Travel agents play a key role in selling travel insurance, according to newly-released results of a consumer study conducted by the US Travel Insurance Association (UStiA). Consumers who plan their trips through…
Travel agents play a key role in selling travel insurance, according to newly-released results of a consumer study conducted by the US Travel Insurance Association (UStiA). Consumers who plan their trips through travel professionals are twice as likely to purchase travel insurance as those who book trips themselves.
In fact, 77% of those who work with a travel agent to book their vacation bought travel insurance, according to the UStiA survey.
The survey also found:
- If a traveler uses an agent in planning a trip (not necessarily booking), the odds of purchasing travel insurance increases by 98 percent.
- If a traveler uses an agent in actually booking a trip, the odds of purchasing travel insurance increases by 110 percent.
Why They Buy It
A number of factors make the purchase of travel insurance more likely, including:
- Longer trips
- More travelers in a group
- Significant pre-paid spending
- Purpose of travel: Those traveling for the purpose of visiting a destination or for a specific activity are more likely to buy insurance than those visiting friends and relatives
Travel Insurance Sales Triple
Prior to 9/11, according to UStiA, only 10% of leisure travelers purchased insurance, while today more than 30% of leisure travelers do. Their top three reasons for doing so are: peace of mind, protection against the unexpected, and concern over losing the financial investment in a trip.
Agents Profit from Travel Insurance Sales
According to Jon Ansell, UStiA President, travel insurance commissions are among the highest in the travel industry. Travel insurance offers a number of attractive benefits to both clients and agents. Selling travel insurance helps protect you against possible liability in case something unforeseen happens to your clients while traveling. At the same time it provides significant coverage and peace of mind in case of emergency or catastrophe, says Ansell.
People are now more knowledgeable about the unpredictable nature of their everyday lives, which can be affected by natural disasters, terrorism or even an illness in their family, so they are drawn to solutions that will mitigate these problems, continues Ansell. Savvy, experienced travelers and travel agents know the value of travel insurance and assistance, and use it to improve their overall travel experience.
Coverage Concerns
At the same time, we are concerned about how few people realize their healthcare policies provide very little, if any, out-of-country medical coverage, and some don`t cover you if you are traveling more than 100 miles from home, Ansell noted.
Among non-purchasers of travel insurance, two-thirds say conditions could arise that would cause them to buy travel insurance. Reasons cited as possible motivating factors were terrorist acts, aging, unforeseen events, travel to foreign countries, lost baggage concerns, weather and protecting the cost of the trip.
One out of Six File Claims
The survey revealed that 17% – or one out of every 6 persons – who buy travel insurance have actually filed a claim at some point. By comparison, the claim frequency rate for homeowners insurance in 2004 (last available date) was 7.3% – or – one out of every 14 policyholders, according to the Insurance Information Institute.
The 2006 Travel Insurance Consumer Survey, conducted online in late 2005, included 850 people who had taken at least one leisure trip of one night or more in the last 12 months.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
