It is only natural for travelers to seek convenient and more accessible ways to purchase travel insurance products. That being the case, it is crucial for travel insurers and other players in the travel insurance industry to strategically position themselves across various purchase channels. Identifying and capitalizing on the right channels can greatly help these players expand their market reach and drive more sales.
In this article, we’ll explore the traditional and emerging purchase channels that travel insurance players must pay close attention to in order to remain competitive in the ever-evolving travel insurance landscape.
So, without further ado, let’s dive straight into them.
When it comes to distributing travel insurance products, traditional purchase channels have played a pivotal role in connecting travel insurance players with their target market. These well-established channels remain to be valuable partners for travel insurance players, granting them access to a broad customer base while instilling a sense of familiarity and trust.
It’s a given fact that travel agencies have long been a significant distribution channel. These agencies act as the liaisons between travelers and travel insurance providers, offering a convenient one-stop-shop experience for customers.
One of the many benefits of collaborating with travel agencies is the access to a wider market. Oftentimes, travel agencies have an extensive network of customers who greatly rely on their expertise to plan their next trips. Partnering with these agencies allow travel insurance players to tap into a broader demographic.
Travel insurance players can also expect to gain access to a plethora of information about the latest travel trends and customer preferences through their partnerships with travel agencies. These insights can help them enhance and tailor their offerings to meet the specific needs of different traveler segments.
For many customers, consulting an insurance broker is often perceived as the safest and most reliable approach when it comes to purchasing any type of insurance. This perception is not only attributed to their extensive knowledge of the insurance market, but also to their expertise in guiding customers to choose the best plans.
As the old adage says “strike while the iron is hot”, travel insurers should seize the opportunity to partner with insurance brokers to offer travel insurance products. Given their extensive experience in the industry, many of these professionals are among the most adept sellers of insurance products.
Undoubtedly, online purchase channels have transformed the way products and services are bought and sold, and insurance products are no exception. These platforms provide customers with convenience, accessibility, and a wide array of options.
Let’s take a look at three key online purchases in the travel insurance sector—insurance company websites, comparison websites, and online travel agencies. These channels offer more benefits and create additional opportunities for travel insurance players to expand their customer base, and boost their visibility.
In our latest research, titled Understanding USA Consumers’ Travel Insurance Needs, we found out that a large percentage of travelers prefer buying travel insurance directly from insurance company websites. This preference highlights the growing importance of insurance company websites as a key travel insurance purchase channel.
Insurance company websites serve as virtual storefronts of travel insurers, allowing them to showcase their insurance products and services to potential customers. A good insurance company website is more than just an information platform. It should also provide a seamless and user-friendly experience for customers to explore, compare, and purchase travel insurance policies right off the bat.
Travel insurers can capitalize on the potential of insurance company websites to effectively show the distinctive benefits and features of their offerings. Through these channels, they can showcase various coverage options, such as trip cancellation, medical expenses, and other add-ons tailored to specific travel needs. In addition, travel insurers can utilize website analytics tools to gain insights into customer trends and preferences, giving them data-driven insights on how to refine their products.
Online travel agencies (OTAs) have become major players in the travel industry, and they often incorporate travel insurance offerings to their booking process. Partnering with OTAs not only allows travel insurance providers to expand their market reach but also provides exposure to travelers who may not have considered buying travel insurance separately.
By integrating travel insurance into the booking process, OTAs can effectively educate customers about the significance of travel insurance while simultaneously improving the visibility and accessibility of travel insurance products.
Collaborating with OTAs also gives travel insurers insights into customer behavior and booking patterns. With these pieces of information, insurers can better understand customer needs and tailor their offerings to different types of travelers.
In addition to the traditional and online purchase channels, new and emerging channels are gaining popularity as key platforms for purchasing travel insurance products. These channels provide innovative approaches for customers to buy travel insurance, harnessing the power of technology and adapting to evolving customer preferences.
In today’s mobile-driven world, it’s crucial for travel insurance providers to recognize the potential of mobile apps as a powerful purchase channel. By developing their own dedicated mobile apps, insurers can establish direct connections with customers through their smartphones, offering a seamless and more personalized experience.
Mobile apps enable travel insurers to offer a user-friendly platform where they can present detailed information about their insurance products and services. Customers can easily browse through various coverage options, compare prices, and access policy details right at their fingertips.
As with other products, customers often turn to comparison websites to compare and evaluate multiple travel insurance options before making a final decision. This is why comparison websites are another effective travel insurance purchase channel. These channels consolidate information from various travel insurance providers, simplifying the decision-making process of customers as they are able to compare different insurance products on a single screen.
For travel insurers, appearing on reputable comparison websites like InsureMyTrip and Go Compare presents new avenues for exposure and customer acquisition. These websites offer them the opportunity to showcase their unique selling points and competitive benefits over their competitors.
Partnering with insurtech platforms also offers tremendous potential for growth and expansion of travel insurance companies. Most of these platforms provide a digital marketplace where customers can compare, customize, and purchase insurance products from various insurers.
By leveraging cutting-edge technologies, such as machine learning and artificial intelligence, insurtech platforms excel in delivering personalized and tailored experiences to customers. These platforms can recommend travel insurance plans based on individual travel profiles, preferences, and risk profiles. Acknowledging insurtech platforms as a key insurance purchase channel allows travel insurers to broaden their market reach and propel their growth within the landscape of travel insurance.
Digital wallets also hold significant potential as a purchase channel that travel insurers should embrace. Travel insurers can now leverage the growing popularity of mobile payment apps like Google Pay, Apple Pay, and PayPal to access a larger user base and offer more convenient and seamless purchasing experience for travel insurance products.
By integrating digital wallets to their existing platforms, travel insurers can provide a more familiar and secure environment for customer transactions. Customers can easily browse and select the coverage that suits their needs, review policy details, and complete transactions with just a few simple taps.
Without a doubt, social media platforms are becoming the most effective marketing channel for almost any type of product. Having billions of users worldwide, platforms like Facebook, Twitter, and Instagram provide travel insurers with an opportunity to connect with a vast audience and promote their travel insurance products.
Social media platforms offer numerous benefits for travel insurance companies. Firstly, they offer a direct channel for insurers to engage with potential customers, fostering brand awareness and trust through interactive content. Another benefit is that, these platforms enable travel insurers to target specific demographics and interests, ensuring that they reach potential customers who are more likely to be interested in travel insurance. Insurers can tailor their advertising campaigns to reach individuals based on factors such as travel habits, destinations, and age groups.
This article has explored traditional and emerging purchase channels that are crucial for travel insurance players to consider. Travel insurance players must strategically position themselves across these diverse purchase channels to meet the evolving needs and preferences of customers. By embracing innovation, leveraging technology, and partnering with key players in the industry, travel insurers can expand their customer base, drive growth, and provide a seamless and accessible experience for travelers seeking travel insurance products.