Covid-19 propels travel insurance popularity
It may have been the worst year for travel, but a new study from BHTP suggests it may have also been the best year for travel insurance
Berkshire Hathaway Travel Protection (BHTP) has witnessed the highest spike in consumers’ intent to purchase travel insurance since it began its annual State of Travel Insurance survey of travelers back in 2015. The survey has uncovered a seismic shift in consumer behaviours, with a record 49 per cent of travellers saying they are going to buy travel insurance more frequently in 2021 than they did in 2020.
In terms of travel behaviour, BHTP’s survey highlights that almost 70 per cent of respondents believe the pandemic has changed the way they travel forever.
Consumers desperate for travel experiences after being in lockdown
BHTP’s findings revealed that for the first time in State of Travel Insurance history, the highest number of respondents said that if they were given US$5,000 they would spend it on travel. Never before have respondents prioritised travel in this way.
After months of lockdown, there’s no doubt that people are eager to get out and about, but they’re still cautious about travelling. Saving time and money may well still reign as the top reason for buying travel insurance, but BHTP also cites fears of disease epidemics as another factor.
Interestingly, BHTP’s survey also uncovered that respondents judged the safest countries for travel as being Canada, Australia, Switzerland, the UK and New Zealand.
New insurance offerings should incorporate consumer behaviours
Insurers looking to make the most of the piqued interest in travel insurance need to consider consumer concerns. Cancel for any reason policies, flexible booking options and offerings that cover Covid-19-related expenses are, unsurprisingly, proving to be very popular at the moment. And a wealth of international insurers, including ROCK Insurance, have stepped up their game by offering policies that cover travelling against FCO advice.
“The pandemic is going to continue to disrupt the travel industry well into 2021, so it seems only natural that traveller behaviours are changing and intent to buy travel insurance is spiking,” said Carol Mueller, Vice-President of Berkshire Hathaway Travel Protection. “The pandemic has already significantly altered how people travel, which is why we have been introducing new insurance products.”