Why is travel insurance the next big opportunity for brokers?

It’s a new era for travel insurance.

Despite economic uncertainty, Canadians plan to spend over $14 billion on vacations this year, according to new data from Allianz Global Assistance, a leading travel insurance provider. Post-pandemic, travelers have become more risk-aware than ever, and almost 90% say they plan to buy travel insurance for their next trip.

“The pandemic has significantly shifted consumer attitudes around travel, forced a number of changes within the travel insurance industry, and shed new light on the peace of mind travel protection can bring,” says Lucy Hathaway, Allianz’s Chief Sales Officer. “While Canadians are highly aware of the need for travel insurance, they don’t necessarily understand what coverage is right for them. With travel approaching pre-pandemic levels, more and more Canadians are turning to their trusted insurance brokers for travel insurance and advice.”

Widespread staffing shortages and prolonged supply chain issues continue to make travel more unpredictable. Challenges like flight cancellations and delays have become more common, causing travelers to plan better and seek protection.

“The pandemic has forced people to think more about the ‘what if’ scenarios, and today, we all want to be prepared for the unexpected,” Hathaway says, adding that the majority of travelers now consider travel insurance as an essential part of their trip.

“At Allianz, we recognize brokers want to provide their clients with the best protection and advice,” Hathaway says. “We want to make it easy for brokers to fill this renewed demand and want to be there for policyholders in the moments that matter most.”

Opportunities to provide Canadian travelers with highly sought-after travel insurance are abundant for brokers — and the new data from Allianz proves why.

SOARING DEMAND

According to Allianz’s Vacation Confidence Study, conducted by Ipsos in November 2022, six in 10 Canadians plan to take a vacation in the next 12 months. “Canadian households are projected to spend around $14.3 billion on vacations in the upcoming year, eclipsing the pre-pandemic high recorded in Allianz’s 2019 annual survey,” Hathaway says, adding the pent-up demand for travel is clear.

Equally as clear from the data is the awareness of travel risk and the need for protection among consumers, she adds.

The study indicates the following:

  • 89% of Canadians who intend to travel also intend to be covered by travel insurance for their next trip.
  • 74% of Canadians say that travel insurance is equally or more important post-pandemic, with three-quarters of millennials believing the same.
  • Six in 10 Canadian travelers remain worried about the possibility of COVID-19 impacting their travel plans, with those aged 55-plus (67%) most concerned.

“The findings really hit home the fact that Canadians want to travel again, but they want to do it safely and securely,” says Hathaway. “And therein lies this exciting opportunity for brokers. Canadian travelers need guidance to find the right coverage for their unique trips and are counting on their brokers to help bring them the peace of mind they deserve.”

HELPING BROKERS SUCCEED

Allianz has evolved to empower brokers with the tools, data, products, services, and support brokers need to offer the right protection to their clients — quickly, easily, and confidently.

“In a post-pandemic world, we recognize that a customer-centric approach is key, and we’ve invested heavily in technology solutions to make our processes seamless for brokers and clients,” Hathaway says.

That’s why Allianz is proud to announce the launch of its new sales platform, AdvisorMax, and its fully refreshed outbound product suite — a complete end-to-end solution designed to give brokers greater flexibility, ease, and an all-around better experience while saving time.

“As Canadians continue to increase their vacation confidence and venture beyond our borders, we remain committed to being with them every step of the way and are ready to help them in the moments that matter most with value-added travel insurance and assistance services, such as as 24/7 virtual care and mobile claim submission services,” Hathaway says. “Planning your next adventure should be fun, not complicated. And that includes buying travel insurance.”

To accelerate your business growth, contact Lucy Hathaway.

Learn more about the Allianz advantage.

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