As flights across the Atlantic resume following a 20-month ban, the travel industry is looking forward to recovery, and so too are travellers. Norms are changing, as are attitudes, and this is fueling a growth in travel insurance which looks set to continue beyond the pandemic.
In a recent survey, 96% of respondents stated that travel insurance cover is more important than ever before.
Awareness shift towards travel insurance
It’s something that many of us took out in the past, but quite often didn’t pay much attention to the finer details. Others completely forgot about it, or didn’t consider it necessary to cover themselves in the event of something going wrong, such as a cancellation, stolen passport, or worse, a medical emergency.
These attitudes have been changing since Covid-19. In the State of Travel Insurance findings, 41% said the pandemic was a primary motivator for them purchasing travel insurance more frequently.
People are becoming more conscious of getting stuck in situations where travel insurance could be very beneficial, ranging from changed travel plans to requiring medical assistance.
Hunger for freedom and flexibility
There has been a 300% increase in travellers taking out travel insurance for this winter season compared to last year. This marks a 70% rise from 2019!
This surge is not solely due to holidaymakers being more cautious about the necessity of travel insurance; it is also directly influenced by the pandemic.
The demographics and motivations of travellers are also evolving. As the desire to explore the world grows, new types of travellers and customer segments are emerging. Earlier this year, 54% of respondents in a survey indicated that freedom and flexibility of living and working while travelling globally are now more appealing now than before the pandemic.
This trend encompasses more than traditional tourists. It includes remote workers who opt to work from anywhere, students seeking international university experiences, and a growing senior population looking to enjoy extended vacations worldwide.
Mandatory travel requirements
Another factor contributing to the increase in travel insurance purchases, attributed to the pandemic, is that some countries now mandate visitors to have adequate cover before entry.
Since 2010, visitors to the Schengen area, including those from countries like Russia, China, and South Africa, have been required to have valid travel insurance. Recently, more countries are making it mandatory for visitors to have insurance that specifically covers Covid-19 related medical treatment and hospitalisation costs before arrival. Singapore implemented this requirement in January 2021, and Israel, Thailand, Costa Rica, and Tahiti have followed suit more recently.
These various factors driving the growth in travel insurance suggest it’s not just a short-term trend as travel resumes to pre-pandemic levels. Insurance companies have an opportunity to tailor and target their products to these evolving attitudes and the needs of new types of travellers.
Travel Support helps insurance companies all over the world with both medical and vehicle assistance in Europe. If you would like to know more about our services, don’t hesitate to get in touch.
