The majority of travellers are demanding insurance that is embedded, event-driven and digital, according to recent research from Companjon.
The Pan-European InsurTech company that specialises in delivering fully digital experiences from embedded insurance, conducted its fourth extensive survey across the EU and UK.
The report, titled ‘Embedded Insurance: Driving The Travel Industry’s Top And Bottom Lines’, uncovers evolving consumer behaviours and demands toward embedded insurance when booking travel experiences.
Companjon commissioned global data and insights firm Dynata, to survey more than 5,000 participants across major European markets: France, the UK, Germany, Italy and Spain.
The report revealed that travel-related embedded insurance products prove to be an ancillary revenue opportunity for online travel companies as consumers overall showed a strong appetite for cover that provides flexibility and are event-triggered.
These top-performing products include Cancel For Any Reason (90%), Luggage Loss Insurance (85%) and Delay Insurance (84%).
It also showed that the majority of travellers, particularly 25-44 year olds would consider purchasing embedded insurance mostly due to automated claims processing, instantly fixed payouts and reliability of service.
Companjon said this comes as no surprise with millennials being recognised for their hyperconnectivity and digital expectations when it comes to purchasing goods and services.
Other insights relevant to the travel and activities industries included that embedded insurance influences switching behaviours in travel and mobility users. According to the survey, 64% are likely to switch providers if they were offered Cancel For Any Reason, 58% if offered Luggage Loss Insurance and 56% if offered Delay Insurance.
In addition, over 40% of consumers would choose embedded insurance if It gave them the flexibility to cancel the purchase and be reimbursed instantly.
Matthias Naumann, Companjon’s CEO, said, “Customers see the relevance in digitised insurance products and are demanding to be offered them during the purchasing journey on their favourite booking platforms.
“As seen by our own partners, insurance products that are embedded and digitized across the entire user journey allow them to gain new revenue. In a digital-first world, global platforms should rethink the role embedded insurance can play for better customer experiences, increased loyalty and greater revenue.”
You can find the full report here.
Earlier this year, company Companjon teamed up with neobank Novus to transform UK customer experiences in insurance for flight delays.
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