Search Travel Market Report

cruise planners
ALG Sponsored
ALG Sponsored
mainlogo
www.travelmarketreport.com
  • News
  • Tours & Packages
  • Cruise
  • Hotels & Resorts
  • Destinations
  • Retail Strategies
  • Niche & Luxury
  • Well-Being Travel
  • Training & Events
  • Who We Are
    • Anne Marie Moebes
    • Brian Israel
    • Dan McCarthy
    • Denise Caiazzo
    • Marilee Crocker
    • Paul M. Ruden
    • Dori Saltzman
ALG sponsored

Travel Insurance Set for Greater Customization and Flexibility

by Richard D’Ambrosio / February 18, 2019
Travel Insurance Set for Greater Customization and Flexibility

With years of state litigation and negotiation behind them, travel insurance companies and underwriters are looking to customize – and compete more. Photo: Shutterstock


The travel insurance industry is experiencing a resurgence of competitive, customized offerings, as it shakes off the ambiguity resulting from years-long negotiations with state regulators, industry executives and observers said.

A few weeks ago, Berkshire Hathaway Travel Protection (BHTP) launched WaveCare, a travel insurance product specifically designed for cruisers, including higher medical and evacuation coverage limits.

Meanwhile, APRIL Travel Protection just launched an innovative annual plan, offering trip cancellation coverage available in increments of $1,000, up to $5,000, along with all of the other traditional comprehensive insurance offerings. Every time an insured makes a claim, that amount is deducted from the total coverage they purchased for the year. Policies start at around $50 for $1,000 in trip cancellation coverage.

As Travel Market Report reported last year, travel insurers recently negotiated a series of Regulatory Settlement Agreements (RSAs) with a group of states who are a part of the National Association of Insurance Commissioners (NAIC).

As a result, insurers and underwriters have greater clarity and alignment with state commissioners about the types of products and services that can be offered to consumers.

Additionally, a group of smaller underwriters have gone out of business as a result of their agreements, leaving the remaining competitors with a better assessment of risk tolerance for new policies and strategies, said Jason Schreier, CEO of APRIL Travel Protection.

“We’re definitely seeing more competition and innovation on the product development side,” said Stan Sandberg, co-founder of TravelInsurance.com, “and also in the way people are looking at distribution.”

“I have tried for years to get an underwriter to find a way to offer cancellation insurance on an annual basis,” said Schreier about the new annual APRIL Insurance plan.

“Most have taken three steps back every time I mentioned it,” he said. “They thought we were just asking for an unlimited number of complaints. But we finally found an underwriter willing to test this thing out, and see what kind of data we get back on it.”

“Ultimately, this is good for the industry,” said Schreier. “It suggests that if state licensing becomes more simplified, that will allow for more innovation by insurers and underwriters. It’s no surprise you are seeing new products like cruise-specific packages. I think we will see more of that.”

“While we felt that our business practices already met the spirit of the agreement signed with the lead states of the NAIC’s working group on travel insurance,” said Daniel Durazo, director of communications and marketing at Allianz Global Assistance USA, “we feel now that the agreement brings clarity to issues which had previously led to confusion and uncertainty in our industry.”

Travel insurance companies are still required to file their products for approval in 51 jurisdictions (50 states and the District of Columbia), a time- and labor-consuming practice, often taking a year or more from the time a product is designed until it is ready for consumer purchase.

Industry executives are hopeful that that will grow easier over the next few years, because on Dec. 19, 2018, NAIC voted to adopt a Travel Insurance Model Law that could establish greater standardization and consistency across the industry and the country.

The Model Law would provide “additional clarity,” Durazo said. The new law still needs to be adopted in each state, and Durazo encouraged travel agents to learn more about the law and their state’s legislative process to have their voice heard. 

“Shortly after the agreement was completed, we rolled out new, proactive travel insurance benefits which makes travel insurance even more useful to consumers and to our travel agent partners. While these innovations were already in the works, the completion of the agreement has allowed us to focus more resources on developing new products and services and making our claims process simpler and faster, for the benefit of all travelers,” Durazo said.

Ultimately, Sandberg believes that more innovation, as well as enhanced transparency in terms and conditions, could help increase insurance penetration with travelers younger than the average (45-year-olds).

Finally, Sandberg believes that all indications are green for travel in 2019. The stock market gyrations in December don’t seem to have dampened enthusiasm for traveling, he said, given current travel insurance purchase trends for trips scheduled in the coming year.

“Outside of the 24-hour news cycle, we see a number of factors contributing to a solid year, including positive consumer confidence and spending. In the travel industry, I think we have more reason to be optimistic.”

