Gaining a deep understanding of consumer needs and preferences when it comes to travel insurance is crucial for travel insurers and industry players alike. To shed light on this important topic, we conducted extensive studies in four distinct markets—the United States, Singapore, Canada, and France. These research endeavors aimed to dig into the travel habits, factors influencing purchase decisions, preferred product benefits and services, distribution channel preferences, as well as claims and assistance expectations of consumers in each market.
In this article, we will explore and analyze some of the significant findings that emerged from each study.
The US market study revealed that American travelers have shown an increasing interest in travel, with plans to embark on multiple trips throughout the year. This presents a crucial opportunity for the travel insurance industry. Let’s take a look at some of the important insights from our study on the US market:
Travel has become a popular activity among Americans, with the majority planning 2-3 trips per year. This indicates a strong demand for travel-related products and services, including travel insurance.
According to our research, American consumers exhibit a range of preferences when it comes to travel insurance brands, with some expressing loyalty to specific brands while others are open to exploring options from banks and other providers.
While insurance coverage remains a primary concern for many Americans, they also take into account factors like cost, policy features, and the reputation of the insurance provider. Additionally, incentives such as complimentary travel-related services, discounts, and promotions play a significant role in influencing Americans’ choices when selecting travel insurance.
Over the course of a year, American travelers have experienced a shift in their priorities regarding travel insurance coverage. While the importance of Covid-19 coverage remains prevalent, there is also a growing demand for additional services that cater to emergency situations like flight delays and health emergencies.
Travel insurance providers can effectively meet the evolving expectations of American travelers by adapting their offerings to include these preferences, providing comprehensive support during unforeseen events.
Travel players have become influential distribution channels for insurance providers in the US, offering more than just competitive pricing. Beyond pricing, there are factors that play an important role in motivating Americans to purchase travel insurance through these channels.
Travel insurers need to understand and address the needs of uncertain travelers while enhancing their offerings to cater to the evolving preferences of American travelers.
Ensuring efficient and prompt resolution of claims-related issues is essential for satisfying American travelers and providing a positive travel insurance experience. Americans have clear expectations regarding the settlement timeframes for their claims and the availability of alternative payout methods.
Travel insurers should streamline their claims processes, consider offering alternative payout options, and prioritize factors such as transparency, responsiveness, and effective communication to meet the needs of American travelers. By doing so, insurers can enhance the overall claims experience, exceed customer expectations, and foster greater satisfaction among American travelers.
Our study on the Singapore market uncovered notable insights into the travel habits, preferences, and expectations of Singaporean travelers regarding travel insurance. Here are the key findings:
The majority of Singaporean travelers expressed their willingness to purchase travel insurance plans for their trips in 2023. Among the factors influencing their purchase decisions, price emerged as the most important consideration, closely followed by the ease of online claims.
Insurers’ reputation and plan personalization are just some of the primary factors influencing Singaporean travelers when purchasing travel insurance plans. Affordable and flexible plans are highly prioritized, especially among the younger generations. On the other hand, policy exclusions, lack of transparency, and difficulties in filing online claims were identified as the top challenges faced by travelers when buying travel insurance.
Singaporean travelers value certain product benefits and services. Travelers prioritize flight delay payout and airport lounge access to address potential flight disruptions, while real-time safety alerts and location tracking are important for those seeking accident and medical emergency coverage.
In the Singapore market, travel players, such as airlines and online travel agencies, are also highly regarded as a distribution channel for travel insurance. Travelers rely on these channels to access and purchase travel insurance plans. Therefore, it is crucial for insurers to establish strong partnerships with travel players and ensure seamless integration of insurance products within their platforms.
Many of Singaporean travelers anticipate their claims to be addressed within two weeks, while some expect resolution within 2-4 weeks. Prompt payment issuance is also expected, with older travelers having the highest expectation of receiving payments within a week. These findings emphasize the importance of efficient claims resolution and timely payment processes to ensure customer satisfaction and loyalty.
