The corporate travel insurance sector has faced a challenging three years, but people are once again on the move and more conscious than ever of the vital role corporate travel insurance plays when things don’t go to plan.
It’s clear that the travel tide has turned. Over the past 12 months, the market has not only recovered but surpassed its pre-pandemic levels. With experts foreseeing sustained growth in the coming years, the corporate travel insurance sector is poised for a resurgence post-COVID-19.
Cancellation insurance in demand
While all product segments were disrupted from 2020-22, there are clear signs they have bounced back but it is insurance with cancellation provisions that has surged most in popularity. In the Australian market, cancellation insurance now accounts for 39.5 per cent of products and segments, topping the list ahead of emergency medical insurance with 33.2%. This would indicate the lessons of the pandemic have been learned, with consumers keen to avoid the financial consequences of disruptions to their journeys. Another notable trend that has gained momentum is the preference for single-trip policies, which allows travellers swift and cost-effective access to coverage for upcoming holidays.
Cost-of-living challenges
While awareness of the need for corporate travel insurance is on the rise, there are storm clouds on the horizon in the form of cost-of-living pressures. Befitting a societal concern that is now regarded a ‘crisis’, travellers are increasingly looking for savings where possible when searching for corporate travel insurance. This poses a unique challenge for insurers, with demand to be offset by the growing need to offer coverage that is more accessible and affordable. One option is the adoption of dynamic pricing models that factor in variables such as travel destination, time of travel and individual risk profiles.
Partnering with experts
One of the keys to boosting revenues is accelerating corporate travel claims resolutions and this is where many insurers are embracing the opportunity to partner with Gallagher Bassett. Resolving claims promptly and accurately is essential for both our clients and their customers, which is why we equip our claims experts with robust system controls, first-rate training and leading technology. Working with 24/7 emergency assistance partners, our specialists can respond to claims across the world in real-time and in line with policy wording, enhancing customer experience while reducing claims leakage and overall costs.
Partnering with Gallagher Bassett also allows insurers to gain access to industry-leading technology including our award-winning Luminos platform, an advanced claims management and workflow platform with inbuilt risk management controls. This means our clients not only avoid investing precious capital in similar IT infrastructure but benefit from the services of our expert digital analysts who can provide them with better data insights. The reward? Faster resolutions and proven reductions in the average life of travel claims.
At a time when cheaper policies are increasingly on the agenda, our commitment to efficient and accurate claims handling is helping minimise the financial impact and provide better outcomes for both insurers and travellers.
Contact us to learn how Gallagher Bassett can support you.
