By: Brad Neal, Published on August 31, 2017 05:21 PM, Last Update on August 31, 2017 02:23 PM
Customers are increasingly gambling by ignoring to purchase travel insurance. The insurance gap in the travel market comes from a view that insurance is too confusing, purchasing is complicated, and cluttered.
These feelings are shared with auto insurance, but while vehicle coverage is mandatory, in many instances travel insurance is not. A growing insurance gap is being driven by young travellers, who will often risk not having coverage rather than complicate themselves by buying protection.
Stacey Hughes-Brooks, head of travel at RBC Insurance says brokers must play a role in simplifying the travel insurance market. Customers don’t want to read small print and are in many cases unclear on what their policy offers and protects them from. Hughes-Brooks believes brokers can help customers understand coverage and make the process of buying policies easier:
“A lot of travellers assume they have coverage through credit card coverage or a group plan, so they dismiss the idea of buying supplementary travel insurance,” Hughes-Brooks told Insurance Business. “Clients often make these big assumptions without doing their homework or making the necessary phone calls to ensure their coverage meets their needs.
“The gap, in summary, is that many people don’t really understand what existing coverage they have and what coverage they need before travelling. There needs to be a widespread education campaign through travel insurance committees, associations and possibly even some government advisories.”