With the rise in globalization, frequent traveling – whether domestic or international has become a part of life. And it’s not surprising that travelers may have to face unavoidable situations or issues that cost them money and peace of mind. Some of these issues include trip cancellations due to some natural disaster, riot, etc., baggage delay or loss, medical emergency, to name a few. Therefore, it becomes very necessary for travelers to have travel insurance in place as it rescues them from these unpleasant situations, thereby curtailing the losses to naught.
The travel insurance market, especially in Europe, is booming. The growth is attributed to factors such as the rise in tourism, increasing travel rules and regulations, and growing baby boomer travel. Moreover, new technological developments for the travel insurance industry offer many opportunities for market growth. As per the report by Allied Market Research, the Europe travel insurance market is likely to accrue a sum of $7,583 million by 2023, growing at a CAGR of 5.9% during the study period, 2016 – 2022.
Companies in the travel insurance space are either introducing new policies or are looking to expand their businesses far and wide in order to grab a greater market share. World Nomads Group (WNG), one of the fastest growing travel insurance companies in the world, recently announced its plans to expand its business across Europe to enhance a travelers’ experience. Consolidated Hallmark Insurance Plc, a leading general business insurance company, launched a travel insurance policy called CHI Plc Travel Insurance to ease transactions and better serve its customers. Austria-based Uniqa Insurance Group launched an innovative insurance model called Cherrisk in Europe with the aim of expanding its insurance business across the region.
WNG Expands Business in Europe
In November ’18, World Nomads Group (WNG) announced its business extension plans in Europe with the aim of taking greater control over the entire customer experience. It now supervises its European travel insurance business operations with the launch of their own European managing general agency (MGA). The Australian travel insurer uses this MGA to distribute and sell travel insurance in Europe and offer all claims and insurance services to its customers. According to Michael Callaghan, CEO at WNG, the enhanced operating model helps them enhance the capacity of the firm to operate in global markets along with supporting its growth goals. The MGA also allows them to better manage the design and pricing of products. The setup of MGA led WNG to establish a new office in Ireland that houses over 25 people to support its European operations.
New Travel Insurance Product by Consolidated Hallmark Insurance
In September ’18, Consolidated Hallmark unveiled a travel insurance policy namely CHI Plc Travel Insurance with the aim of increasing the penetration of travel insurance across the world, including countries in Europe, Asia, Africa, and the U.S. Along with this, the company also launched digital premium payment channels in order to ease the transaction process with its customers. According to CHI, the plan covers the expenses incurred due to trip cancellation, compensation due to expenses incurred for delayed departure, medical expenses and hospitalization during the trip while abroad, and cost of replacement of up to the pre-agreed amount covered by the policy in case of loss of luggage. In addition, the policy allows the user to upgrade it to include injury that may occur while engaging in winter sporting activities during the trip. Regarding the duration, the cover is available for short trips and up to a period of twelve months and can be renewed thereafter. Special plans are also included in the plan to address the demands of pilgrims and students.
Uniqa Unveils Cherrisk Insurance Model
In September ’18, Uniqa announced its plans to expand its innovative Cherrisk model throughout Europe. Created by the Hungarian branch of Uniqa, the model is more than an insurance plan. It features a user-friendly interface and allows users to access home, car, accident, and travel insurance policies through an online interface. The interface also enables a user to settle claims via video calls. In addition, the model provides certain types of options to help learn about damage prevention and client safety, which enables users to gather cherries. Cherries can be used to reduce insurance fees or support social initiatives, thus making communities safer and happier. Wolfgang Kindl, the projectʼs international sponsor, and CEO of Uniqa International AG said, “We have always considered Hungary as an innovator. At our subsidiary in Hungary, not only financial indicators have changed in the past few years but also the philosophy of customer services. As a result, based on 45,000 customer ratings in 2018, our services received 4.2 on a 5-point scale. That is the reason why we supported the implementation of Cherrisk when Krisztián contacted us about it.”