2017 could be the year of travel insurances

Travel insurances are an important segment of the Travel & Tourism industry and the market is subject to several political, medical and latest events factors. According to the Berkshire Hathaway Travel Protection’s (BHTP) white paper report released in February, based on surveys and a predictive global-travel model, 36% of tourists expect to buy more travel insurance in 2017. Moreover, the report underlines that 61% of travel agents projects that this year will be more profitable for travel insurance companies.

Above all, the report highlights the key factors that are foreseen to impact the travel insurance industry during 2017.

One of the most important components is related to the number of travels, which are globally increasing. In fact, 41% of respondents stated that they are going to travel more to foreign countries in 2017. As international travels for leisure purposes are usually more covered by travel insurance (39% against 16% of domestic travels), sales in this segment will probably rise.

As the number of travels is rising, the cost of travelling is rising as well. For this reason, respondents stated they are more likely to cover their travel with an insurance as the cost is higher. As we have already reported, some of the emerging targets prefer to book their travels offline. As 94% of surveyed travel agencies offer insurance along with sales, the number of sold insurances is expected to grow.

According to analysts, new travel trends are going to define 2017. Cruises, for example, are a recovering sector, especially river cruises along with new concepts of sailing. As the interest for cruising grows, more travel insurances are projected to be sold. In fact, 39% of respondents expect to take more river cruises in 2017.

Moreover, there is an increasing demand for experience in travels, which can be found in adventure travels. In fact, 76% of travel agents foreseen adventure travels to be one of the hottest trends in 2017. As this kind of holiday is usually considered dangerous or risky, travel insurances should benefit from this segment.

Issues related to flights, such as delays and cancellations, led 71% of respondents to affirm they bought more travel insurance in 2016. Analysts foreseen further benefits from this segment.

Finally, concerns from terrorism threats led the rising of travel insurances sales in 2016, and 12% of respondents affirmed that is one of the main reasons for buying more insurance in 2017.

At Twissen we observed that, in spite of the global uncertainty, the Travel & Tourism market is still resilient. New opportunities are rising from this unsteady period, and being aware of them can create interesting business. Demand for travel insurance is growing.