With a growing awareness of the importance of travel insurance, Canadians are becoming more proactive in protecting themselves during their trips. Here are some insights from our study on the Canadian market:
Our study on the Canada market reveals several key insights into the purchase influencing factors among Canadian consumers. A significant percentage of Canadians express their desire to purchase travel insurance for their vacations in 2023. This finding indicates a growing awareness of the importance of travel insurance in mitigating risks during travel.
Pricing is a crucial consideration for Canadians when purchasing travel insurance. However, other factors such as brand reputation, coverage options, and ease of online claims also influence their decision-making process. Canadians value reputable insurance providers that offer comprehensive coverage and user-friendly claims processes.
There are also coverages that are highly prioritized by Canadian travelers. Some of them include trip cancellation and interruption coverage, as well as emergency and medical expenses. These findings align with the need for financial protection in case of unforeseen events or emergencies during their trips.
Canadian travelers also express a strong desire for additional services that enhance their travel insurance experience. Services such as 24×7 telemedicine support and real-time safety alerts are highly valued.
In the Canadian market, travel players play a significant role as a distribution channel for travel insurance. Many Canadians express their desire to purchase travel insurance through travel players, such as airlines and online travel agencies. The availability of embedded travel insurance within these platforms offers added convenience and accessibility for Canadian travelers.
Similar to travelers from other regions, Canadian travelers also expect swift resolutions for claims-related issues. Timely and efficient claims processing is key to satisfying their needs and ensuring customer satisfaction.
Our research on the France market also yielded valuable insights regarding the preferences and behaviors of French travelers. While there is a segment of French travelers who prioritize having travel insurance for their trips, others remain hesitant. Here are some key insights:
While it is true that many French travelers prefer not to buy travel insurance, we cannot ignore the fact that there is still a sizable portion, particularly Baby Boomers, who prioritize having travel insurance for their trips.
Similar to travelers from other regions, French travelers also face challenges such as health and safety concerns, as well as travel delays and cancellations. These factors contribute to their consideration of purchasing travel insurance as a means of mitigating potential risks during their travels.
French travelers have specific preferences in their travel insurance plans. The study indicates that French travelers highly value added benefits such as Cancel For Any Reason coverage, which provides them with the flexibility to cancel their trip for any unforeseen circumstances, and also emergency and medical expenses coverage.
Furthermore, French travelers expressed a strong interest in having added services included in their travel insurance, such as automatic flight delay payout and easy online claims submission.
Many French travelers express a desire to purchase embedded travel insurance through travel players. The availability of travel insurance options via these channels offers several advantages that resonate with French travelers.
Extra perks, such as discounts or bundled offers, contribute to their decision to purchase from travel players. This highlights the importance for travel insurance providers to establish strong partnerships with travel players to tap into the French market effectively.
The efficiency of claims processing plays a crucial role in shaping the satisfaction levels of French travelers with their travel insurance. A significant number of French travelers express a high degree of contentment with their claims experience, indicating that insurance providers are meeting their expectations in this regard. This underscores the significance of maintaining streamlined and prompt claims processes, transparent communication channels, and exceptional customer service.
By prioritizing these aspects, insurance providers can ensure the ongoing satisfaction and loyalty of French travelers.
Our studies on the travel insurance markets in the United States, Singapore, Canada, and France have provided valuable insights into consumer behavior and preferences. Across these markets, factors such as pricing, brand reputation, coverage options, and ease of claims exert considerable influence on consumers’ purchase decisions.
Travel players, including airlines and online travel agencies, serve as important distribution channels for travel insurance products, offering convenience and additional perks to consumers.
By understanding the specific needs and preferences of consumers in each market, travel insurance providers can tailor their offerings to effectively meet customer demands. This includes providing comprehensive coverage, user-friendly claims processes, and value-added services that enhance the overall travel insurance experience.