TravTalk India Online Magazine
A recent survey by ICICI Lombard has shown that an increased proportion of customers depend on digital channels to buy travel insurance, even as 94 per cent will purchase travel insurance for their trip abroad soon.
In a bid to understand customer perceptions towards travel insurance, ICICI Lombard conducted a survey to understand Indian travellers’ purchasing behaviours. The survey brings to light many aspects, including the difference in perception between leisure and business travel, willingness to purchase insurance and the importance of travel insurance in current scenarios as well as awareness on COVID-related coverage. Apart from that, it highlights that international travel in the aftermath of the pandemic is more purpose-driven, i.e., for business/ work and medical reasons.
Travel insurance rises
Sanjeev Mantri, Executive Director, ICICI Lombard said, “Our research indicates that the outbreak (of COVID) has raised awareness on the importance of travel insurance. Before the pandemic, only 50 per cent of international travellers purchased travel insurance, but after the pandemic that number has risen to 76 per cent. Customers are increasingly cautious and seek adequate medical cover, including COVID-19 cover for overseas trips. The bulk of travel purchases always took place digitally, with the numbers now only increasing. Once perceived to be not so important, travel insurance is now a necessity. With ‘revenge travel’ now back in vogue, we see a huge opportunity and are delighted to note that one-third of respondents chose ICICI Lombard as the preferred partner of choice.”
It was observed that 94 percent of those planning to travel overseas will subsequently purchase travel insurance for their trip.
High digital adoption
The survey recorded that almost one-third of customers looking for travel insurance visit the insurance company websites to purchase the travel insurance, while the other 30 per cent purchase from online aggregators and online travel platforms.
More than a commodity
The survey indicates the impetus of pandemic driving travel insurance from being just a commodity to a necessity as post-pandemic, awareness and adoption of travel insurance increased significantly. COVID coverage is the key benefit travellers seek while looking for travel insurance, not just medical coverage as more than 1/4th of customers bought travel insurance policies due to a COVID medical cover.
