As peak travel season nears, three main topics are dominating Aussie consumers’ mindsets when it comes to insurance – increased demand, economic and geopolitical volatility and higher expectations.
At its recent Global Travel Summit in Paris, Allianz Partners found these key insights are defining the insurance sector in 2023 and reflect the uncertainty and opportunities facing the travel industry.
Travel demand remains strong this year with consumer interest in travel insurance well above pre-pandemic levels.
In Australia, the intent to purchase domestic and international travel insurance has more than doubled to 35 per cent and 65 per cent respectively post-COVID.
Similarly, travel insurance provider InsureandGo found that two in three (68 per cent) Aussies intend to purchase domestic travel insurance for their next Australian holiday.
This high demand is accompanied by even higher expectations as travellers navigate a highly complex economic and geopolitical environment.
In short, customers expect more timely handling of claims and greater responsiveness from their insurers.
At the same time, the end of cheap credit and major cost-of-living pressures may impact travel plans, including discretionary spending on holidays.
Travel insurance = peace of mind
Allianz Partners Australia Executive Head of Travel Damien Arthur said the company has seen consumer behaviour shift towards travel insurance with an increase in consideration and perceived value.
“Australians have a strong desire to travel with the international travel market returning in leaps and bounds despite the uncertain economic signals,” he said.
Allianz Partners Chief Marketing Officer of Travel Joe Mason said leisure travel demand has coincided with high inflation, climate change, labour shortages and geopolitical volatility, adding that the insurer handled more than 72 million cases in 2022, up almost 13 per cent on 2021.
Globally, Allianz Partners handled more than 11,000 medical evacuations and repatriations in 2022, managing medical emergencies in almost every country in the world.
“2023 is shaping up to be a very complex year and rapid advances in technology and AI are happening even as customers place more emphasis on one-on-one support during critical moments,” he said.
“Travellers want more peace of mind from their insurer. It’s our job to deliver assistance through traditional insurance products and enhanced services, making travellers feel safer and more secure.”
To find out more, visit alliance-partners.com.
