Travellers demand integrated, digital and event-based insurance
23-12-22
Companjon, a leading European technology company specialising in the development and underwriting of integrated insurance, today announced key findings from its fourth comprehensive consumer report on insurance and the travel industry. The report uncovers consumers' changing behaviours and demands towards embedded insurance when booking travel experiences.
Embedded Insurance: Driving The Travel Industry's Top And Bottom Lines is the latest report and is part of an ongoing annual series. Companjon commissioned global data and information firm Dynata to survey more than 5,000 participants in the major European markets (France, UK, Germany, Italy and Spain) in Q3 2022.
Integrated travel-related insurance products prove to be an ancillary revenue opportunity for online travel companies, as consumers in general showed a strong appetite for coverage that offers flexibility and is event-triggered. These high performing products include cancellation for any reason (90%), baggage loss insurance (85%) and delay insurance (84%).
Like last year's report, it shows that the majority of consumers, particularly those aged 25-44, would consider buying integrated insurance primarily because of the automated claims processing, instant fixed payouts and reliability of service. Not surprisingly, millennials are recognised for their hyper-connectivity and digital expectations when it comes to purchasing goods and services.
The reliability of integrated insurance, that it is easy to understand what is covered and a seamless claims experience were the most compelling features for consumers to favour integrated insurance over traditional insurance.
Other insights relevant to the travel and activities industries:
Embedded insurance influences switching behaviours in travel and mobility users, with 64% likely to switch providers if offered cancel for any reason, 58% if offered lost luggage insurance and 56% if offered delay insurance.
More than 40% of consumers would choose built-in insurance if it gave them the flexibility to cancel the purchase and receive an instant refund.
Consumers favour built-in insurance as an enhancement to or included with their ticket.
"Customers see the relevance of digitised insurance products and demand that they are offered to them during the purchase process on their favourite booking platforms," said Companjon CEO Matthias Naumann.
"As our own partners see it, insurance products that are integrated and digitised throughout the entire user journey enable them to earn new revenue. In a world where digital is paramount, global platforms must rethink the role that integrated insurance can play in enhancing customer experiences, increasing loyalty and driving greater revenue.
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