Three in five Singaporeans plan to travel in 2022

Three in five Singaporeans (60 per cent) plan to travel abroad in 2022, according to research commissioned by general insurer MSIG in collaboration with digital insurance platform provider Ancileo.

The survey polled 400 Singaporeans between the age of 18 and 69 on their desire for post-pandemic travel, with the aim of better understand consumer attitudes towards the purchase of travel insurance.

Of those respondents who wanted to travel, more than half want to travel to countries outside of Asia, and 82 per cent said that they will purchase travel insurance for their trip.

In addition, among those who did not have plans to travel, 86 per cent indicated that they would purchase travel insurance if they had reasons to travel for essential reasons. This sentiment was found at roughly equal rates across all age groups.

Covid coverage was a motivator for insurance purchases, but wasn’t the deciding factor for plans

Unsurprisingly, Covid-19 coverage was listed as the top reason for consumers wanting to buy travel insurance, with 21 per cent saying that it was their main motivation for travel insurance purchases. This was followed by concerns about the availability of emergency and medical coverage (19 per cent), followed by trip cancellation coverage (16 per cent).

However, while Covid-19 was the primary motivator, pricing was ultimately the deciding factor when it came to choosing a specific plan, with 20 per cent of individuals citing it as their primary concern. This was followed by the ease of online claims services (16 per cent), with Covid-19 benefits coming in third place at (15 per cent).

Many Singaporeans also still appear to prefer purchasing travel insurance directly from insurers, with 46 per cent of respondents citing this as their preferred method. However, 35 per cent said that they would be open to purchasing ‘in-path’ travel insurance offered as part of the travel booking process, while a further 36 per cent said that they would be open to purchasing travel insurance directly from ‘travel players’, citing competitive pricing as their biggest motivation.

Ease of online claims was most popular among young married parents

Ease of online claims was of highest importance for travellers between the ages of 35 and 44 who were married and had children.

Among Generation Z travellers (aged between 18 and 24), the ability to personalise their plans to suit their tendency for more ‘adventure-style’ trips was most highly valued, while regular globetrotters tended to place higher priority on trip cancellation coverage, particularly with a view to the effect of sudden rises in Covid-19 cases which could lead to flight and accommodation cancellations.

Respondents were also found to appreciate value-added services offered as part of their travel insurance plan, with 39 per cent appreciating the arrangement of services for Covid-19 formalities, 12 per cent appreciating airport lounge access in the event of flight delay, and nine-per-cent saying they appreciate 24-hour telemedicine access.

According to data analyst GlobalData, Singapore’s general insurance industry in Singapore is expected to be worth US$5.6 billion in 2025, expanding at a compound annual growth rate (CAGR) of five per cent from SG$4.4 billion in 2020.