Travel insurance ‘We’re always learning’
A
IG Travel has been insuring travellers since way before international tourism became a mass pursuit and travel a
global industry. Next year will mark the 100th anniversary
of the founding of the company that became AIG and Jeffrey Rutledge, AIG Travel president and chief executive, notes: “We sold our first travel insurance policy in 1939.” He says: “When I started in travel
insurance almost 20 years ago it was just travel agents, tour operators and cruise lines that offered travel insurance. Now, most sellers of travel offer it. The product can also be obtained through banks, credit card companies and brokers. “The way people buy the product has changed – now many companies offer travel insurance – and the motivation of consumers [buying travel insurance] is very different by country.” Rutledge suggests the ‘health care
governance’ of a country offers the best guide to its travel insurance market. He says: “Historically, the way people thought about travel insurance was as an extension of what they know or don’t know about their health-care system. “The UK travel insurance market is the most mature in the world. In the UK, everyone knows how health care works and they know they need to consider health care when they travel. “You see multiple brands of travel
insurance on the London Underground, for
EUROPE’S INSURANCE MARKET By country share
FIGURE 46: 23.5% 5% 6% 11% 16% 21% 17.5%
UK France Germany Italy
Netherlands Spain Other
Source: Insurance Europe Figures rounded 17% 18% 32% CLAIMS 33% % OF 35% PAYMENTS
2016 claims data Source: ABI
% OF
The way people buy travel insurance has changed, says Jeff Rutledge, AIG Travel president and chief executive
example. You barely have travel agents in the market. It’s a commodity, consumers know about it and seek it out. Someone buying a package holiday will say ‘I need travel insurance’. “That is rare in the global marketplace. In the US, people don’t know what their health-care coverage is. It varies by state. People go to the doctor, hand over a card and hope for the best. “They don’t tend to think of health care
when they book travel, but they don’t want to lose their money – so when they think of insurance it’s about not losing their money.” Rutledge says: “It’s a tremendous challenge to make consumers around the world aware.”
Health and wellbeing AIG Travel’s products by and large fall into two areas, with a third “emerging”, says Rutledge.
“The first is around the health and
wellbeing of the traveller – and that tends to motivate people in the UK. “Second, there are all the inconveniences
in the travel experience – and that tends to motivate people in the US.” He notes “There is more interest in the
product whenever anything happens to disrupt travel.” That can include the spate of air traffic
THE UK is Europe’s biggest travel- insurance market, ahead of France
(Figure 46). Medical claims account for more than half the amount paid out to UK claimants although more claims are for cancellation (Figure 47).
control strikes in Europe this summer and last, or the high-profile failures of carriers Monarch Airlines in the UK and Air Berlin in Germany last autumn. Rutledge says insurance against flight
TRAVEL INSURANCE CLAIMS 6%
FIGURE 47: Medical 5% 54% Cancellation
Lost bags/ money Other
36 | Travel Weekly Europe Report 2018
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