Insurance Archives - Page 20 of 67

July 8, 2022

Should you get travel insurance for your next big trip?

If you are hitting the streets, waterways and skies now that pandemic vacation constraints have eased, it’s possible you’re wanting to know whether or not travel insurance policy is truly worth the extra price tag.

If you’re hitting the streets, waterways and skies now that pandemic vacation restrictions have eased, probably you’re wondering whether vacation insurance coverage is worthy of the additional cost — especially since most every little thing prices extra these times which include airfares.

CBS Information Journey Editor Peter Greenberg said before you get vacation insurance policies, just take time to recognize the different types that are offered.

“The most prevalent is a little something called journey cancellation and interruption insurance coverage. And in idea, if your flight is canceled, or you get unwell, and you cannot go, it allows you to get your money again from that investment,” Greenberg informed WTOP.

But it can be challenging to know exactly what coverage you are finding.

“As quite a few people knowledgeable for the duration of the pandemic, specially if you make your reservations on line, you just cannot finish the transaction unless of course you either opt in or decide out of the travel insurance policies, and you never know what you are protected for — and even worse, you really do not know what you’re not coated for,” he said.

Greenberg suggests obtaining travel insurance coverage primarily if you’re paying a whole lot of cash — say, $3,000 or additional.

On the other hand, he does not recommend getting these insurance plan as the kind of increase-on produced offered though purchasing an airline ticket on the web.

“Don’t do it on line,” he claimed. “Go to a travel adviser or a travel agent who can stroll you via the hieroglyphics of that policy language, so you know what you are coated for and what you’re not, because there are so lots of unique exclusions that are out there — both age, pre-current professional medical situations, and even some instances spot exclusions them selves. That is the first form of insurance.”

The next type of insurance policy is a single Greenberg suggests for travelers going outside the U.S. — healthcare evacuation and repatriation protection.

“Most frequently than not, it’s an once-a-year premium. And in idea, what it does is, if you get unwell or hurt overseas, they will pay back to get you medically stabilized where by you are [and] they will consult with your possess particular medical professional. Just after all, who is aware your health-related history superior than your very own individual doctor? And then if the situation warrants, they will fly you back on a medically geared up jet to the medical professional and health-related facility of your decision. All over again, it is all in the plan language. And you will need to converse to anyone to walk you by means of that. All over again, you do not do that online.”

Greenberg reiterated the value of conversing to the insurance plan service provider and your travel agent to find out what is excluded from your coverage.

“Are you also aged? Are you way too young? Do you have a pre-existing medical problem that they will not address? And is there a desired destination exclusion exactly where you are heading to — a place that they won’t address to get started with? Why would you purchase insurance coverage there if you’re not heading to get protected in the 1st place?” Greenberg reported.

Most wellbeing insurance coverage will address you in the 48 continental United States, Greenberg claimed, “But then once again, check out with your travel service provider. It is when you get outside the house the United States that you certainly want excursion-interruption and cancellation insurance policy, and, specially, clinical evacuation and repatriation insurance. Your health and fitness treatment protection, more frequently than not, will not address you once you depart the United States.”

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July 7, 2022

Travel Insurance Rates Today: July 5, 2022

The common value of vacation insurance plan proceeds to maximize in July. Very last 7 days, the typical price tag of vacation coverage was $259.52. As of July 5, 2022, the typical top quality for journey insurance policy is $264.10 for each excursion, according to facts from SquareMouth, a journey insurance policy company.

Of study course, numerous things will affect your premium. More mature vacationers, excursions with more travelers, and pricey journeys will boost the price of vacation insurance policy.

Journey coverage weekly prices at a look:

Ordinary top quality: $264.10 (for every excursion)

Normal excursion expense: $6,004.51

Regular vacation duration: 17 Days

Typical price tag of vacation insurance policy by trip

The far more you devote on your resorts, flights, and pre-booked pursuits, and the longer you might be traveling, the more you can shell out to insure your journey.

According to the US Vacation Insurance coverage Association,”travel insurance coverage normally fees from 4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of the whole journey. Charge is primarily based on the duration of excursion, place, and age of the policyholder.”

