Travel Insurance Represents Massive Opportunities for Insurtech as The World Reopens. This sort of travel coverage would be viewed as an optional product that people purchase when they may be traveling somewhere with a dubious safety record. But following the recent global health crisis, adequate travel insurance is now viewed as an absolute essential before travelling.
Travellers often lament the protection afforded to them by their insurance providers, not to mention the troublesome and lengthy process of claims.
Capitalizing on this, many insurtech companies in the region are focusing on providing innovative, digital-first insurance products and services that cater to the specific needs and preferences of consumers in the region.
Singapore has one of Asia’s biggest concentrations of insurtech start-ups, with over 80 companies in the island state. The market is expected to grow annually by nine percent (CAGR 2021 to 2026). The Singapore government is also supportive of the insurtech industry, with initiatives such as the Sandbox Express program.
45 percent from Thailand and 57.7 percent from Indonesia purchased via travel providers or agents. Singapore travelers would also switch to travel providers, with 39.6 percent exploring this option, whereas Thailand (45 percent) and Indonesia (60.6 percent) would still go through travel providers.
Some people may be hesitant to try new and unfamiliar technology and prefer to stick with tried-and-tested methods for purchasing insurance. Finally, certain insurance products or services may only be available through traditional insurance providers, which could also influence people’s decisions about where to buy insurance.
There is a role for insurtech to deliver insurance to thousands of travelers through access to more personalized and tailored insurance products and services based on their specific needs and preferences, including coverage for pandemic-related risks and disruptions.