Travel Insurance Sales Could Be Supercharged Once Vacationers Return
Photo Credit: A TUI Sensatori resort in Ibiza. TUI is one of several travel companies experimenting with more flexible travel insurance via leading insurance issuers. TUI Group / Mar Torres Photography
Skift Take
Coronavirus infections are rising again in many Western nations. But some travel companies hope the impact on vacation planners will be far less than in previous surges, thanks partly to sales of new and more flexible travel insurance policies.
Travel insurance was a product or upsell that only a minority of vacationers bought in most countries before the pandemic. But many insurers — and the travel brands that resell their high-margin products — are hoping to see travel insurance sales boom once vacationers return to booking trips in large numbers.
So many insurers are racing to make their policies more flexible in an attempt to court the potential demand in a market that could hit $45 billion in six years.
"Insurance has traditionally been way behind with respect to digital innovation and customer experience," said Jeremy Murchland, president of Seven Corners. "This crisis gave insurers and resellers time to pause and reassess how they're selling travel insurance and to improve their digital games."
Exhibit A: When TUI Group recently launched marketing campaigns to woo travelers, the Germany-based tour operator collided with the latest twist in the pandemic, which threatened fresh lockdowns in France and other