Resource: SquareMouth

Average price of travel insurance plan by most well known locations

When controlled for cost, the destination doesn’t transform how significantly you can invest to insure your journey. It truly is truly worth noting that some nations around the world are by natural means far more costly with flight and lodging expenditures, which could ultimately increase your travel insurance plan fees.

This is how the charges stack up:

Source: SquareMouth

When people today are shopping for vacation insurance policy

In accordance to an AAA journey study, 88{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of vacationers say that reimbursement soon after a excursion cancellation is the most precious profit of trip insurance policy.

In accordance to details collected by SquareMouth in the final six months, tourists have a tendency to obtain cancellation vacation coverage 53 times in advance of their journey. Meanwhile, tourists without cancellation insurance policy will buy a plan close to 16 days just before their excursion.

Resource: SquareMouth

Typical charge of journey insurance coverage by age

A traveler’s age is a considerable issue in identifying the expense of vacation insurance coverage. The older a traveler is, the much more expense is related with the excursion. For occasion, senior travelers may perhaps have to have extra insurance policy for overall health-associated emergencies than a millennial.

When calculating your journey insurance top quality, travel coverage vendors contemplate the probability of a health-related unexpected emergency.

Resource: SquareMouth

What does travel insurance go over?

Journey insurance can support reimburse you for non-refundable elements of your excursion or aid you if you might be hurt or face an crisis. Journey insurance coverage guidelines protect 6 major matters:

Excursion cancellation or interruption
Vacation delays
Healthcare expenditures although traveling
Baggage destruction, delays, or reduction
Emergency transportation
Rental car problems

If you have a credit rating card, you may possibly currently have entry to some of these coverages with no acquiring a different vacation insurance policy policy. Many airline credit score cards or travel credit cards come with excursion cancellation, delay coverage, and baggage coverage. For example, the Chase Sapphire Reserve and Chase Sapphire Chosen cards both come with some vacation coverage, which include journey cancellation, interruption, and delay coverage, baggage delays, rental autos, accidental death, and dismemberment coverage.

Just before getting a travel insurance coverage policy, it can be critical to make confident that the conditions match your wants or fears. Through the COVID-19 pandemic, which is especially important — each travel insurance plan company has exclusive reimbursement rules and cancellation guidelines because of to this celebration. Examine the wonderful print of any vacation coverage policy before obtaining.

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Alani Asis

Private Finance Evaluations Fellow

July 3, 2022

Catastrophic cyber risks pose challenge to insurance sector

U.S. significant infrastructure continues to be uncovered to cyberattacks with confined coverage safety available, a government report launched last 7 days explained, but specialists differ on how the dilemma ought to be resolved.

Some say the insurance policies market should do a improved job of addressing the danger of systemic dangers to crucial infrastructure, but other people say a government backstop is required.

A report issued past 7 days by the U.S. Federal government Accountability Office environment explained there is a restricted skill to go over probably catastrophic losses from systemic cyberattacks on targets these types of as utilities, money products and services and pipelines.

Cyber legal responsibility insurers have taken techniques to limit their losses from this sort of attacks, and the federal Terrorism Risk Insurance coverage Plan only handles cyberattack losses if they are regarded as terrorism, between other prerequisites, the report claimed.

The GAO known as for an assessment as to irrespective of whether a federal insurance plan response is warranted.

It is tricky to insure against hazards that have a lower chance of happening but have “massive consequences” if they do come about, claimed Stephen Lilley, a partner with Mayer Brown LLP in Washington.

Insurers have backed absent from the exposures, explained Stuart Panensky, a spouse with FisherBroyles LLP in Princeton, New Jersey.

“There are a handful of insurance gamers that proceed to insure in the bigger hazard industries, subject matter to pretty demanding underwriting tips,” but, as the examine factors out, several insurers “won’t touch it,” he stated.

Insurers “are hunting to improve the marketplace and to advertise what cyber insurers can do for policyholders. At the similar time, they’re searching to limit protection, enhance deductibles and retentions, and reduced restrictions,” claimed Peter Halprin, a partner with Pasich LLP in New York.

Insurers “need to be crystal clear which path they want to take this in,” he claimed.

