Whilst the rest of the UK are preparing for their summer holiday, travel insurers are faced with a pressing list of priorities in what is becoming an increasingly complicated sector that is facing constant change and new risks.
Since the pandemic, the travel insurance industry has had to deal with a rebalance in the number of people travelling, talent shortages and the rising impact of climate-related events, to name just a few of the challenges. Fortunately, there are some key things insurers can do to prepare for another season of peak travel insurance claims and to future-proof their business against the larger emerging risks.
Educate Customers Now to Save Later
One of the core challenges for insurers is clarity of communication, and yet it is also one of the most important factors in achieving higher customer satisfaction. Clear communication throughout the purchasing process is equally as important as it is in the handling of a claim. Insurers can save a lot of time, expense and frustration in the long run by ensuring that transparent policy information is available, including all the details in a cohesive and easily understandable manner. As an industry, we must ensure customers are well informed and understand what level of coverage they have in place along with any restrictions they might face.
Investment in innovative technology can also assist with this vital task. From user-friendly websites to mobile apps and AI chatbots that enable quick correspondence, the right tools are key to freeing up customer support teams and enabling them to focus on more complex policy enquiries and personalised solutions.
Ensuring customers have a variety of different channels to easily access information and support when needed will deliver both calculable and intangible returns. The Accident & Health claims industry has seen a steady increase in customer dissatisfaction when claims are refused. Usually, customers appear surprised when certain scenarios are not protected by their policy, asserting that the restrictions were not made clear during their purchase journey. Knowledge and understanding are the first step to mitigating the risks associated with inadequate coverage; evaluate and re-consider all communication channels with customers in order to save later.
Upscale and Upskill Your Resources
The first step in preparing for a busy period should be to ensure that you have adequate resources to handle the volume of claims. An effective way to overcome the challenge of managing staff levels for seasonal impacts is adopting flexible resource models with the ability to outsource and scale your business at short notice.
It’s also important to have a burst resource team on hand if a major event occurs. Less than two years ago, the UK’s air traffic control systems were hit by a major technical fault causing chaos at airports that lasted for days. Last year, a glitch in a software update at a major cybersecurity firm wreaked havoc with systems globally, including those of major airports around the world, once again proving the vulnerability of major systems to technical outages. Malicious cybersecurity attacks have also emerged as very real threats that can lead to significant interruption for businesses, including aviation which is a high-risk industry due to its heavy reliance on technology and connectivity. It was only recently that following a fire at Heathrow airport, GB’s Accident & Health team and our frontline call centre ensured that during the surge event, customer calls were answered promptly, and support was provided from the get-go.
This leads to another important consideration for insurers: simply having an army of staff is not enough to effectively deal with a surge in claims, they also must be well-trained and prepared to handle difficult situations with empathy and the necessary expertise to put customers at ease.
Engaging a Claims Management partner is a practical way to overcome all these challenges. Gallagher Bassett’s collaborative approach bolsters clients with experienced claims professionals to solve the pain points they might face. The Accident & Health experts deliver the desired skills without the investment of time and effort needed to train new staff, as well as provide access to cutting-edge claims management technology.
Ensure You Are Adapting to Emerging Risks
In recent years, the level of risk involved in travel has increased for connected businesses and potential claimants alike. In 2023, after a Singapore airlines flight hit severe turbulence, the potential for similar disastrous incidents to become more frequent hit the headlines, with suggestions that higher atmospheric temperatures as a result of global warming were key contributors to this suddenly very present in-flight risk. The increased risk of such events poses serious possible consequences for travelers and insurers, particularly Accident & Health related claims.
This extends to other climate-related issues. For instance, the increased number of named storms over the 2024 /25 UK storm season, the earthquake in South-East Asia, the wildfires in Los Angeles and the Mediterranean should all present another warning for insurers as they can lead to a number of simultaneous travel incidents from delays and cancellations to accidents.
There has been a substantial increase in the number of flight delays and cancellations because of events linked to climate change. These multifaceted challenges arising from unpredictable weather highlight a pressing need for insurers to re-examine travel insurance policies and extend offerings of tailored coverage solutions to help customers manage the increasing risks.
Contact Gallagher Bassett’s team of experts to find out how we can help you successfully navigate the upcoming travel season by providing tailor-made solutions to the challenges of surge claim periods and the larger issues facing the travel insurance industry.
