As air travel recovers from the pandemic, demand travel insurance increased as some countries continue to require visa and import restrictions due to COVID-19. While these needs have fallen off, demand for travel insurance continues to see growth, according to Megan Moncrief, chief marketing officer for Squaremouth, Inc.It is noted that the reason why travelers are buying insurance is evolving.
“Interest in COVID and COVID-specific announcements is waning, but with the increase of travelers who need insurance for delayed luggage and other problems on the plane,” said Moncrief .
As the airlines stumbled from the epidemic and faced many problems that caused delays, cancellations and lost luggage, the benefits of providing insurance became easier for travelers to understand. During the summer, when airlines struggled with staffing problems and delays, travel insurance saw a 70% increase in sales, according to Moncrief.
Looking at data from this past winter travel season, Squaremouth saw a 120% increase in searches for bag discounts and 85% off on purchases. Lost baggage policies led to a 101% increase in sales, while shared lost connections saw an increase in sales. value is 138%.
In addition, Moncrief said that traditional travel insurance buyers – retirees and seniors – are moving more as we move away from the pandemic. This helps to increase sales of travel insurance. However, the average age of travel insurance buyers is still younger than in the past.
The winter snarls & cries
In December, news broke with videos and photos showing mountains of unclaimed luggage and piles of travelers. Although this became one of the best campaigns for travel insurance, it did not result in a flood of claims, according to Moncrief. In the first week of January 2023, the Squaremouth claimants did not see a significant increase in the reports reported.
“Honestly, this is not much different from what we saw in the summer, in terms of short flights, lost luggage and many delays,” he said. “There is no increase in the percentage of claims paid for flight delays during the whole summer season compared to the whole year.”
He explained that this is because the availability of insurance depends on the airline explaining the reason for the delay or cancellation.
“Airlines often blame something other than the staff, because they only want to reimburse their customers if they cause the problem, the ‘cost’. ‘ is usually a criminal,” said Moncrief. “However, if the delay or cancellation ends up canceling an entire trip, cancellation and interruption benefits will be used, and they are from and a more specific list of reasons related to airlines, usually limited to disruption, mechanical problems and weather.”