Travel insurers must adapt to younger customers

Young travellers are more likely to purchase cover at the last minute. More than one third (35%) of those under 35 buy their travel insurance on the day of departure and up to 40% travel without any insurance at all.

This is according to research conducted by UK specialist travel insurer, tifgroup, which analysed some 2.2 million policies it had sold between January 2017 and October 2019.

Managing director of Tifgroup, Richard Smith, said younger people were hard to reach and insurers needed 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.

“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.”

Head of underwriting audit at tifgroup, Will Thew, commented: “Often, we find that young people simply forget to buy their insurance until the day they travel.

“Our research shows young people in the 26 – 35-year-old age group are particularly prone to accidents and tend to be more vulnerable to sickness,” he added.

Half of all British holidaymakers buy their insurance a week or just before they travel. Older people tend to buy their travel insurance well in advance, with more than one-third of over 65s buying their policy at least six months before they travel.

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