just want a flight and hotel they go online. “In the UK, 6%-7% of consumers booking with an airline or OTA buy travel insurance at the same time, and almost the same proportion in Germany. It is quite low, but this does not include those going direct to brokers. “Another difference is in the use of credit


cards. In France, all credit cards include repatriation assistance and some include cancellation insurance, so most card-holders won’t buy separate travel insurance. But in Spain, for example, this kind of insurance is not included on a credit card.” AIG Travel is part of a credit card


programme with Mastercard. Yet De Contenson notes that if a traveller is going to the US, “the level of cover provided for free with a credit card is likely to be too low” to provide adequate medical cover”. He says: “The real risk there is not having


sufficient cover in place for the countries a traveller is visiting. If you go to the US and are hospitalised for a month the bill may be double the amount covered by your travel insurance and you will be left having to pay the difference.”


Travellers are better informed In the past, says De Contenson: “It was not uncommon for consumers to be unaware of the levels of cover they had in place when travelling abroad. “Now travellers are better informed


and more aware of the need for insurance,


especially if they buy from operators or airlines.”


He points out: “In France, Germany


When any travel provider can sell travel insurance, it leads to a higher rate of sales


and Italy, every airline and tour operator is allowed to sell travel insurance.” This differs in the UK, where insurance is


overseen by the financial services regulator, the Financial Conduct Authority (FCA). Since 2009, any UK travel business wishing to sell travel insurance must either be directly authorised (licensed) by the FCA or act as an appointed representative of a regulated firm. As a result, says De Contenson: “In the


UK, more people go to a specialised travel insurance broker. It is one of the biggest differences to other countries in Europe.” He says: “When any travel provider can


sell travel insurance, it leads to a higher rate of sales. We were afraid other countries would follow the UK.”


That has not happened, but the level


of regulation is increasing. De Contenson argues: “There is more and more regulation [and] if it becomes too complicated [to purchase insurance] the client will not buy it.” But rather than European regulators


EUROPE’S non-tourism population – the proportion of adults who make neither domestic nor international overnight trips – is surprisingly high (Figure 62). Italy shows a


marked offline preference among a significant minority (Figure 63).


FIGURE 62: NON-TOURISM POPULATION % no outbound or domestic overnight trip, 2016


%


10 20 30 40 50 60


0 58% EU 38% 34% 25% 48% 33% 39%


Figures rounded Source: Eurostat


27% 47% 49% 52% 36%


Germany France Spain Italy UK


% of non-travellers who took no trip for financial reasons


%


10 15 20 25 30 35


0 5


EU


Germany France Italy UK


moving to simplify the process, he says: “There are more and more requirements and information to give to the client. It is supposed to make the client’s life easier, but in my view it is making it more complex.” This could be one reason, he suggests,


why growth in travel continues to outpace growth in travel insurance.


FIGURE 63: % WHO DON’T SHOP


ONLINE OUT OF PREFERENCE % all adults


�


Figures rounded Source: Eurostat


Travel Weekly Europe Report 2018 | 43


2009 2015 2017


2009 2015 2017


2009 2015 2017


2009 2015 2017


2009 2015 2017


7% 7%


10%


14% 13% 12%


25% 18% 16% 21% 32% 34%


20% 20%


23%


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