The right coverage UK market stands apart


adding: “The price of multiple-trip products has dropped, especially in the UK. People are more open to travelling for short breaks. “Younger travellers tend to be less likely to


buy insurance than older groups, so you want to try to educate them on the need to buy. “In China, less than 10% of outbound


travellers are insured, a significantly lower percentage than in the US and Europe. There are significant opportunities for growth in China, therefore, and in India. “In Europe, many outbound travellers are


insured, but a significant proportion have insurance through their bank accounts [or credit cards] although the products are not always fit for purpose. Ultimately, what is important is the right coverage, and that is not always uppermost in customers’ minds.” Howard adds: “We work with partners on optimising our proposition to different


The UK market is now very much driven by comparison sites and by price


customer groups. For example, if you are planning a five-day trip to Switzerland in January, you are likely to be skiing, so we may present a message with a greater emphasis on medical risks. That could be done through machine learning to some degree. “In more mature markets like Europe, the older demographic is important and becoming far more valuable. Older customers continue to grow in numbers and to demand travel and protection when they travel. We need to be able to screen and understand customers to provide the right price.” It is hard for an insurer to build brand


PRICE comparison sites dominate the UK travel insurance market and play a substantial role in


purchasing behaviour more widely in travel (Figures 55 and 56).


FIGURE 55: HOW CONSUMERS PURCHASE ONLINE, BY MARKET % of those buying online who used


% 100


20 40 60 80


0 EU


Germany France UK


*Includes ‘almost always’ Source: Eurostat, 2016 data


loyalty among consumers. Howard says: “If you have a claim and it is handled well, that creates loyalty. But you could go through several renewals before you have the opportunity to support the customer in their hour of need.” He dismisses the idea that over-regulation holds back the sector. “Regulation is important,” he says. “It is integral to our business. It exists in every market to ensure consumers are protected and creates a higher level of awareness. “The biggest challenges are ensuring customers understand the importance of protection and articulating clearly to customers what they are buying. No one has really got to grips with that. That is a challenge the insurance industry faces in every sector across all products and markets.” But he adds: “Travel insurance works within the travel industry. We are as much a part of travel as of the insurance industry, and wherever travel grows the travel insurance market grows with it. That is exciting.” �


FIGURE 56: ONLINE PURCHASING BEHAVIOUR – All adults %


20 40 60 80


0 EU Germany France UK Italy EU Germany France 40 | Travel Weekly Europe Report 2018 UK Italy EU Germany France UK Italy % USE MULTIPLE RETAILERS’ SITES % USE COMPARISON SITES % USE CONSUMER REVIEWS


Almost always Total % use


Sometimes


Source: Eurostat, 2016 data


27% 17% 44%


27% 28%


55% 34% 19% 53% 45% 24% 69% 13% 9% 22% 25% 17% 42% 45% 20% 65% 13% 24% 39% 25% 31% 56% 11% 9% 20% 25% 19% 44% 36%


25% 25%


27% 52% 39% 31% 70% 12% 9% 21% 61% 30% 85% 48%


Sometimes* Almost always


55% 68% 38% 84% 20% 78%


52% 52%


48% 81% 60% 82% 37% 87% 50% 75% 45% 80% 46% 75%


81%


Multiple retail sites Comparison sites Consumer reviews Multiple retail sites Comparison sites Consumer reviews Multiple retail sites Comparison sites Consumer reviews Multiple retail sites Comparison sites Consumer reviews


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48