Travel insurers have been urged to find new ways of engaging with the millennials as research shows they still struggle with the concept of travel cover.
UK specialist travel insurer, tifgroup has issued the results of new research which found more than one-third of young British travellers still buy their travel insurance the day they go on holiday.
This is despite the recent collapse of travel companies, and high-profile media coverage of young people facing huge medical bills after accidents and illness while abroad. The uncertainty surrounding foreign travel has also increased with Brexit still unresolved.
Richard Smith, managing director of tifgroup, says younger people are hard to reach and insurers need to look seriously at new ways to reach them.
“I think the whole industry is waking up to the fact that the traditional products and sales channels just don’t cut through to the younger generation,” he added. “Two key elements of this are trust and understanding.
“That’s why we’re looking at simplifying the products and the way we deliver them. It’s about making the products easier to understand and more suited to the type of trips they take. We know the type of activities they want to take part in abroad so they should be automatically included in their policies.
“This will help them trust us and give them a better understanding of what they’re buying. Shaking up the distribution to pay-as-you-go and subscription models is also likely to resonate with this age group as it is something they’re already used to.
“Too many young people are caught up in horrendous situations either because they don’t understand the cover they are buying or because they travel without insurance at all.”
The analysis of more than two million policies by tifgroup highlighted major differences between age groups.
- Half of all travellers buy their insurance a week or just before they travel;
- Older people, unsurprisingly, tend to buy their travel insurance well in advance, with more than one-third of over 65’s buying their policy at least six months before they travel;
- Millennials, on the other hand, are more likely to buy travel insurance at the last minute or forget to buy it all. 35% of those under-35 buy their travel insurance on the day; and
- Research suggests that up to 40% of all young people travel without any insurance at all for their trips.