Last updated - Jan 12, 2022 11:51 PM
The global travel insurance market is growing. Between 2014 and 2019, the market grew at a compound annual growth rate (CFAR) of roughly 6%, according to Research and Markets.1 CFAR may not mean anything to you, but it shows investors that the global industry is right on track, and as 5-12% is a good rate of growth.2 This should pique the interest of any travel industry pro, and the interest should stem from reasons beyond the desire to increase your bottom line, although that never hurts to consider.
Travel insurance is becoming a necessary commodity for travelers. This was made evident by the onset of the COVID-19 pandemic and continues to be true as travel rebounds in 2022. Selling travel insurance shouldn't be taken lightly, especially if it's uncharted territory for yourself or your company. We'll break down what you need to consider.
9 Tips for Selling Travel Insurance
1. Don't base your recommendations on cost alone
If you're new to selling trip insurance, know this: making your recommendations on a cost-only basis is a recipe for disaster. Don't assume that your clients undervalue travel protection or travel medical insurance, especially when traveling internationally. If you sell them a product that doesn't deliver because you were worried about the price tag, then you'll end up with an angry and disenfranchised client.
Travel insurance has a wide variety of coverage and services. Underselling your client can leave them without essential benefits that keep them and their investment safe. Make sure your recommendations fit their trip and personal needs as a priority. Then consider the cost.
2. Include cancel for any reason travel insurance in every trip package you book
If the coronavirus pandemic taught us anything, it's that world events can affect travel in unimaginable ways. All too often, travelers assume that by getting trip cancellation insurance, they're covering their trip from any possible roadblock and will undoubtedly get their money back. And we wish it was that simple.
There are several things travel insurance doesn't cover when it comes to canceling a trip, like the fear of travel, border closures, and travel advisories. Cancel for any reason travel insurance is the only way to guarantee that not all will be lost, but many travelers aren't even aware it exists. Be sure to let your client know that trip cancellation insurance has its caveats and that they can add flexible coverage to gain total control over their travel plans if they choose. It's more expensive, but it's significantly better coverage.
Note: Cancel for any reason has plan eligibility requirements. Be sure to check their state-specific coverage for details before offering these plans, or check with WayPoint.
3. Travel advisors: encourage your customers to sign a waiver
There was a point in time when selling travel insurance was a tough job. Let's be honest, it often takes a global catastrophe for travelers to realize its importance, and those are few and far between. Travel insurance wasn't an everyday part of life like auto or homeowners insurance was. But that's changed. If people aren't actively booking travel, they're certainly thinking about it. When the time comes for planning a trip, travelers are more likely than ever to cover their trip costs and buy medical coverage for their travels. You can drive the importance of trip insurance home by having your clients sign a travel insurance waiver if they deny travel insurance coverage upfront. This serves two purposes:
- It shows them how serious you are about travel insurance.â€¨
- It protects your agency from any liability that pops up if a traveler is uninsured.
4. Don't be the insurance expert
You're an expert in what you do, be it selling travel or creating travel content. While being knowledgeable about travel insurance is helpful, taking up your mental energy to learn insurance-related things isn't recommended-or realistic. Gaining the amount of knowledge a travel insurance expert has takes years of industry experience, and you'll need to get licensed in any state you sell coverage if posturing yoruself as an expert. This can be both expensive and time-consuming.
Additionally, products are ever-changing and can be tough to keep up with. So, save yourself the trouble and don't try and become an insurance expert. Partner with a company that brings that knowledge and experience to the table! That lets you focus on what you do best, creating amazing experiences and content that inspire travel. Here at WayPoint, we leverage advanced AI to read the fine print for your customers and help find the best travel insurance for their next trip. By giving your clients and following white glove access, we keep you from bearing the insurance business's stress while accessing all its unique and essential benefits.
5. Know that exclusions always apply
Not a single insurance policy on this planet comes without exclusions. Exclusions are things that aren't covered under any circumstance in an insurance plan, and knowing this will help you avoid making unrealistic guarantees and statement to your clients and audience.
