Travel insurance industry urged to offer better value policies for consumers
As new travel insurance figures reveal 69 per cent of the British public who have had travel insurance say they have never made a claim against a travel insurance policy, UK travel App specialist Aquarium Software says the industry needs more than ever to make the case for the value of travel insurance. The research, undertaken by YouGov on behalf of Aquarium Software, shows the ‘never claimed’ figure rises to four fifths among 25-34 year olds, while only 17% per cent have claimed in the last ten years. As three fifths of over 55s have also never claimed, is travel insurance in danger of being seen as a cost too far, during leaner economic times?
The new research comes amid horror stories of people without cover facing bills of hundreds of thousands of pounds to be flown home, while the Ryanair saga revealed the misery faced by those not insured for so-called knock on costs. Aquarium Software says that travel Apps will give the industry the tools to keep prices down, and remove the small print exclusions that can see the market realise its potential – if the 24 per cent who only cover their travel plans with insurance sometimes or never can be persuaded to change their minds, that is.
“The headline figures from this new research are at first glance amazing, but it is important they are seen in context, rather than used as an easy excuse not to have travel insurance,” said Mark Colonnese, Aquarium Software Director. “With so few people claiming, the industry simply needs to ensure we get better perceived value from travel insurance,” Colonnese added. “In defence of the industry, the costs involved in a serious claim can be enormous. The cost of an air ambulance home, for example, can be in excess of £100,000,” added Mark. “Given how few of us ever claim, low premium expectation and frustration with exclusions is understandable. However, on the flip side, most of us do not go for cheap home or motor policies if they don’t offer adequate cover, yet happily plump for cheap holiday insurance, hundreds or thousands of miles away from home - where repatriation and medical costs can rapidly spiral out of control. Apps can positively change these dynamics,” concluded Mark.