Personal insurers should offer additional steady protection that safeguards corporations concerned with significant infrastructure jobs, and by extension everybody else needing it, stated Joshua Gold, a shareholder with Anderson Kill P.C. in New York.

“We need to have to address systemic chance and, until eventually we do, we’ve bought an inherent problem out there,” explained Nick Economidis, vice president of erisk underwriting for Crum & Forster, a device of Fairfax Economical Holdings Ltd., in Houston.

The market should really establish a long-time period remedy instead than “kicking the can down the highway,” he explained.

The governing administration should also participate in a purpose, some gurus say.

“There must be a governmental insurance coverage program that shields from the form of points that are uninsurable in the personal sector,” just as the Federal Crisis Administration Agency guards from widescale disasters, reported Aaron Aanenson, Austin, Texas-based mostly senior director and cyber insurance policy believed chief at cyber security rating business BitSight.

Bridget Quinn Choi, New York-based director of incident response technique at Booz Allen Hamilton Inc., mentioned a backstop like the federal terrorism coverage software should be made.

The remedy should really define what constitutes cyber terrorism or cyber warfare and what rises to the stage of triggering the coverage, she mentioned.

“This report is a stage in the proper route,” Ms. Quinn Choi said.

July 2, 2022

Examination of the US travel insurance market

Current market trends

Steven Benna, Marketing Manager, Squaremouth, confirmed a steady increase in the awareness of the benefits of travel insurance, with sales reaching new heights: “With traveller uncertainty at an all-time high due to the Covid-19 pandemic, this awareness has increased significantly,” he told ITIJ. “Travel insurance sales through Squaremouth.com surpassed pre-pandemic levels in the summer of 2021, and have continued to steadily increase as more people resume travelling. In 2021, sales were up 50 per cent over 2019, and more than 200 per cent over 2020. In the first two months of 2022, sales increased by 275 per cent over the same period in 2021.”

Beth Godlin, President of the Aon Affinity Travel Practice, confirmed a heightened awareness and understanding of travel insurance among consumers: “They’re making their travel decisions with an increased focus on protecting their investment and their health, safety and security – a lesson of the pandemic that will have a long-term impact on the way we see the world,” she stated. “As such, consumers today are more likely to consider travel insurance because it can offer an extra layer of protection against risks for the various phases of their trip, from before departure until a return home.”

Travellers are preferring to plan closer to their departure date, which is likely due to concerns about Covid, specifically changing travel restrictions and requirements, or worry about getting sick before the trip, for example

Anthony Spiteri, Chief Technology Officer, battleface, said an overarching trend post Covid is an increase in demand for travel insurance by American travel, as well as new interest in and awareness of exactly what is covered: “Prior to the pandemic only about 20 per cent of American travellers purchased insurance and based on most recent research this number has already increased to over 60 per cent,” he demonstrated. “The pandemic has also heightened awareness about the importance of travel insurance and travellers are now looking a lot closer at what their travel insurance covers. Travellers are now looking for ways to protect themselves against costs associated with unexpected medical emergencies, quarantine expenses, travel disruption, cancellation, and delay that have become increasingly common.”

Angela Borden, Product Marketing Strategist with Seven Corners, said that the insurer has witnessed an increase in recognition of the full range of benefits travel insurance offers: “US consumers continue to turn to trip protection plans for trip cancellation and delay benefits with increased consideration for optional add-ons like Cancel for Any Reason (CFAR).”

This, of course, is particularly salient in the era of Covid-19, where travel uncertainty is rife. Another trend that Borden highlighted is travellers waiting longer to book their vacations. “They are preferring to plan closer to their departure date, which is likely due to concerns about Covid, specifically changing travel restrictions and requirements, or worry about getting sick before the trip, for example,” she explained.

Spiteri told ITIJ that a desire for custom plans is on the rise: “We’ve addressed this by developing unbundled insurance products that give travellers the ability to build their own coverage plan, choosing only relevant and necessary benefits from a selection of coverage options,” he underlined. The company reports a similar trend with distribution partners, who are keen on developing products that are very unique to their platforms and the needs of their customers.

