Market research firm YouGov has released its latest whitepaper, which provides an in-depth look at how different groups of Americans approach insurance, and how providers can utilise this information to maximise sales and retention
The report, titled A look at the insurance industry: What Americans think of property and casualty providers, also reveals the travel habits of Americans, identifying how different demographics engage with travel insurance.
According to the findings, today, only three per cent of Americans are covered by a travel insurance policy. And of those that are, it appears that millennials make up the majority. The report notes that 38 per cent of policyholders fall between the ages of 23 and 38. Baby boomers also make up a large share, at 27 per cent, while generation X and the silent generation are the minority policyholders, making up 18 per cent and 15 per cent respectively.
The study also revealed that travel insurance policyholders are most likely to come from households that make over US$60,000 a year (57 per cent of the national representative).
Despite such a small percentage of the American nation actively purchasing travel insurance policies, YouGov notes that with 64 per cent of Americans planning vacations this year, there’s a market of 160 million needing travel insurance. So, what coverage are these holidaymakers looking for and how can insurers engage with them?
YouGov identified that 52 per cent of leisure travellers who purchased insurance for their last trip opted for a policy that covers trip cancellations. On the other side of the coin, 42 per cent of travellers who did not take out a policy argued that they felt it wasn’t necessary for the type of vacation they were taking. Moreover, a third of the same group said that they didn’t perceive any risks when going on vacation. “Increasing demand for travel insurance, then,” said YouGov, “comes down to helping prospective travellers identify the things that have or can go wrong while traveling.”
The study then goes on to detail opportunities that will help insurers reach out to these travellers, including an overview of travellers’ preferred booking times and platforms, as well as their motivations.
Sometimes, it’s not a case of sheer bloody-mindedness, but simply a lack of information that causes holidaymakers to forego travel insurance. This latest resource from YouGov will provide insurers with valuable insights into how to reach out to and appeal to today’s travellers, keeping them safe and offering them peace of mind when embarking on their latest adventures.
For further detail, download the full report available on the YouGov website.