LONDON, Dec. 16, 2022 /PRNewswire/ — Shopper journey insurance coverage markets have been closely impacted by the COVID-19 pandemic, with explicit disruption to worldwide journey by older travellers. Each take-up charges and the varieties of coverage purchased have modified, and shoppers at the moment are extra conscious of the chance posed by pandemics.
Finaccord has launched a devoted client examine throughout ten key markets, revealing intimately how the journey insurance coverage panorama has modified throughout completely different geographies and demographic teams.
Key findings embrace:
As anticipated, there was enormous disruption to underlying journey markets: worldwide journey 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 comparison with its survey in 2022; this was a lot bigger than a drop of 46% to 38% within the 18 to 34 age band over the identical durations. Home journey additionally suffered, although the decline was much less drastic than for worldwide journey.
Because of this, the kind of coverage that travellers buy has modified: domestic-only insurance policies accounted for 1 / 4 of insurance policies acquired within the 2022 survey, up from 9% in 2017. In distinction, normal insurance policies fell from 73% to 44%, whereas all different non-standard insurance policies (e.g. for backpackers, older travellers or individuals with pre-existing medical situations) have been marginally extra standard amongst insured travellers.
Claims are up typically, although claims acceptance charges have remained steady: claims charges elevated to 14% in 2022 from 10% in 2017 as a median 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 a think about 56% of claims reported by respondents.
Most shoppers are prepared to pay extra for journey insurance coverage in future: with the exceptions of France and the US, a majority of respondents in the entire international locations surveyed by Finaccord are prepared to pay extra for journey insurance coverage sooner or later if it consists of pandemic cowl.
Notes to editors:
Finaccord is a market analysis, publishing and consulting firm specialising in monetary providers that’s a part of Aon World Operations SE Singapore Department, part of Aon plc (NYSE: AON). It supplies its shoppers with perception into and details about main points in monetary providers all over the world, with a selected deal with advertising and marketing and distribution.
Finaccord’s collection of reviews investigates shoppers’ attitudes and behavior in relation to journey insurance coverage 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 supply perception on the important thing international journey insurance coverage markets, utilizing nationally-representative samples.
To provide these reviews, no less than 1,000 respondents have 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 have been requested about journey that they had taken within the earlier 12, 24 or 36 months. For consistency with earlier reviews and to seize the influence of the pandemic, solely solutions from respondents that had travelled within the earlier 24 months have been included within the survey evaluation.
Evaluation is supplied in 5 essential fields: underlying journey developments, journey insurance coverage uptake, traits of journey insurance coverage insurance policies, client attitudes to journey insurance coverage within the context of the pandemic, and claims developments.
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SOURCE Finaccord, an Aon firm