Consumer behaviour and travel recovery

Many of the current trends seen in the US travel insurance market have been influenced by the Covid-19 pandemic, which has also presented new and unique concerns for US travellers, such as the fear of testing positive when abroad. “A persistent concern for travellers is getting stuck in another country if they test positive for Covid and need to quarantine,” Borden confirmed. Another worry post-Covid is the increased likelihood of trips being cancelled at the last moment, and this is influencing consumers when it comes to purchasing cover, as Benna articulates: “Since the start of the pandemic, about 75 per cent of Squaremouth customers buy travel insurance with trip cancellation coverage. So far in 2022, 79 per cent of travellers are selecting trip cancellation coverage. Prior to the Covid-19 pandemic, this figure was consistently between 60 per cent and 65 per cent.”

Godlin said that the pandemic has placed new emphasis on health and wellness for consumers, who are now taking extra precautions to ensure peace of mind and flexibility: “Consumers have been looking to safeguard themselves at a level they haven’t before,” she told ITIJ. In turn, the industry has responded to these changing patterns in consumer desires and behaviour. “The industry has developed plans specifically to address Covid-19, meeting consumer demand and the requirements of many destinations. CFAR plans have also become more popular because they enable consumers to do just that. While these benefits can be more expensive than traditional travel insurance, they address the need for more flexibility in travel plans.”

2022 is expected to be a strong year for travel, with potential for pre-pandemic levels to be attained

Looking at industry recovery, Borden said that Seven Corners is seeing recovery from the drop in travellers during the pandemic as travellers regain trust in travel but that awareness of the potential for disruption and other unpredictabilities is now engrained in travellers’ psyches. “As some travel restrictions ease and with availability of the Covid vaccine, people are gaining confidence in travel again. Even with that growing confidence, however, travellers are aware of how quickly plans can change,” she said. “They or their travel companions might get sick, a destination might change its entry requirements, flights might get cancelled or delayed due to illness or employee shortages. There is still a certain amount of uncertainty in travel, but travel insurance offers protection to minimise or counteract loss in some of those instances.”

Godlin said that, due to various factors, 2022 is expected to be a strong year for travel, with potential for pre-pandemic levels to be attained. “All indications show that 2022 will be a very strong year due to pent-up demand. Revenge travel is returning, international borders are continuing to open, vaccination rates are growing, and Covid cases are declining,” she told ITIJ. “As an industry, we’re seeing data that indicates it’s going to be a big year for travel – so big that it may rebound to pre-pandemic levels. And travellers are looking to splurge. We expect this heightened interest in travel to increase further as we get closer to the endemic stage of Covid-19.”

Insurtech trends

Susan Silfen, President of the US Travel Insurance Association (UStiA), noted: “One of the growing travel insurance technology trends appealing to the younger generation of travellers is the immediate electronic payment for approved benefits for the all-too-common travel inconveniences like a missed connection, baggage delay, flight delay, or an airline’s last-minute flight cancellation. Some travel insurance providers can track an insured’s flights, recognise a covered delay or cancellation, and automatically deposit the covered limit into an account or debit card, eliminating the need to file a claim with receipts.”

Seven Corners is leveraging technology to improve the claims process via a program called Claims Your Way. Borden told ITIJ: “Regardless of how customers choose to file, software is used to automatically assign a claim to Seven Corners employees based on experience and availability. This allows for adequate time and attention for each individual claim. Claims Your Way then sends customers an automated message with the name and contact information for the employee handling their claim and pushes the claim to the customer’s account on sevencorners.com, making documentation and tracking easy to access,” she explained. Not only does this enhance transparency, which is an ongoing goal for the industry, it also simplifies the process and improves customer experience. “Appeals and complaints regarding claims have decreased dramatically since the program launched,” Borden confirmed.

Benna said that, at Squaremouth, improvements have been made to help consumers quickly and accurately find the best policy for their concerns which, of course, is highly important in the age of new, Covid-19-induced concerns. “To do this, we built new ‘trending benefits’ into our system based on the most common concerns for our customers. With those new benefits, we added the ability to filter out any policies that don’t offer Covid-19 coverage, allowing our customers to easily identify the least expensive policy with the coverage they need,” he explained.

