22 Mar ‘Intelligent’ Travel Insurance is Booming – Time for Mobile Operators to Disrupt the Traditional Insurance MarketReading Time: 3 minutes
The rise of intelligent tech in this digital and mobile-connected era has led to enormous shakeups in traditional industries. One such industry impacted the most from these new developments is the insurance business. Specifically; travel insurance. Companies worldwide are now communicating with their customers and distribution partners in a myriad of ways – claims are submitted via purpose built apps, chatbots handle customer care and AI is becoming an increasingly greater decision maker. Everything to simplify and automate previously convoluted and slow procedures.
Around a billion (!) people travel internationally each year (UNWTO, 2017). It’s a lucrative market for adjacent growth for mobile providers leveraging the latest tech.
Technological Advancements Offer Hyper-Customisation
The travel insurance market can now mould itself better to customers than ever before. Take i-surance, for example. They have designed a travel insurance offer for mobile providers that can be purchased on demand for the actual days that are spent abroad rather than taking out unnecessarily expensive yearly plans. In the case of i-surance, these days are then added to the customer’s monthly phone bill, hassle-free. If the customer wishes, that cover period is activated when the customer arrives at their travel destination, via an automated roaming SMS triggered when the phone detects that it is abroad. This means last minute changes to travel itineraries won’t adversely affect the travel dates submitted to the insurer, and ensures the customer won’t be out of pocket.
The Case for Personalised Packages in Travel Insurance
Travel insurance can also be bundled economically with other services, such as roaming minutes. It’s much more likely that a customer will buy an easy package deal that takes care of all their travel needs if it’s available to them. Everybody loves bundles!
What’s more, plans can now be precisely tailored to the travelling habits of generations – including millennial and elderly specific coverage. The former generation value cover of their (often pretty valuable) luggage. Think laptops, smartphones and cameras. A missing or stolen bag is a millennial nightmare! Grandma, on the other hand, is more worried about falling from a tuk-tuk or getting sick in a new climate and ending up in a hospital far away from home. Health assistance cover is the primary concern of the older generation when it comes to travel insurance. These wildly different insurance interests can now finally be catered to, thanks to the help of online sign ups customised to individual customer profiles.
Generation-specific and destination-country-specific risks are both seamlessly and automatically calculated via digital algorithms, a phenomenon only possible in our current era. This leads to optimised pricing for the insurance provider and, more importantly, for the customer, often instantaneously online. Gone are the days of customers taking out an overpriced plan for a holiday, or agents left with complaints and headaches!
Digital processes are by their very nature faster and cheaper, but clearly also open up a world of customisation and communication possibilities that mobile providers should leverage now to drive disruption of the travel insurance market.
If you are a mobile operator and are ready to dive into the possibilities of bundling travel insurance as a new feature for your customers to gain further loyalty and earn revenue, contact i-surance here.