Travel Insurance: The Essential Companion for Today’s Travellers

Remember when travel insurance was an afterthought, a checkmark at the bottom of a booking page you might glance at before clicking ‘pay’? As we close in on the peak holiday season, it is crucial to address this once-neglected aspect of travel. In today's travel landscape, insurance is no longer a luxury, but a non-negotiable necessity – a shield against unforeseen events. In this article, we look at the latest travel trends, shedding light on what travellers should prioritise and look out for in their travel insurance coverage before they embark on their adventures.

Holiday plans: Go big, Chase Dreams

Travel escapes now revolve around events like concerts, yoga retreats, surfing certifications, or experiencing the Sakura festival! Whether it's seeing a favourite band or artist perform live abroad, or visiting a dream destination, these major trips are becoming increasingly popular.

In fact, a 2024 Global Travel Trends Report by American Express ^[1] showed that 65% of respondents are more interested in taking a major trip in 2024 than in previous years and 72% would rather save money for a major trip than spend it on going out with friends. Based on our data, people are also generally booking longer trips (about 20% longer) but booking closer to departure dates.

This may be a delayed reaction to the inability to travel during the pandemic years. Regardless, more and more travellers are going big with their holidays.

New adventures, new risks

Today's travellers are more likely to be adventurous, seeking unique experiences in off-the-beaten-path destinations which, while exciting, introduces unknown new risks that can have monetary impact than adrenaline rush of risk. Remote locations can often lack the infrastructure for quick assistance in emergencies, and thus, navigating unfamiliar booking platforms can lead to unexpected gaps in coverage and impact the experience.

The rise of remote work and digital nomadism adds another layer of complexity. Standard corporate travel policies often fall short when lines between work and leisure start to blur, leaving gaps in coverage that could compound matters should unexpected issues arise.

This shift towards experiential travel underscores the importance of insurance coverage tailored to adventurous pursuits and niche activities. In collaboration with Klook in Singapore, Zurich offers precisely this kind of protection, providing adventurous activity coverage and more convenient telemedicine resources.

Rise in popularity of ‘cancel for any reason policies’

People are also increasingly keeping their travel plans flexible and leaving room for spontaneity, giving greater appeal to last-minute bookings, one-way tickets and other options that open the door to a sense of discovery.

This could potentially explain the reason behind the growth in demand we see for ‘cancel for any reason’ (CFAR) policies, as travellers prioritise flexible cancellation benefits to mitigate against increased travel risks.

Given the uncertain and volatile global landscape today, the ability to cancel plans and receive reimbursement, regardless of the reason, offers travellers a sense of security and assurance in an aspect of their lives that is meant to help them relax and unwind, driving the uptake of CFAR options in travel insurance policies.

Collaborative partnerships enhancing travel insurance

The proliferation of digital ecosystems has also paved the way for businesses to work more closely with and integrate their products and services into partner platforms, and insurers are forging strategic partnerships with airlines, banks, and other industry stakeholders to elevate the travel experience for their customers.

From seamless booking processes to integrated insurance solutions, these collaborations aim to streamline and enhance every aspect of the traveller's journey, emphasising convenience and peace of mind. Zurich’s partnerships with Japan Airlines, Peach Aviation, Monzo and Klook highlight the benefits of such alliances as it creates an opportunity to leverage our respective expertise and resources to improve and simplify the overall travel experience for everyone.

Tailored Value-Adding Solutions for Today's Travellers

In an ever-evolving travel landscape, comprehensive and customized insurance coverage is becoming more of an expectation for customers. Zurich, with our strategic partnerships fully powered by Zurich Edge, can offer tailored, value-adding solutions for travellers. One such example is the recently launched flight delay product, FlyEasy. FlyEasy offers travellers real-time, complimentary lounge access* in airports across the world, whenever their flight is delayed by more than two hours, with no claims filing or application processing required. Carefully designed to provide truly hassle-free coverage – while meeting the evolving demands of today’s travellers and enhancing customer experience – the FlyEasy benefit leverages a technology-driven approach to give ultimate convenience to customers, so they can focus on what matters to them – enjoying the adventure and travels that await them!

Zurich Edge solutions are designed to fit right into your digital setup, using agile, full-stack technology. This means you can seamlessly integrate them into your existing system, giving your customers access to valuable protection solutions while enjoying a user-friendly experience.

In this dynamic travel environment, having a reliable partner like Zurich can make all the difference in engaging your customers and ensuring they can embark on their travels with peace of mind and financial security.

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[1] https://www.americanexpress.com/en-us/travel/discover/get-inspired/global-travel-trends

*The lounges are available through our partner’s (Blink Parametric) association with DragonPass network. You may find the list of all lounges here.