We need to enable advancement with an eye on maintaining the brand experience consumers want

Godlin emphasised that embracing technology is imperative to meet changing consumer expectations and to keep pace with competitors: “The trick for industry players is to determine the right level and types of technology to incorporate into their businesses. We need to enable advancement with an eye on maintaining the brand experience consumers want,” she said. She pointed out that, ultimately, ensuring a seamless and pleasant customer experience is key. “As we migrate to more advanced technology in the travel insurance industry, we must also understand that customer experience still demands human interaction. We can develop all of these innovations, but at the end of the day, it’s still our job to serve up what the customer needs in a way that’s efficient and user-friendly for consumers of all ages,” she told ITIJ.

At battleface, insurtech is being harnessed to facilitate customisation: “With our proprietary insurtech platform, we’re also allowing partners to custom build their own products for their customers, seamlessly integrated via API, A/B test products, and benefits that resonate with their customers. This leads to higher conversion rates versus traditional methods of just offering a pre-packaged product.”

Forecasting future patterns

Looking ahead to the trends that may emerge or develop in the coming years, Benna believes that demand for travel insurance will continue to grow and provided insight on the catalysts behind this:

“More travellers buying cancellation coverage due to travel suppliers tightening their rebooking/refund policies
More travellers buying medical coverage due to countries implementing entry requirements
An overall rise in uncertainty among travellers and an increased awareness of the benefits of travel insurance
A decrease in CFAR purchases as destinations largely remain open
New policies emerging with specific wording for perils related to what we saw impact travellers throughout the pandemic, specifically, CDC warnings and travel warnings.”

Godlin highlighted a growing appetite for customisation, which is likely to continue apace: “Today’s consumers don’t just want specialisation. They expect it. In the coming years, I believe this trend will only grow. As travel brokers, we will need to continue to design tailored travel protection plans because travellers are demanding it from their travel suppliers. The best travel protection products are no longer ‘one size fits all’. Instead, they’re customised to both the travel supplier’s customer demographic and the travel experience itself.”

Spiteri forecasts that future trends will involve continued harnessing of technologies, as well as a growing emphasis on transparency: “Using data and machine learning to deliver relevant products to today’s travellers, ability to customise based on the traveller’s actual needs, tech-driven sales, Artificial Intelligence-assisted claims, and assistance services for instant response. But, most importantly, transparency,” he said.

travellers have new needs and wants regarding the cover they require

“Chaos breeds opportunity and the travel insurance industry is proving to be remarkably resilient in the face of chaos, Silfen told ITIJ. “The combination of tailored plan designs to meet the needs of a diverse population coupled with the use of technology to better understand the needs of the customer will make for a strong rebound with some lessons learned along the way. And add a little bit of good fortune with the testing requirements to the US on the back burner and the industry is posed for both rebound and innovation!”

A growing awareness of the benefits of travel insurance among consumers is a key trend in the US travel insurance market and, what is more, travellers have new needs and wants regarding the cover they require – many which have emerged as a result of the pandemic – such as a growing desire for customisation as well as a need for flexibility that is manifesting as an increasing popularity of CFAR cover. Travel insurers are receptive to these changing consumer needs and behaviours, and the industry is placing renewed emphasis on customisation and the consumer experience while harnessing insurtech in the development of products and advances to meet consumer demand. There is no doubt that uncertainty remains, but travel insurance has the ability to protect against this and with US travel expected to be strong this year and consumers displaying a new appreciation for the benefits of travel insurance, the industry is set to move from strength to strength.

July 2, 2022

Keep on truckin’: Cover Whale’s commercial insurance MGA start-up

And vans. The enterprise normally solutions business truckers and truck fleets (modest to medium-sized enterprises). It works by using information and sophisticated engineering in the autos it addresses that serves effectively as a co-pilot to motorists, decreasing accidents but also helping to retain insurance policy price ranges decrease.

Deal with Whale has experienced a wholesome expansion trajectory so much because its mid-2019 start. The New York-centered get started-up was to begin with bootstrapped till it lifted $15.5 million in late 2021 in a round led by Ambac Economical Team and TigerRisk Partners’ Used Fiscal Systems subsidiary. The corporation employs close to 130 people today currently, with 90 full-timers (contractors make up the big difference).

