Pro Advice For Buying Travel Insurance In 2023

Doris Hoffmann has her sights set on a river cruise in 2023. Like many travelers, she plans to take out reliable travel insurance.

But which one?

For a $3,000 cruise, the premium is $200-$250, which she thinks is reasonable. She narrowed her options down to Allianz and Trawick policies.

Hoffman, a nurse in Winter Springs, Fla., said, “I wanted to get some information about the company and its claim payment history before making a decision.

Luckily for Hoffman, both companies have excellent customer reviews and pay claims quickly.

In many ways, Hoffman is the quintessential travel insurance customer. Although she is aware of the potential dangers, she is also careful in choosing the travel insurance company she buys. In addition, increasing uncertainty in 2023, a possible economic recession, escalating geopolitical issues and the continuation of the pandemic are increasing traveler anxiety.

Aon Affinity Travel Practice President Beth Godlin said: “Add to that the growing financial investment in travel and the interest in protecting health, safety and security.”

What’s different for travel insurance in 2023?

In Part 1 of this series, we asked if you will need insurance next year (short answer: you probably will). But what will be the trends shaping travel insurance in 2023? What should travel insurance customers know? We asked the experts.

Christina Tunnah, General Manager of Marketing and Brands at World Nomads said: “Prices are rising, reflecting both increased demand and supply constraints, as well as inflationary pressures in the economy at large. It means that we need to ensure range.”

A recent survey of US travelers showed that their intentions to travel over the next 12 months are on the rise. Last June, 67% of him said he was ready to travel. But by September it had risen to 74%.

“As we enter 2023, the travel industry continues to recover,” said Megan Prescott, product manager at AXA Partners US. Travelers are experiencing increased frequency of flight cancellations and delays, increasing demand. This trend is likely to continue until the airline industry has fully recovered, which could be 2024 at the latest for her. “

So what does that mean for travel insurance in 2023?

More people need travel insurance

Laura Heidt, insurance desk manager at Brownell Travel, said: “So the investment is higher and they are more concerned with protecting the investment.” Insurance is mandatory for trips over $3,000. The average domestic round-trip ticket price reached $397 in the latest available quarter, the highest level in eight years.

Rising premiums and increased uncertainty have resulted in more people buying travel insurance. According to Joe Cronin, president of International Citizens Insurance, only about 35% of American travelers had purchased travel insurance before his COVID and only had major trips afterward. “Roughly 80% of Americans now protect their travel and health with travel insurance.”

Melissa Downham, luxury travel advisor and founder of Roaming Travel Co., says travel insurance was on the back burner. Now it’s one of the first things she discusses with clients.

“Since 2020, my travel insurance inquiries have dropped from about 10% of my clients to probably 90%,” she says.

Easier to understand travel insurance contracts in 2023

One of the promising developments this year is the ease of understanding what travel insurance covers. This is the assessment of ALTOUR’s Chief Risk and Security Officer, John Rose. “Top insurers such as AIG and Chubb have provided excellent explanations of coverage,” he says. “Trip Advisor and customers can understand the policy language more effectively.”

So if you’re shopping for travel insurance in 2023, expect a little less policy confusion. But it will still be a dense read.

The rise of insurtech — and its parametric benefits

New insurtech companies are also changing the industry. Offering more customization options and offering unique 24/7 emergency travel and medical assistance services, companies like Battleface are making travel insurance faster and more user-friendly.

Faye Travel Insurance CEO Elad Schaffer said: Innovations include real-time refunds to your phone and a digital wallet that lets you buy food and other essentials in case of long flight delays.

These instant refunds are called parametric rewards.

Seven Corners product strategist Angela Borden says these benefits will be significant next year. “In 2023, we anticipate an increase in parametric rewards, which will provide travelers with a real-time billing solution by checking for trigger events as soon as they occur and paying a specified reward amount,” she said. I will,” she explains.

The travel insurance bundle is ‘medium’

Unprecedented flight delays this summer have increased the popularity of bundled travel insurance products, according to Berkshire Hathaway Travel Protection (BHTP). Since the beginning of summer, sales of products like ExactCare Extra have skyrocketed. BHTP vice president Carol Mueller said, “The projection that ‘Flightmare’ will continue into 2023 will make the benefits of flight’s inconveniences even more apparent.

But travelers should take the time to review all the perks before purchasing a bundled insurance product, she says. “Speak directly with your travel agent or travel insurance company regarding covered cancellation reasons and coverage during your trip,” she says.

Travel insurance may not be enough in 2023

One of the biggest changes experts predict is that more and more travelers will not rely solely on travel insurance.

Stan Sandberg, co-founder of the travel insurance site, explains: TravelInsurance.com.

Sandberg said travelers also purchase medical evacuation memberships from Medjet Assist or Covac Global. He says this is a cost-effective way to get a professional air ambulance service to return home if you are hospitalized while traveling. Sandberg is part of the trend. He enrolled his family of four on the MedjetHorizon annual plan. This plan also provides travel security services and crisis response.

Global Rescue CEO Dan Richards said:

These are not the only popular add-ons. Travelers also buy international legal aid through companies like Regaloo. Alternatively, you can purchase a security membership through a company such as FocusPoint International’s her CAP Travel Medical and Security Assistance Plan.

The rules will apply next year as well.

Even with all the changes, the basics still apply. (I outlined these in my free guide to buying travel insurance.)

And what are the basics? Please compare policies before purchasing. Please read the policy carefully. Choose the policy that fits your needs. “Also, if you have any questions, please consult a licensed travel insurance professional,” adds Shrivastava.

More changes await

Like the travel industry itself, travel insurance has its surprises. Whether it’s innovation by insurtech companies or new policy restrictions due to the pandemic, you never know what might happen.

Pallavi Sadekar, Head of Operations at VisitorGuard.com, said:

For example, a popular travel insurance plan for travelers just updated their eligibility and coverage renewal terms for 2023. From now on, if the stay in the country of destination exceeds his 365 days, the traveler will no longer be eligible for new coverage.

Chris Carnicelli, CEO of Generali Global Assistance, said: “Especially in recent years.”

Experts predict that most surprises in 2023 will be positive.