6. Remember, you're either offering or loving
The best way for you to approach selling travel insurance to your clients is to remember that you're either offering or loving. Here's what we mean: you're not the expert licensed to sell travel insurance. Recommending a company is different than pushing a specific plan, and the latter puts you at risk for being held liable should a claim be denied. You want to make sure you protect yourself and your business by working with a company you trust will take care of your clients. If there is a plan you have used in the past and really like, it's okay to say that, but you have to approach it correctly. Below are examples of ways to promote travel insurance without putting yourself at risk.
Instead of saying, "You should buy [product XYZ insurance];"
Try: "I love buying [XYZ insurance] for my trips because I receive good customer service and I find their products easy to understand."
7. Coverage is never retroactive
One thing that happens all too often is travelers buying a plan after an event in hopes of having it covered. Here's a perfect example: it's hurricane season and the travelers in question didn't buy insurance for their Caribbean getaway. To their surprise, a hurricane is named by NOAA and projected to hit their destination on their arrival date. These travelers scramble to get coverage for their washed-up trip. When they file their claim, it gets denied. That's because travel insurance is never retroactive.
You can't buy car insurance after you've been in a car accident. Travel insurance can't be bought to cover something that's already happened.
8. Fear of getting sick or hurt is never covered
Travel insurance is like many other insurance types out there in that fear of [anything] is never covered. Let's look consider this as if it were car insurance. You wouldn't collect on your car insurance because you were afraid you'd get in an accident. You get it to cover yourself if you do get into an accident, and claims are paid after the fact.
When the pandemic hit, we saw a lot of travel cancellations. People were afraid to travel, and rightfully so. However, being fearful of getting Covid-19 wasn't a reason to collect on their insurance. Cancellation was only covered if they contracted Covid prior to travel, and were not able to travel on their previously scheduled dates.
There was one exception, however. Cancel for any reason plans(CFAR) reimburse travelers up to 75% of their prepaid, lost trip investment because they're afraid to travel or any other reason and get some of their lost money back.
9. Be a storyteller
As someone who either curates trips or travels often themselves, you've most likely witnessed an accident, natural disaster, or trip cancellation. Those stories can feel like distant possibilities to the infrequent flyer, but they are very real. Sharing stories related to travel mishaps can make a huge impact.
Stories open us up to new ideas and possibilities. Your experiences as a travel professional are radically different from those who seldom travel. Sharing the authentic details of what unfolds when things go wrong can prevent future catastrophe. Your clients can understand the pitfalls and perils that can happen during travel and protect themselves accordingly. Science tells us that brain patterns between storyteller and listener begin to mirror one another.3 The connection shared can be both emotional and physical, greatening the impact.
Travel professional Tammy Levent says, "First, bring it up to them when they are booking with you. Ask them if they want to buy an insurance policy. If your client says they don't want travel insurance, that's when you have to make a case for why they should seriously consider it anyway." 4
Selling travel insurance can make a huge impact on your clients or your followers. It can provide the tools they need to travel safely and responsibly, and it is easy for you to get started by following the steps outlined above.
If you're looking to add travel insurance to your repertoire, book a free demo with our team. We can show you how AI makes selling travel insurance easy.
- "Global Travel Insurance Market Report 2020-2015 with COVID-19 Impact Analysis." Research and Markets. 2020. http://www.globenewswire.com/news-release/2020/12/04/2139674/0/en/Global-Travel-Insurance-Market-Report-2020-2025-with-COVID-19-Impact-Analysis.html. Accessed 4 Apr. 2021.
- "Sales, 5 Year Compound Annual Growth Rate." Stockopedia. Nd. https://www.stockopedia.com/ratios/sales-5-year-compound-annual-growth-rate . Accessed 4 Apr. 2021.
- "The power of storytelling." The Health Foundation. 2016. Accessed 5 Apr. 2021 from https://www.health.org.uk/newsletter-feature/power-of-storytelling.
- Levent, T. "How and Why to Sell Travel Insurance."ÂÂÂÂÂÂÂhttps://tammylevent.com/how-and-why-to-sell-travel-insurance/. Nd. Accessed 4 Apr. 2021 from https://tammylevent.com/how-and-why-to-sell-travel-insurance/ â€¨
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