Allianz outlines current trends in travel insurance industry
Allianz outlines current trends in travel insurance industry | Insurance Business Australia
Travel
Allianz outlines current trends in travel insurance industry
Traveller behaviour and expectations pre- and post-COVID compared
Travel
By
Roxanne Libatique
Allianz Partners explored the trends shaping the travel insurance industry in 2023 in the latest Allianz Global Travel Summit in Paris.
Three key topics emerged during the summit:
elevated levels of demand for insurance;
increased economic and geopolitical volatility; and
higher customer expectations.
Demand for travel insurance
According to Allianz Partners, the high number of people travelling in 2023 resulted in consumer interest in travel insurance surpassing pre-COVID-19 pandemic levels.
In Australia, purchase intention for domestic travel jumped from 15% pre-COVID-19 to 35% post-COVID-19. Meanwhile, purchase intention more than doubled for international travel, from 32% pre-COVID to 65% post-COVID.
The high demand contributed to significant growth in Allianz Partners’ travel business in 2022, achieving revenues of €3.05 billion, an 80% year-on-year increase and the company’s best-ever performance. Customer numbers have also remained strong through the first months of 2023, marking significant year-over-year growth.
“We continue to see a shift in customer behaviour towards travel insurance with an increase in consideration and perceived value. Australians have a strong desire to travel, with the international travel market returning in leaps and bounds despite the uncertain economic signals,” said Damien Arthur, executive head of travel at Allianz Partners Australia. “To ensure we continue to provide assistance to our customers in their time of need, we invest in future solutions and take advantage of our networks in the Allianz group, globally.”
Allianz Partners’ findings on traveller demand align with the analytics firm Research and Markets’ recent study that found that the global travel insurance market has grown from US$19.14 billion in 2022 to US$22.44 billion this year at a compound annual growth rate (CAGR) of 17.3%.
Other trends shaping the travel insurance industry in 2023
Allianz Partners identified four other trends shaping the travel insurance industry in 2023 and beyond:
focus on platforms and technology;
ability to deliver highly personal, individualised services when dealing with complex and sensitive situations;
empowerment rather than interrupting customers;
sustainability.
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