Research shows opportunity for travel players to show insurance companies how it’s done
A new study, from insurtech company, Cover Genius, reveals that nearly half of UK consumers want peace of mind, simplicity and instant solutions when it comes to insurance, but providers are falling dangerously short of expectations. These new findings are cause for alarm as all the hard work done by the travel company to deliver the best travel experience, could be undone because of the inefficiency of an insurance claims process. The research opens up an interesting question for travel businesses – should they be looking more carefully at how to have better control over that moment when something goes wrong for their customer?
The survey of more than 2,000 respondents showed that nearly 50% of all frustrations consumers have with their insurance experience hang on two friction points, which are certainly not conducive to leaving the long-lasting positive memories that travel companies work so hard to achieve. The pain points mentioned are:
1) The time the claims process takes: of those who have made a claim, it has taken an average of 10 and a half weeks to be paid out.
2) Inconsistency of information and the stress of having to have multiple conversations to obtain information. The research found that 36% of adult consumers find chasing insurance claims to be stressful, with 27% of 18-24 year olds not even bothering to make a claim because they believe it to be a stressful process.
The travel sector has long been leading the way in terms of innovation, harnessing technology to deliver seamless customer-centric experiences. But the fact is, no matter how meticulous the planning and booking processes, sometimes, things can go wrong for the traveller, from cancelled flights to unexpected sickness. At that crucial moment, they rely on the insurance element to help them get them back on track – a process that many travel companies currently have little or no control over.
“When someone makes a claim, it’s because something has gone wrong in their life. They could be overseas, in unfamiliar territory, needing to get back: insurance companies should be alleviating their stress, not adding to it. Compared to other sectors like travel and finance, much of the insurance industry is dragging its heels when it comes to innovation and customer experience, and the sad fact for travellers is that this could ruin what was otherwise a fabulously planned trip. However, we are starting to see forward-thinking disruptors in the travel sector who are already starting to tackle this problem, offering their own travel insurance products that put the customer back at the heart of the experience, and shaking up the insurance sector with new tech-powered that make the roll-out simple and achievable.These two pain points are easily solved with technology, which consumers have already experienced in other industries, so it’s not surprising to find that there’s growing frustration and mistrust of the insurance ecosystem,” said CEO and co-founder, Cover Genius, Angus McDonald.
Key findings also show that consumers are ready for travel insurance pain points to be addressed:
- 45% would happily purchase bolt-on insurance for peace of mind
- Over a quarter want a simpler, streamlined claims process with a one-click bolt on service
- 36% of adult consumers find chasing insurance claims stressful
- On average, UK consumers who make a claim have to wait 74 days to be paid out
- 66% of 18-24 year olds and 67% of 25-35 year olds would pay more for instant pay-outs
“Instant payment technologies, streamlined booking processes and consistent information delivered to the palm of the hand have become second-nature solutions for most major travel players now. How this translates to a seamless customer experience is what provides travel companies with the best chance of engendering loyalty and repeat bookings. However, the concept in other industries where we see them moving towards managing an end-to-end experience is not a new one, and this research definitely shows opportunity for travel companies to own more of the components associated with travel – including offering a better approach to that all-important travel insurance policy. Travel players being able to apply the same cutting-edge, customer-centric approach to helping travellers when they need it most, will be a game-changer, and we are seeing how this is creating an increased positive impact on brand perception.”
While the research highlights the inadequacy of the insurance experience as a whole, there is good news and crucial learning to be taken from the findings: customers are willing to pay more, in return for a friction free and instant insurance solution.
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
