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Travel Insurance is On the Rise. Do You Sell It?


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Travel insurance demand is booming. Are you benefiting?

 

One of the best ways to grow your insurance company is to expand into different areas. Selling one type of insurance can limit your growth potential. One insurance product that is growing in demand right now is travel insurance.

 

The travel insurance industry is seeing a boom as business travel increases significantly as well as overall tourism.

 

Tourism is growing, according to Market Research. Travel insurance was a $12 billion industry in 2017, yielding a return of 4.7 percent for investors and has grown significantly in recent years.

 

The United Nations World Tourism Organization (UNWTO) claims international tourism grew by 3.9 percent in 2016 over 2017, as about 1.2 billion tourists traveled the world. The number of tourists is projected to hit 1.8 billion by 2030. Those travelers should be protected while abroad, don’t you think?

 

What is travel insurance?

 

Travel insurance covers costs and loses for everything from medical emergencies that may happen when away from home to lost bags during travel. It also covers loses as a result of more serious events like terrorist attacks, kidnappings or hijackings.

 

Terrorism is on traveler’s minds more than ever. Kidnappings in tourist areas like Mexico have also grown. Protection while traveling is more relevant than ever before.

 

Market Research pints to a lack of awareness about travel insurance as a major factor hampering the growth of the product. As an insurance agent, educating customers about travel insurance and what it covers can help you bring in more clients to your overall business.

 

What are travel insurance limitations?

 

Before you add travel insurance to your product list, it’s important to know the limitations. Travel insurance has territory coverage. Some developing or third-world nations may not accept travel insurance. Newly developed countries may offer a limited version of the product.

 

 

Who buys travel insurance?

 

Corporate travel has increased which is increasing travel insurance demand. That makes sense if you think about it. A company or person traveling for business, is more likely to put travel insurance on the business credit card than a millennial taking a trip across the globe.

 

Business travelers accounted for 25 percent of the travel insurance market in 2017. The Global Business Travel Association (GBTA) reports that 79 percent of business travelers carried medical travel and 60 percent purchased luggage loss insurance in 2015.

 

Other demos taking more trips include:

 

  • Senior citizens
  • Education travelers
  • Family travelers
  • Backpackers

 

They make up large segments of travelers, but less of them purchase travel insurance. These are the audiences you should be targeting with your marketing and prospecting efforts.

 

Where do the buyers live?

 

Europeans make up the largest geographic segment of travel insurance buyers. They made up 40 percent of global revenue for the product in 2017. That number makes sense when you consider the volume of international European tourists. The UNWTO claims that there were 583 million tourists from Europe in 2015, which accounts for about half of all international tourism.

 

North America comes in second place, which is good news for U.S. based insurance agents. While there is currently a demand, it’s not maxed out yet.

 

Making up a fraction of travel insurance revenue are China, Japan, South America, Middle East and Africa. However, the China market is expected to grow in the coming years.

 

Summary

 

Diversifying your insurance product portfolio is a good idea in these challenging times. Lead generation is more competitive than other and offering an additional insurance product that is growing in popularity is one way to grow your insurance business.

 

Contact Parasol Leads today to learn more about our insurance lead generation offerings.

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