The Impact Of The COVID-19 Pandemic On Travel Insurance
According to a survey, demand for online travel insurance policies increased in FY21–22 compared to pre–covid levels in FY19–20.
The survey, which was conducted among consumers in the Indian markets, examined how the pandemic had affected travellers’ attitudes and expectations and discovered that they are now more open to buying travel insurance to protect against potential monetary losses. 3,378 travel insurance claims were resolved by an insurance company, nearly 1.37 times more than the previous year.
According to the insurer, one-third of respondents had purchased insurance for travel abroad following the pandemic. 786 travellers from both domestic and foreign countries participated in the survey.
According to our research, the outbreak has increased people’s understanding of the value of travel insurance. Only 50% of international travellers had travel insurance before the pandemic; that percentage rose to 76% after the pandemic.
Customers are more cautious and seeking adequate medical insurance, including COVID-19 coverage for international travel. Most travel-related purchases have been made digitally; this trend is only growing. Insurance for travelling abroad, once considered unnecessary, is now a requirement. We see a massive opportunity with “revenge travel” again in style.
Even though laws and regulations are constantly changing, some nations have made it a requirement for visitors to have travel insurance, either by including it in the cost of their visa or entrance fee or by demanding proof of coverage that provides for Covid-19. Travel insurance is necessary for all vacations, and people are getting it on the travel insurance app.
The survey’s key findings are as follows:
- Pre-pandemic awareness of purchasing travel insurance for overseas trips was 76%, and post-pandemic awareness increased to 90%.
- The percentage of people who purchased travel insurance for international trips increased to 76% in the post-pandemic period from 50% in the pre-pandemic period.
- Of those who intend to travel abroad in the future, 94% will purchase travel insurance. It also includes student travel insurance.
- Travel to the US/Canada (1.6x), Europe (1.4x), and Australia (almost similar) has increased since the pandemic.
- Since the pandemic, fewer people are travelling for leisure or educational purposes than they once were.
- Last year, there was an increase in trips abroad, which is primarily due to the younger age group (25–35 years). Student travel insurance also contributes to this.
- Compared to before the pandemic (2 weeks), trips have lasted 10–12 days less.
- In addition to providing coverage for unexpected hotel stays, medical costs for travellers will continue to be a significant factor in why they purchase travel insurance (52%).
As we can see, travel and, by proxy, travel insurance is rising. Post-pandemic, travellers are much more careful about going on a vacation without the much-needed safety net of travel insurance. Revenge travelling is fueling this growth too.
One thing is clear; Covid-19 has ensured that travel insurance is here to grow. So be prepared for travel and get your travel insurance beforehand. It is wise to get one when you are done booking your tickets.
Get insured anytime, anywhere! Check out Bajaj Allianz General Insurance website to learn more and download the app now.
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