  0
  0
ALG Sponsored
Related Articles
More Consumers Interested in Travel Insurance than Pre-Pandemic
Four Things Insurance Companies Wish Advisors Knew
Travel Insurance Made This Skeptic a Believer
7 Important Tips for Successfully Selling Travel Insurance
Trip Protection and Travel Insurance: Are They the Same Thing?
Offering Travel Insurance to Groups Can Boost an Agent’s Income
Berkshire Hathaway Launches New Adventure Travel Insurance
How State Regulations Impact What Travel Insurance Can Be Purchased
How Can Travel Advisors Manage Client Medical Risks?
How One Family’s Medical Emergency Reinforces Need for Travel Insurance

MOST VIEWED

Brought To You By
  1. European Union Will Drop Its Mask Mandate for Travel Next Week
  2. 5 Client Types You Can Immediately Disqualify for a Virgin Voyages Cruise
  3. CDC Moves Four Destinations Into “High” Risk COVID-19 Level
  4. How Is the War in Ukraine Affecting the European River Cruise 2022 Season?
  5. Trivago Hit With Massive Fine from Australian Federal Court Because of “Misleading” Conduct
  6. American Express Confirms End to its Franchise Program

MOST EMAILED

Brought To You By
  1. European Union Will Drop Its Mask Mandate for Travel Next Week
  2. Japan Could Reopen to North Americans Next Month
  3. Japan Confirms Plan to Start Its Travel Reopening This Month
  4. 5 Client Types You Can Immediately Disqualify for a Virgin Voyages Cruise
  5. CDC Moves Four Destinations Into “High” Risk COVID-19 Level
  6. Advising Clients in a Maskless Travel World
ALG sponsored
TMR Subscription

Subscribe today to receive daily in-depth coverage, analysis of industry news, trends and issues that affect how you do business. Subscribe now for free.

Subscribe to TMR

TMR Recommendations
Daniel Zim
Zim Travel Law, PLLC. Demystifying Complexity with Down to Earth Advice. Attorney Advertising.
hbar
Rodney Gould
Rodney E. Gould concentrates in travel and tour-operator litigation and regularly counsels travel-related entities worldwide.
hbar
Tom Carpenter
Carpenter Law Office - Representing clients in the travel and tourism industries. Attorney Advertising.
hbar
Top Stories
MasterAdvisor 51: What's Trending In The Cruise Industry?
MasterAdvisor 51: What's Trending In The Cruise Industry?

What are clients asking about before they sail away?

Read...
ASTA’s Legislative Day Is Just Weeks Away
ASTA’s Legislative Day Is Just Weeks Away

Scholarships are still available for U.S. advisors interested in attending in D.C. next month. 

Read...
More Consumers Interested in Travel Insurance than Pre-Pandemic
More Consumers Interested in Travel Insurance than Pre-Pandemic

Online searches for travel insurance have increased by 70% since 2019.

Read...
ALG Vacations Shows Its Amped-Up Appreciation to Travel Advisors
ALG Vacations Shows Its Amped-Up Appreciation to Travel Advisors

For the entire month of May during Travel Advisor Appreciation Month, ALG Vacations® is showing its appreciation to its travel advisor partners with “amped-up gratitude.”

Read...
Headquarter Happenings: Avenue Two Travel's First-Ever Collective
Headquarter Happenings: Avenue Two Travel's First-Ever Collective

“We have long dreamed about hosting an event like this. It's so incredible to think the dream has come true on the heels of some of the most devastating times of our lifetimes." 

Read...
Who Is the Ideal Virgin Voyages Client?
Who Is the Ideal Virgin Voyages Client?

Some psychographics, demographics and group types that will help you narrow down which of your clients are most likely to love the Virgin experience. 

Read...
TMR Outlooks
Multi-Gen Outlook
Distribution Outlook (1)
New to Cruise Outlook
Expedition 2020
Wellness Outlook
River Cruise Outlook 2019
View All
Advertiser's Voice
https://img.youtube.com/vi/87ira8MA_b8/0.jpg
MasterAdvisor: What's Trending in the Cruise Industry?
About Travel Market Report Mission Editorial Staff Advisory Board Advertise
TMR Resources Webinars Calendar of Events
Subscribe to TMR
Select Language
Do You Have an Idea Email
editor@travelmarketreport.com
Give Us a Call
1-(516) 730-3097
Drop Us a Note
Travel Market Report
71 Audrey Ave, Oyster Bay, NY 11771
News|Leisure Travel|Land Vacations|Cruise|Canada Retail Strategies|Well-Being|Luxury|Training
© 2005 - 2022 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | 243 South Street, Oyster Bay, NY, 11771 USA | Telephone (516) 730-3097| Terms and Conditions
Cookie Policy Privacy Policy