Travel Insurance Underwriting in 2024: What You Need to Know

Global Travel Insurance Market News?

?? 2024 Travel Insurance Underwriting: Trends, Challenges, and Innovations

?? How is Travel Insurance Underwriting Adapting to Change?

Travel and health insurance underwriters are facing the following challenges due to the COVID-19 pandemic and evolving consumer needs:

• Evolving Risk: The pandemic has disrupted historical data, challenging underwriters to balance attractive coverage with profitability.
• Consumer Expectations: Customers seek value, flexibility, and peace of mind, requiring underwriters to enhance efficiency and customer experience.
• Post-Pandemic Challenges: Changes in consumer behavior and risk analysis require underwriters to monitor evolving risks and adapt pricing accordingly.
• Environmental and Economic Factors: Challenges like wildfires and global inflation impact underwriting, necessitating flexibility and collaboration.

Source: Haigh, L. (2023, November 30). Travel and health insurance underwriting: best practice makes perfect. ITIJ

?? Automated Underwriting: A Boon or Bane for Travel Insurance?

Automated underwriting represents a major leap forward in travel insurance coverage for pre-existing conditions. Along with this leap are opportunities and challenges:

• Automated underwriting aims to streamline travel insurance sales and broaden access for those with significant pre-existing conditions, potentially simplifying deployment.
• Using algorithms to analyze medical data can reduce the risk of human error in assessing the risk associated with pre-existing conditions and improve consistency for all applicants.
• Insurers can make more accurate risk judgments by utilizing global data, expanding coverage to more customers, including those with complex conditions.
• Automated underwriting may not be suitable for highly complex or rare conditions, and it may overlook certain lifestyle factors considered in human assessments.

Source: Collingwood, J. (2023, November 30). Providing insurance for pre-existing conditions. ITIJ.

?? US insurers faced US$26.9 billion net underwriting loss

• The US non-life insurance sector faced its largest net underwriting loss in 2022 at $26.9 billion, driven by a 14.1% increase in losses and expenses, outpacing premium growth.
• Rising loss costs, including inflation and catastrophes, have made profitability difficult, leading to challenges in raising prices to cover expenses.
• Reinsurance rates are expected to stay high due to reinsurers' insufficient earnings, with US demand for catastrophe reinsurance expected to grow by 15% by 2024, further impacting prices.

Source: Deloitte. (n.d.). 2024 global insurance outlook.

Travel Insurance Partnership Movements

?? Collinson - Starr Insurance

Collinson, a global leader in customer benefits and loyalty programs, has teamed up with Starr Insurance to introduce a real-time parametric travel disruption insurance product.

?? Battleface - insurance.com.au

Battleface, known for its customizable insurance products, has partnered with insurance.com.au to offer competitive coverage options for Australian customers.

?? Optalitix - Quantee

InsurTech Optalitix and dynamic insurance pricing platform Quantee have formed a strategic partnership to revolutionize insurance pricing.

Our New Blog Articles

?? AI-Enhanced Underwriting and Pricing in Travel Insurance Pricing

Discover how Artificial Intelligence (AI) is revolutionizing underwriting and pricing in travel insurance, including:

• The impact of AI on travel insurance companies and travelers
• Traditional underwriting versus AI underwriting
• How AI harnesses large and diverse data sets for risk assessment
• Success stories of AI implementation in insurance underwriting
• Challenges in AI implementation and the future of AI-enhanced underwriting

Read More

?? Best UI/UX Strategies For In-Path Travel Insurance in 2024

Explore the top UI/UX strategies employed by the leading airlines for showcasing travel insurance in-path:

• The importance of UI/UX in presenting travel insurance
• Single product display strategy for captivating and building trust
• Clear distinction between options with or without travel insurance
• Standalone cancellation-focused plans for flexibility and value
• Actionable steps for travel insurers to optimize UI/UX for in-path insurance sales

Read More

Our New Research?

?? Launching Tomorrow: 2024 Top 50 Airlines Travel Insurance Benchmark?

Introducing our latest report, “2024 Top 50 Airlines Travel Insurance Benchmark”.? This year, we utilize web traffic to benchmark the complete suite of ancillary services provided by the top 50 airlines. Beyond travel insurance, our analysis explores the comprehensive array of services that airlines offer (i.e. lounge access, priority boarding, meal upgrades, seat selection), and other innovative services.

A sneak peek of what’s included in this report:

1. 2023 vs 2022 vs 2021Airline Travel Insurance: By The Numbers
2. Innovation In Ancillary Offerings Best in Airline Ancillary Offerings: Travel Insurance and Beyond
3. UI/UX Best Practices Best Practices for UI/UX Enhancement of Travel Insurance Best in Airline Travel Insurance UI/UX Design
4. Travel Insurance Screenshots IN-Path Travel Insurance Travel Insurance White Label
5. Other ancillaries

Here's what you can gain from this study:

• Airlines Market Positioning Insights
• Airlines Travel Insurer Market Share
• User Experience Trends
• Conversion-Boosting Strategies
• Partnership Opportunities

?? We're launching the report tomorrow on the February 27th! Keep a lookout on our Linkedin page for the report access