New Allianz Travel Insurance Process Pays Without Claims

Travel insurance has always been mired in paperwork. But, with its new SmartBenefits, Allianz Global Assistance is moving toward a proactive system where customers don’t have to file anything at all. And they receive payments in just a few minutes.

In July, Allianz began monitoring all of its customers’ flights, and automatically filing a claim on their behalf when there is a qualifying flight delay of 3-6 hours, depending on the policy. Customers can receive $100 per person per travel delay within minutes on a debit card, or in 24-48 hours through a direct deposit if they enter their payment details on their cell phones. If they do nothing at all, Allianz will mail them a check automatically.

That is just one of the customer-focused product enhancements Allianz is rolling out, with the goal of simplifying the process of collecting insurance payments. Using the TravelSmart app, customers can file for fixed-amount payments of $100 per person per day for travel and baggage delays, with no receipts required, and receive payment in about seven days.

Allianz also has expanded some of the benefits it offers and added new ones. New Hurricane Warning and Mandatory Evacuation benefits can cover customers if a natural disaster makes their destination unsafe; emergency medical coverage makes Allianz the primary rather than the secondary insurer, so customers get quicker access to care; and higher limits can cover the cancellation of bigger-ticket vacations that involve pre-existing medical conditions.

Finally, Allianz has simplified the language in its insurance policies so customers and their travel advisors better understand them; and set up a system that automatically reminds customers a few days before their trip of the benefits to which they are entitled.

 “Proactive claims are one of the best things we are doing to shake up the market,” USA Sales Vice President Richard Aquino told Travel Market Report at the ASTA conference in Washington this week. “It’s an industry first; we are automatically sending out a text saying we see your flight is delayed, would you like a check or a direct deposit? You can get paid electronically immediately, or if you don’t reply, you get a check at home for $100.”

Travelers who want to file a claim for a higher amount still can do so and receive an additional payment if the claim is approved.

In the end, Aquino said, Allianz is looking at travel “as a journey from start to finish, and trying to make it easier for the traveler and the advisor. We always aim to provide cutting-edge technology, unmatched service and a simple process.”

Staying close to the travel advisor channel
Travel agents, too, can benefit from the proactive approach; Allianz will email their customers just before the trip to remind them that they have travel insurance.

“We think travel insurance is critical to any trip, but we know advisors are busy doing many things, so our technology will do that for you,” Aquino said.

The Allianz commission protection policy pays up to 20 percent on many product lines, and its professional program offers annual policies for travel advisors and their families that can cover trip cancellation, medical emergencies and lost baggage.

Allianz is seeing growth of about 25 percent through its channel partnerships, Aquino said. “Mother Nature and human nature can affect travel, and insurance has become part of the booking process as more people are traveling and trips are farther away and more exotic. The consumer is much more aware of what travel insurance is, and travel advisors have become much more knowledgeable and sophisticated about product lines in the travel insurance space, so they can help clients choose. But, we encourage them to let us get into the granular details of the policy with customers; we welcome the customer to call us so we can address their questions directly.”