industry continues to innovate, travelers are gaining more confidence in exploring the world, knowing that they are well-protected by policies tailored to their unique needs.