LONDON, Dec. 16, 2022 /PRNewswire/ — Consumer travel insurance markets have been closely impacted by the COVID-19 pandemic, with specific disruption to worldwide travel by older travellers. Each take-up charges and the sorts of coverage purchased have modified, and shoppers at the moment are extra conscious of the chance posed by pandemics.
Finaccord has launched a devoted consumer study throughout ten key markets, revealing in element how the travel insurance panorama has modified throughout totally different geographies and demographic teams.
Key findings embrace:
- As anticipated, there was big disruption to underlying travel markets: worldwide travel was most impacted, particularly amongst older travellers. The proportion of older travellers (55 plus) taking a visit overseas over a two-year interval fell from 44% to 22% between Finaccord’s earlier survey carried out in 2017 in contrast to its survey in 2022; this was a lot bigger than a drop of 46% to 38% in the 18 to 34 age band over the identical intervals. Home travel additionally suffered, although the decline was much less drastic than for worldwide travel.
- Consequently, the kind of coverage that travellers buy has modified: domestic-only insurance policies accounted for 1 / 4 of insurance policies acquired in the 2022 survey, up from 9% in 2017. In distinction, customary insurance policies fell from 73% to 44%, whereas all different non-standard insurance policies (e.g. for backpackers, older travellers or folks with pre-existing medical circumstances) had been marginally extra in style amongst insured travellers.
- Claims are up usually, although claims acceptance charges have remained secure: claims charges elevated to 14% in 2022 from 10% in 2017 as a mean for these ten international locations, with international locations like Canada and the UK seeing claims frequency double. Regardless of this, claims acceptance charges remained remarkably constant in most international locations. COVID-19 was an element in 56% of claims reported by respondents.
- Most shoppers are keen to pay extra for travel insurance in future: with the exceptions of France and the US, a majority of respondents in the entire international locations surveyed by Finaccord are keen to pay extra for travel insurance in the long run if it contains pandemic cowl.
Notes to editors:
Finaccord is a market analysis, publishing and consulting firm specialising in monetary providers that’s a part of Aon International Operations SE Singapore Department, part of Aon plc (NYSE: AON). It gives its purchasers with perception into and details about main points in monetary providers around the globe, with a specific deal with advertising and marketing and distribution.
Finaccord’s collection of studies investigates shoppers’ attitudes and behavior in relation to travel insurance and help in ten main international locations (Australia, Brazil, Canada, China, France, Germany, Italy, Spain, the UK and the US). It makes use of the outcomes of Finaccord’s survey of over 13,000 respondents to present perception on the important thing international travel insurance markets, utilizing nationally-representative samples.
To supply these studies, no less than 1,000 respondents had been surveyed in every of Australia, Canada, France, Germany, Italy, Spain and the UK, over 1,500 in Brazil and round 2,000 in every of China and the US. Respondents had been requested about travel that they had taken in the earlier 12, 24 or 36 months. For consistency with earlier studies and to seize the affect of the pandemic, solely solutions from respondents that had travelled in the earlier 24 months had been included in the survey evaluation.
Evaluation is offered in 5 primary fields: underlying travel developments, travel insurance uptake, traits of travel insurance insurance policies, consumer attitudes to travel insurance in the context of the pandemic, and claims developments.
SOURCE Finaccord, an Aon firm
