Travel Insurance Industry Sees Radical Growth with the Burgeoning Demand
While going for a vacation or business trip, many travelers don’t think about the risks associated with traveling that can cost them money, time, and peace of mind. These risks include medical expenses, financial or other losses, emergency evacuation, trip cancellation, curtailment, accidental death or injury, delayed departure, delayed baggage, personal liability, and so on. Therefore, having a travel insurance in place is more important than ever as it rescues one from such situations, thereby minimizing the losses. A travel insurance is meant to cover travel risks incurred while traveling wither within one’s own country, or internationally. It can be arranged during trip booking to cover the exact period of the trip, or a more extensive insurance can be bought from travel insurance firms, travel agents, or travel suppliers. Travel insurance provides coverage for a variety of options such as student travel, business travel, leisure travel, adventure travel, and international travel.
At present, the market for travel insurance is burgeoning with the rise in tourism across the world, a rise in globalization, and an increasing travel rules & regulations. In addition, new technological developments open doors to new opportunities for the growth of the industry. Nonetheless, low penetration of insurance policies acts as an impediment to the growth of the market. A report published on travel insurance market says industry is expected to garner $32709.3 million by 2025, growing at a CAGR of 8.5% during the forecast period, 2018-2025.
With the demand for travel insurance rising, companies are launching new travel insurance services to cater to their needs. For instance, Ryanair launched its multi-trip travel insurance in February 2017 to meet the demands of their customers. In October 2017, Air Passengers Association of India (APAI) launched an air travel insurance facility through the Flysecure card for commercial passengers in India. In December 2017, Sterling Holiday Resorts Ltd. recently partnered with Go Digit General Insurance Ltd. to offer insurance cover to tourists from January 2018. AIG Singapore launched a new online travel insurance product called Travel Guard Direct in December 2017 that provides customers with important information about their destinations.
Ryanair Unveils Multi-Trip Travel Insurance
Ryanair, the Irish low-cost airline, partnered with Europ Assistance, a leading European insurance provider to introduce its annual multi-trip travel insurance product and support service at the same low prices Ryanair customers expect. The service is offered via its website, Ryanair.com. Customers have access to travel insurance on unlimited trips annually, with up to 28 days cover for each.
Air Travel Insurance Facility by APAI
Air Passengers Association of India (APAI), India’s top non-profit organization launched an air travel insurance facility via a membership card for commercial passengers in India. The flysecure card provides insurance coverage for loss or damage to luggage and for other risks during traveling, such as medical reimbursement, theft of identity, wallet loss and burglary at home while traveling. The medical reimbursement under the card would only be available if it’s reported to the medical authorities at the airport. It has a validity of one year covering unlimited domestic and international travel. Available for Indians aged between 18 and 70 years, the card provides three kinds of coverage to air passengers – silver, gold, and platinum. “Flysecure will be a game changer in the Indian aviation industry. We aim to rope in one million members over the next few years,” APAI National President Sudhakara Reddy said in a statement.
Sterling Holiday Resorts and Go Digit General Insurance Offer Insurance Cover
Sterling Holiday Resorts Ltd. tied up with Go Digit General Insurance Ltd. in December 2017 to offer insurance cover to tourists, starting January 2018. “We will be offering free, door-to-door travel insurance to our guests from January 1 onwards,” said Ramesh Ramanathan, managing director, Sterling Holiday Resorts Ltd. “It will be free for a year.” The insurance cover is said to be provided to members and non-members from departure to arrival.
Travel Guard Direct Launched by AIG Singapore
Travel Guard Direct is the new online travel insurance product launched by AIG Singapore in December 2017. By leveraging data, the product provides customers with real-time information about their destinations so that customers can better understand travel risks, and make informed decisions about the level of coverage they need. It is priced according to destination, duration, and age, so customers can take advantage of more effective pricing based on the risks involved.
Travel Guard Direct offers four plan types – Basic, Standard, Enhanced, and Supreme. Customers can opt for a return or one-way trip, while the Enhanced and Supreme plans include an add-on cruise vacation benefit, which provides customers with a cover on their cruise vacations by topping up as little as $3. The product also allows customers to submit and receive claims, as well as view price comparisons for a trip and annual policies on the company’s website.