It has also expanded from dealing with $5 million in top quality in 2020 to $65 million in 2021 and $100 million so far for the 2022 calendar.

When headquartered in New York City, Include Whale also has an workplace in Orange County, California, and a remote crew distribute throughout the US and in other countries.

The corporation is laser-concentrated on commercial car, initially focusing on trucking and proprietor/operator organizations in the area. Protect Whale is broadening this to other lessons of business automobile around time. According to Abrahamsen, commercial insurance was a logical organization goal inspite of the sector’s price and profitability issues in modern years.

“It is underserved [and] disregarded versus some of the progress that you might see on the personalized lines side of matters,” Abrahamsen stated. “We like it for people good reasons – getting equipped to give some of the [products and services] to more compact accounts on the business side that they could genuinely benefit the most from.”

He added that the commercial side has “much increased premiums and considerably higher possible for savings” compared to the private strains.

Where the tech comes in

Abrahamsen describes Deal with Whale’s insurtech things as covering a handful of distinct parts.

There is an on the web platform, of training course, built to make it easy to transact organization with Protect Whale and get a brief estimate for obtaining a plan. The “real tech” kicks in, having said that, in terms of how Address Whale handles facts.

The procedures the enterprise sells come with a risk administration plan, which include a twin experiencing AI digital camera. This allows “coaching” furnished again to motorists, both of those human and automated. The dashboard digicam, mounted on the windshield, also collects telemetry knowledge this kind of as spot, speeding, braking, or acceleration details. There is no fear about constant filming, even so. The camera is only activated when an “event” comes about these kinds of as an incident, and it snaps movie on equally sides of the car just before and a moment or two just after, he defined.

AI and device learning are significant pieces of Go over Whale’s concentrate.

“When we glimpse at AI and machine learning … it is [about] the implication of the driving info, and how it correlates to serious earth results on the coverage facet, which are claims,” Abrahamsen explained. “We’re searching at what styles of driving habits essentially final result in statements, and that is, for us, when equipment mastering facets are most closely employed.”

Integration with partners

Most sales so significantly are through Go over Whale’s internet portal, though the business is gearing up to form integrations and partnerships on the distribution facet, such as with retail brokers or wholesale brokers – about 80{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of its small business is on the retail side and 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} wholesale. A pair of companions are in the method of integrating right now, with the very first plan certain by means of partnerships expected in July, Abrahamsen mentioned.

To integrate with an agent, the to start with phase involves paperwork and other preliminary documentation “pretty standard” to integrations, he famous.

Move two would contain Protect Whale providing API documentation and determining what info the agent partner would will need to deliver to Deal with Whale to make that method take place.

Upcoming, as soon as the API back links are established, both functions discover what the connection response from the server would appear like programmatically and then deliver a hyperlink to get the genuine code document and total the relationship.

The integration procedure can acquire days or a couple of months, based on whether the partner has a tech staff and focused methods.

But the quotation method and original API relationship can be carried out in seconds, he claimed.

There’s also coaching way too, mainly because the connection includes a web interface component, where producers can log in and enter the details they need to receive a quote. Address Whale delivers video clips, webinars and education periods to assist, but the firm found that “most producers do not definitely need to have a ton of palms-on coaching,” Abrahamsen stated. “It’s really intuitive as you could possibly picture.”

July 1, 2022

Consolidation in the travel insurance and assistance sector

Flexible benefits and expertise in medical assistance

ITIJ also spoke with Claire McKinnon, UK Sales Director, Healix, who confirmed that the pandemic undoubtedly impacted smaller international assistance companies: “Particularly those who did not have the capacity or capabilities to respond to the changing demands of corporates and insurers,” she added. McKinnon speculated that insurers’ evolving needs in light of the pandemic may have impacted certain assistance companies. “Following the initial need to assist business travellers navigating global flight bans and border issues, or providing medical assistance to those with Covid, corporate requirements were redirected towards things such as 24/7 medical helplines,” she told ITIJ. “As a result, partnering with assistance firms that could offer expert and constant medical and security expertise to their staff became vital, and is likely to be where some smaller travel assistance companies struggled.”

