ITIC APAC 2024 | Travel trends in APAC – key insurance risks and assistance challenges in the Asia-Pacific region
In the third session from ITIC APAC, Michael Chan from Crisis24 and Melinda Byrne from Southern Cross Assist examine where travellers are heading to within the region, and ask whether domestic vacations are on the rise
The ITIJ team share their reports from ITIC APAC 2024 in Bangkok (16–18 June). Read all reports
Michael Chan, Operations and Network Manager at Crisis24, gave an insightful presentation that highlighted the current trends in business, domestic, regional, and international travel. He said that, since the pandemic, virtual business meetings had increased. The benefits were cost savings and boosting flexibility for routine and global collaboration. However, he said that in-person meetings remained essential for relationship building and complex negotiations.
Regarding domestic and regional travel within Asia Pacific, Chan noted that many travellers were opting for staycations or travel within the region. Governments, such as Singapore’s, had actively promoted local travel to encourage residents to explore local attractions.
He said there had been a surge in international travel to Asia Pacific, most notably to Indonesia, Japan, Singapore, and Thailand. ‘Digital nomads’ were also on the rise, with more than 60 countries now offering visas specifically aimed at them.
Countries popular for affordability, quality of life and high-speed internet were Indonesia, Malaysia, Thailand and Vietnam. However, Chan stressed that without appropriate insurance coverage, individuals faced potential issues and risked having their claims declined. But, he said, as the digital nomad community continues to expand, more insurers are now offering coverage tailored to their lifestyle.
Chan’s presentation also touched on technological integration. He said that mobile applications had allowed for access to up-to-date medical and security intelligence. The pandemic had accelerated the adoption of telemedicine, and travellers now expect to be able to access health consultations via digital platforms globally, he added.
Additionally, wearable devices that track vital signs in real time could now be integrated with healthcare systems to ensure accurate, up-to-date health information for consultations.
Chan said that an ageing population and the prevalence of chronic disease was increasing costs. He stressed a need to invest in technology and training to maintain standards without significantly increasing prices. Transparent billing and clear communication are also essential, as is collaboration between insurers and healthcare providers to find shared solutions to the issue of rising costs.
Melinda Byrne, Director at Southern Cross Assist, opened her session with an overview of the effect the Covid pandemic had on travel within APAC. She said that in 2021 international arrivals in the region were just 7% of those in 2019. In 2022, tourism growth was slow, despite most borders opening. Even by 2023, visitor numbers were still down 24% compared with 2019. However, she optimistically said that APAC tourism was projected to recover to pre-pandemic levels this year.
Next, Byrne outlined current travel trends. She said there would continue to be a decline in business travel, while domestic and regional tourism, digital nomads, and travel preparedness would increase. She also said that customer expectations were getting higher.
She went on to highlight the challenges that assistance companies face by presenting the delegates with a case study of an accident.
The case involved a 30-year-old insured man who was involved in a motorcycle accident. He suffered significant trauma to one arm but had limited recall of the event. He reported increasing and severe pain in the arm. There was also rapidly progressing swelling and loss of sensation to the extremity.
It was recommended that he receive an urgent clinical assessment. Byrne said that challenges faced when dealing with the case included the fact that the customer was responsible for costs until details of the insurance cover could be determined. Due to language barriers, limited medical information was available. She said that there was also the issue of patient expectations versus the actual standard of care available locally. To solve this, she stressed the need for good communication, advocacy and the need to establish effective partnerships and collaboration.