The power of parametric - Part 2

This is part 2 of Carl's lesson on the value of parametric for our industry. Click here to read part 1

Travel insurance responds well to a medical emergency via the help of 24/7 emergency medical helplines, however traditional travel insurance has no rapid claims handling solutions for common non-emergency claims such as a delayed flight or lost luggage. It requires the traveller to fend for themselves and undergo arduous form filling and document gathering, then a manual claims handling process, for the insurer only to typically pay out weeks after an event.

The benefits for travel insurance brands using Blink Parametric technology for flight delay or luggage delay claims are that their customers receive a real-time, seamless customer service that is proactively delivered direct to the customer in their time of need, and there is no manual processing by the travel insurer or claims handler. We are all consumers and when we use a service that provides speed, convenience and intuitive solutions to meet our needs, it leaves a lasting positive impression. It’s the same with insurance products. The combination of data, mobile tech and real-time automated business logic delivers:

• Rapid, personalised alerts, options, and choice of resolutions
• Practical and tangible assistance through automation that allows customers to self-serve and determine their preferred next step
• Simple to use and hassle-free solutions in real-time, where phone calls, claim form completion or receipt submissions are not required by a process that doesn’t get in the way of busy lives and travel plans!

A parametric solution is easy to integrate into a travel insurance policy from an insurer perspective. The Blink Parametric API allows the white labelled solution to be fully insurance-partner branded and embedded. It can then be easily adapted for tiered benefit or optional add-on cover within an existing product range, customer journey or membership benefit. The service is then simply included within the traveller’s policy schedule, certificate and welcome email.

Adopting parametric in travel insurance

Since Blink Parametric’s foundation, we have been firm advocates for removing complexity from insurance products, customer journeys and the customer experience, making them simple, accessible, user friendly and automated with streamlined claims validation. Consumer Intelligence and the results of a Views bank Survey of 1,027 consumers (Sept 21) shows there is significant consumer appetite for parametric (real-time) travel insurance solutions. Seventy-five per cent of consumers were interested or very interested in a realtime flight delay solution and 68 per cent of consumers were interested or very interested in a real-time luggage delay solution.

This has been supported by the positive commercial impact seen by Blink Parametric insurer and brand partners that have embedded parametric solutions into their traditional travel insurance products. Partners have reported increases in sales of 5–10 per cent and upsell conversion rates of up to 23 per cent of customers choosing parametric add-ons, paying extra for a real-time solution.

We are also hugely motivated that the global leaders in travel insurance such as Blue Cross, Manulife, TuGo, Zurich and many more, are blazing a trail in utilising our parametric solutions which is truly transforming the global travel insurance sector and their customers’ user experience.

Why parametric travel insurance solutions work

Benefits to the travel insurance company using a Blink Parametric solution rather than a traditional solution means: 

• The insurer gets to work with an expert, award-winning insurtech, experienced in working with global brands. Blink Parametric does not provide insurance or sell direct to consumers thereby ensuring zero competitive conflict
• No claims forms are required as the tech and data validate the claim
• Real-time consumer resolution can be provided at their time of need
• It is significantly cheaper than a manual claims process delivering up to 90 per cent cost savings for insurers
• It is significantly faster for both the insurer and the consumer in comparison to the traditional travel insurance ‘manual’ traditional claims handling times with a ninety nine percent reduction in claims handling duration
• No receipts are required to be retained or sent to an insurer
• The technology is surge-proof in the event of significant single cause delay events such as a winter storm, meaning help lines and claims teams do not get swamped
• No ‘people’ interaction is required, saving significant overhead and operational costs
• Implementation savings can be realised by reducing in-house investment
• As a branded solution, it can be made market-ready, delivering efficiencies, and enhancing customer satisfaction ratings in three months for standard implementation
• Fully global and scalable solution that does not increase headcount as sales grow
• Fraud is virtually non-existent as processes are purely data-led and verified