Randy Cook, CEO, AMI Global Assistance, commented that on the surface, assistance capacity has decreased, whilst the complexity of need has significantly increased. “While many use the volume of global travellers as the ‘need indicator’, specifically in the leisure travel sector, we cannot avoid the new mix of factors impacting the industry, beyond the number of people in the air,” he told ITIJ. “International assistance companies work within national and localised healthcare channels when delivering service. This drives the need for regional expertise where many larger firms garner support from smaller firms with a niche regional focus. If those smaller firms are still suffering impacts from the Covid era, you have the beginnings of capacity issues, which will only grow exponentially.” Ultimately, the relationships between stakeholders – namely insurers and global health and assistance providers – are key, and strong connections are crucial to continued success.

assistance companies have a responsibility and measures in place to ensure continuity when unexpected events occur

James Page, Chief Administration Officer and Head of Assistance and Claims, AIG Travel, said that his company has seen only minimal changes to the number of providers available to assist with cases: “While some companies did decide to close or combine with others in their field, the majority of the providers we have historically worked with are still in operation. Some staff may have been reduced due to the decrease in travel, but assistance providers appear to have been able to evolve to a model designed to provide more flexibility when full volume returns.”

Amanda Winkle, Chief Commercial Officer, IMG, highlighted that assistance companies have a responsibility and measures in place to ensure continuity when unexpected events occur: “Covid-19 has certainly generated significant call and case volume increases, but there’s a responsibility of assistance companies to plan and staff for these types of rapid and unexpected volume increases,” she stated. “Assistance companies also have a business continuity plan and disaster recovery plan that is tested annually. If there is an unexpected increase in volume that cannot be managed by the core service team, the contingency plans are activated to manage the volume.” This may entail having other offices or entities handle the increase in work, or it could mean deploying a plan to get temporary help in place quickly.

Recovery, uptick and resilience

In spite of setbacks and challenges experienced, as travel resumes and consumer confidence increases, many assistance companies have seen a subsequent rise in demand for their core services. What is more, the need for effective assistance and travel risk mitigation has been underlined by an increased understanding of the importance of the industry. “By mid-2021, assistance case activity started to increase in volume again alongside travel insurance claims, as restrictions were lifted and more people – firstly tourists, and then business travellers – gained confidence to travel,” said McKinnon. “From this point on, many organisations have seen an increase in the need for assistance beyond pre-pandemic levels, as Covid-19 has reinforced the need for effective assistance and travel risk management solutions more than ever.”

Jamie Hersant, Head of Travel Claims, Admiral, described positive changes in terms of new levels of flexibility afforded: “Specifically in relation to the UK market, some of the larger assistance providers are benefiting from the flexibility the pandemic has created to recruit remotely in the UK and abroad to expand and strengthen their existing capacity to be ready for the rebound being seen in the travel market as a whole.” He said that although there is no denying that it has been a challenging period, there is a new understanding of the importance of resilience and many companies have been able to showcase these skills, as well as provide newly developed offerings. “It has shown which companies have a resilient model to weather even the most challenging of circumstances,” he stated. “It may also give an opportunity for new companies to emerge providing something different, or to restart without the legacy of any issues that existed prior to the pandemic, and this should be embraced.”

Winkle said that for IMG, rigorous staffing preparations have played an important part in mitigating the impact of the pandemic, and will continue to do so moving forward: “This is achieved by staying closely aligned with current and potential clients to understand their needs and volume projections for the upcoming months and years,” she told ITIJ. “Ensuring that a robust talent pipeline is maintained through our partners in Human Resources is also key to allow for rapid and efficient hiring of staff to account for the additional need.”

Traditional assistance is reactive, commoditised and no longer meets the needs of complex multinational client

A new era of assistance?

