Market Trends of US Travel Insurance Industry
Increased Focus on Travel Safety and Insurance is Driving the Market Growth
With tourist uncertainty at an all-time high due to the COVID-19 pandemic, awareness for travel insurance has improved significantly. Travel insurance sales through Squaremouth.com surpassed pre-pandemic levels in the summer of 2021 and have continued to steadily rise as more people resume travelling. In 2021, sales were up 50 percent over 2019, and more than 200 percent over 2020. In the first two months of 2022, sales increased by 275 percent over the same period in 2021. Due to the pandemic, the rapid increase in Travel Insurance can be seen in the market. Therefore, it is the main key factor that is driving the insurance market.
Insurtech is dominating the Insurance Market
According to Susan Silfen, President of the US Travel Insurance Association (UStiA), stated that: 'One of the growing travel insurance technology trends attractive to the younger generation of travelers is the immediate electronic payment for approved profits for the all-too-common travel inconveniences like a missed connection, baggage delay, flight delay, or an airline's last-minute flight cancellation. Some travel insurance providers can track an insured's flights, recognize a covered delay or cancellation, and automatically deposit the covered limit into an account or debit card, reducing the need to file a claim with receipts.' Technology has been a key attributor for travel insurance's increased penetration in the US.
Seven Corners is leveraging technology to enhance the claims process via a program called Claims Your Way. Regardless of how consumers choose to file, the software is used to automatically assign a claim to Seven Corners employees based on experience and availability. This allows for ample time and attention for each claim. Claims Your Way then sends consumers an automated message with the name and contact information of the employee handling their claim and pushes the claim to the customer's account on sevencorners.com, making documentation and tracking easy to retrieve. Not only does this improve transparency, which is an ongoing goal for the industry, but it also simplifies the process and improves customer experience. Appeals and complaints regarding claims have decreased significantly since the program was launched.
