The provision of travel insurance, product offerings and current service model is changing.
So to is the understanding and application of travel safety, which is evolving along the same lines as travel insurance.
In particular, this change will be the most significant and pronounced over the next 3 years and will affect both business and leisure travellers, with a likely overlap or convergence of the two.
Hi, my name is Tony Ridley, CEO and founder at Intelligent Travel, a professional travel health, safety, security and risk management concierge company and I’d like to take a couple of minutes of your time to outline some of these significant changes and how they impact upon buyers of travel insurance or commercial travel risk management services.
Firstly, if we examine one of the most dominate trends within the travel industry, inclusive of both business and leisure travel, we see the intense pursuit and focus on the individual.
The change is being driven by the consumer, who knows and insists that they are not just a faceless group of travellers, they vary significantly from gender, age, experience and personal needs.
Collectively, the travel industry is embracing and developing products that speak to the personalisation of travel.
However, when we look at the travel insurance and travel safety aspects of travel, there is a significant and alarming gap when compared to or considering personalisation.
Currently, travel insurance products and offerings tend to focus on 3 very limited factors.
1. What type, if any, adventure activities you may engage in when you travel.
2. The country to which you plan to travel, and
3. What medical history or pre-existing ailments do you, the traveller have before you go.
These 3 questions form the sole basis of what is both the insurance and safety providers, and in many cases, employers… assumption or evaluation of risk.
The overall outcome is that it leaves a very vague, or unclear picture of what a traveller or the risk might really be like.
In the meantime, there are countless assumptions and more personal or contextual questions that are just not asked or prioritised.
And all too often, travellers, insurance providers and employers discover how inadequate this practice is, only after there is a preventable or avoidable event that results in harm, loss or disruption to the planned travel or travellers themselves.
All for the commercial convenience of providing a speedy sales option or signing people up as fast as possible, to then focus on the after incident assistance and expensive intervention services.
The process and service is neither personal, nor adequate when it comes to safety management of the traveller.
Most significantly, it is the total opposite of the broader travel industry evolution that can tell you your last 3 flights, preferred accommodation options, offer you the meal of your choice or accumulate frequent flyer points for you as an individual, as part of the more personal and focused travel service and support.
It doesn’t subscribe to the outdated and impersonal “one-size-fits-all” approach, which is the current standard of many insurance policy, service providers and business systems.
You can quickly verify this insurance and safety failure by reviewing several travellers to the same city, that clearly have varying personal circumstances such as age, gender, etc and find that they all share exactly the same policy, payment price and even safety rating. That is simply not possible.
Travel insurance and travel safety is changing, for the better. In particular, this is what we will see transform them both over the next 3 years.
Age old questions and standards around adventure activity, country of travel and medical history will remain…for the time being, however, less assumptions will be permitted and greater context and understanding of the personal traveller will be included in the process.
This will include the specific city to which they are travelling, modes of transport, duration of the journey, safety standards, local standards, preparation, experience and many other factors…just like the wider travel industry and personal approach provides right now.
The result will be a clear, personal and specific understanding and solution for the traveller.
Each and every traveller will get the best service, price and safety evaluation…specific to them. Not a general view of the crowd.
Individual consideration will be given to each traveller and their journey. Providing more accurate safety and insurance requirements, specific to them and the trip.
Each and every combination, traveller variance and journey nuance will be considered, with each traveller or evaluated, allowing for more targeted services, competitive pricing, elimination of wastage and a greater understanding of what they can do to be better prepared, safer or more insurable.
This is personalisation.
If the process, provider and final evaluation does not include individual and specific consideration for the traveller themselves, the city to which they travel, the specifics of the journey, duration of travel and all the business or leisure activities likely to be involved in, then it is neither personal nor useful for travel insurance or travel safety purposes.
Travel insurance, like house, car, contents and life insurance is changing, and becoming more specific to the individual.
Travel safety can only be supported by specific knowledge and understanding of the traveller, not through group assumptions or vague assessments of entire countries.
Over the next 3 years, travellers will experience personalisation of both their travel insurance and travel safety, understanding their own personal exposure, and providing for greater competitive offerings, based on only paying for what you need or what you use, not outdated or vague assumptions.
Thank you for your time, and we hope this analysis is helpful for you, your travellers or your business. If you would like to know more, or chat with us about this issue, please visit us at www.intelligenttravel.com.au, or just click the link with this video.