The challenges presented by the pandemic highlighted the need for reactivity and flexibility and underlined the idea that certain traditional processes may no longer be viable. Donnelly told ITIJ: “Traditional assistance is reactive, commoditised and no longer meets the needs of complex multinational clients. Most seek proactive education and intelligence, delivered through digital platforms and apps, to not only fulfil their Duty of Care requirements but to protect their people and eliminate insurance claims.” The Covid-19 pandemic amplified this market shift, typified by the high rate of adoption for teleconsultation, which is now readily accepted around the globe as new way to see a medical professional. “Another example,” he continued, “is specialist counselling services, which are seen as a core need for mobile populations, often purchased directly rather than as an add on to insurance. Covid-19 has radically changed clients’ needs and the demand for more bespoke solutions. The adoption of ISO 31030 will also increase expectations even further.”

Cook also believes that a focus on digital solutions, along with flexibility, is essential to navigating the ongoing impacts of the pandemic and that it is necessary for all stakeholders to adapt in order to thrive: “The ‘new’ focus to stay safe and well is pressuring the assistance sector to quickly pivot and become more agile and digital. As people continue to embrace new methods of healthcare delivery, global assistance providers will need to adopt a more pre-emptive approach with services such as pre-travel planning, contact tracing, counselling/mental health services, telehealth offerings, occupational health programmes and cost containment services.”

Lessons learned and positives taken

As travel continues to gain ground, the remaining assistance companies are well placed to deal with demand and continue to adapt and respond to the unexpected. As McKinnon pointed out, while the industry will never be the same again, this doesn’t have to be a bad thing: “All players have learnt many lessons in the last two years that have made us more resilient and entrepreneurial. Now, the companies that expand their offerings, innovate towards clients and partners’ needs, and can be flexible internally to meet demands, will be the ones who have the capabilities to support the insurance industry, and those who don’t will struggle, regardless of their size,” she told ITIJ.

Typical responsive assistance business models, providing pure emergency response solutions, will not meet the emerging needs of customers

Cook agrees that the pandemic has irreversibly altered the state of play: “Covid-19 has radically reshuffled the deck, ushering in new challenges for businesses, travellers and insurers. Typical responsive assistance business models, providing pure emergency response solutions, will not meet the emerging needs of customers, which have been shaped by new perspectives on risk coupled with navigating evolving policies and protocols.”

Hersant said that new levels of awareness have been reached for both consumers and travel insurers and continued growth and evolution will ensure consumer needs are met: “There is still a variety of products and differing levels of cover available to suit most customers’ needs, and the pandemic has made customers more aware of both the need for travel insurance, and the importance of finding the right level of cover for their needs,” he said. “This is a positive thing for the market both in terms of potential growth, but also customers being more aware of what they are buying – by default this is likely to drive evolution in product development to meet future needs.”

Together as one

With continued flexibility and adaptability, travel insurers and assistance providers alike will continue to evolve and meet the changing demands of consumers. “As insurance providers focus on expanding their global footprint through highly customised insurance policies and the delivery of new digital services, the assistance sector will have to work diligently to adapt their service models to more tailored, innovative solutions for customers to keep pace with the growing demands for more and better protection,” said Cook.

Insurers and assistance providers are primed to continue providing the service they are known and respected for.

Solutions will always be found and as challenges evolve, so too will the tools needed to overcome them, said Donnelly: “The insurance and assistance industries are interdependent and will always find solutions for clients,” he told ITIJ. “Covid-19 has radically changed what those solutions look like and the demand for more bespoke solutions.”

As they emerge from unprecedented turbulence, it is even possible that many companies are now stronger than ever before. As McKinnon stated: “Many international assistance companies are now seeing the opportunity to come back stronger and with an increased offering to cope with new demands in a post-pandemic world.” However, this relies on a willingness and ability to adapt. “With an uptick in domestic and international travel, assistance providers will have to be ready to respond to new customer demands and expectations,” said Cook. Page acknowledged that challenges remain, and it is important not to become complacent but remain ready for action: “While we are not currently encountering difficulty in finding providers for assistance cases, travel has not yet returned to full volume; we anticipate that providers will continue to adapt and meet demands when we reach full travel volumes,” he said.

The pandemic served to highlight that some of the more traditional methods employed by the insurance and assistance sectors may no longer be effective in the face of challenges and new, novel solutions such as telemedicine are helping to drive these industries forward. Flexibility and agility have become more important than ever before, along with contingencies in place to continue to thrive in the face of unprecedented challenges.