Klook Protect survey exposes travel insurance gaps

Klook, a Hong Kong-based platform for experiences and travel services, reveals key findings under new research conducted by Klook Protect, its travel-first insurance arm. Exploring consumer attitudes, behaviours, and lifestyles impacting travel insurance today, ‘Travel Troubles Beyond Lost Luggage 2024’ investigates the gaps and protection needs of Asia’s millennial and Gen Z travellers. 

Chuan Sheng Soong, Chief Executive Officer of Klook Protect, commented: “Millennials and Gen Zs are looking for travel insurance that goes beyond protecting their general safety; they want to be fearless and experience the thrill. They’re tech-savvy and independent travellers that embrace unpredictable adventure and exploratory spirit. This is why there’s a gap in the market for different types of travel insurance that reflects their travel habits alongside elevating the quality of their holiday.”

Travelling in 2024 comes with a few added layers of risk compared with previous years. Among many factors, climate change, economic pressures and health concerns have all led to disrupted travel plans, potentially impacting safety in certain destinations. Examples include deadly flight turbulence, increased crime rates in high tourist areas, and health risks such as climate-sensitive infectious diseases.

Traditional travel insurance ‘fails to keep up’ with the evolving needs of travellers

Among those surveyed, 21% of millennials and Gen Zs expressed a desire for less traditional travel insurance which tends to follow an outdated, cookie-cutter approach. Specifically, 34.1% want the process of getting travel insurance to be enjoyable, followed by 12.7% and 8.1% who want a more progressive and transformational provider respectively. 

Difficulties in making claims (25%), understanding what is covered (22%), and having processes that are too complex (22%) or too long (20%) were key factors in discouraging modern travellers from purchasing travel insurance. Furthermore, 75% of travellers prefer to book aspects of their trips (flights, accommodation, insurance) all in one place, with 28% of those respondents ‘strongly agreeing’.

Malaysia (36%), Singapore (34%), and Hong Kong (21%) are the top markets with travellers highlighting difficulty in making claims. At the same time, the Philippines has a significant 40% of travellers who are more value-conscious, ranking price as the top priority.

Younger travellers need different protection from unforeseen events as they are exposed to higher risk

According to Klook, 48% of travellers under the age of 35 are often drawn to adventure travel and exposed to more risk during vacation due to solo or unplanned ventures. This includes activities like extreme sports, off-the-beaten-path destinations, and physically demanding experiences. These activities inherently carry a higher risk of injury or accidents than more traditional sightseeing.

Millennials and Gen Zs heavily rely on technology for navigation, communication, and even booking activities. Dependence on phone battery life or limited internet access in remote locations could pose further challenges in emergencies. Other new risks such as ride-share scams, misrepresentation of accommodation on websites, and poor safety standards from adventure providers will increasingly drive demand for protection against them.

Majority of travellers unmotivated to buy travel insurance, with some leaving purchasing decisions to the last minute

Despite what Klook describes as “a culture of over-preparedness” and meticulous planning in Asian households, travellers from Hong Kong, Malaysia, the Philippines, as well as Singapore, who lead the way in frequent travel, wait until less than a month before travelling to make decisions on travel insurance. The survey also found that Singaporeans (30%), Hong Kongers (36%), Malaysians (37%) and Filipinos (36%) buy coverage just days to a week before their trips.

One-fifth of respondents expressed concerns over the complexity of making insurance claims, while 32% indicated a strong preference for seamless, easy-to-claim policies. These findings underscore a much bigger opportunity in the market.

Squaremouth research recently showed Gen Zs are spending an average of US$11,766 per trip, surpassing all other generations for the first time in four years.