Returning back to chilly Boston after spending a few days in Miami had us thinking– we can finally call ourselves ITIC veterans. After four conferences across Latin America, Europe and the U.S. in the last year and a half, focused on connecting the travel and health insurance industry, we had another chance to reconnect with colleagues and industry friends in true ITIC fashion: five-star networking, snazzy hotels, and a closing event that rivals none in the space.
So what’s hot in the travel health insurance space? We can give you one hint: it starts with embedded and ends with insurance.
Embedded Insurance is the future of travel insurance for North Americans
Travel health insurance is a specialized type of coverage designed to protect travelers from unexpected medical expenses, emergencies, and trip-related disruptions, such as accidents, illnesses, hospitalizations, or emergency evacuations, while traveling outside their home country, ensuring access to quality healthcare and financial security abroad.
The ubiquity and growing acceptance of embedded insurance products offer a real growth opportunity for the industry. For customers, it provides a seamless, convenient experience by showing up directly in the booking process of, for instance, booking airfare, eliminating extra steps. Personalized coverage ensures that insurance options align with individual travel details and preferences, while automatic data prefill and frictionless sign-up reduce manual input. With a one-click purchase, travelers can secure protection instantly without disrupting their booking flow.
However, a key challenge to that growth is that many North Americans are unfamiliar with travel health insurance and may not fully understand what they are purchasing, leading to potential trust issues and confusion when making claims. According to a survey conducted in 2023 by Business Insider, a full 38% of travelers purchased travel insurance. Of that number, only 11% said they always buy travel health insurance, whereas the other 29% bought it due to worries about flight disruptions or health.
What can insurers do to communicate the benefits of travel insurance and take advantage of what technology now enables?
We learned about how the ecosystem is approaching this – and there are a few key points that were shared by travel insurers at the event, including key insights from Axa and Mawdy, about how to ensure travel insurance is part of the booking experience every time.
Understand your buyer’s motivations: Who is (and isn’t) buying?
Are potential customers unaware of the product, or does it fail to capture their interest? Understanding buying behavior can help improve how insurers work with their clients to better target and address the concerns of the traveler and help them decide on which travel health insurance is best.
Clarify the terms of credit card coverage in the U.S. vs. Europe
Unlike much of Europe, where credit cards and banks often provide medical coverage, most U.S. credit cards only offer assistance rather than full medical benefits. While some high-end cards cover medical expenses like emergency medical treatment, this is not the norm—many U.S. credit cards only cover trip disruptions. This common misconception leads many travelers to assume they are fully covered when, in reality, they may need additional insurance for international travel. As such, it is important to be mindful that clients fully understand the benefits they are receiving and what additional benefits they should be seeking out for full coverage.
Understand their common concerns
No matter how well a policy is structured, payment concerns will always arise. There are several key areas of frustration including efficiency of claims processing, what the policy actually covers and how reimbursement is handled which are top concerns with travelers who do end up needing to use their policy abroad.
Improve the customer experience with AI & personalization
Insurers should implement targeted follow-up marketing for travelers who experience delays. AI-driven solutions can enhance support by offering, for instance:
- Quick access to baggage loss claims
- Directories of in-network medical providers
Additionally, personalized support helps ensure a seamless and stress-free experience for the buyer. Many buyers prefer live customer support and require multiple touchpoints to better understand their coverage. Since embedded insurance interfaces often present only the basics of a policy, customers may be unaware of important details, leading to surprises when they need to use their coverage abroad. Addressing these concerns through clearer communication and enhanced customer support could improve trust and satisfaction for all parties involved.
By addressing these factors, insurers can better serve travelers and build trust in an ever-growing market, while also ensuring that the customer not only feels secure in the decision they made, but is protected for anything that may arise on their trip.
Overheard on the show floor
Who to look out for: Medigo. Medigo is a Third-Party Administrator that helps health insurers streamline the patient healthcare journey through services like claims management, cost containment, and telemedicine. With a global provider network across five continents, the company secures preferential rates and ensures seamless care. Its award-winning, multilingual team and in-house medical experts deliver tailored solutions that simplify healthcare management.
Most heard key term: Educate. Educate, educate, educate. Educate the buyer, educate the insurer, educate the service providers and those looking to make a claim. The insurance industry is still lacking education across the board, which is the key to helping travelers have seamless vacations and experiences.
What gets the industry moving: The limbo. After a few days of networking and making connections and friendships, nothing ties a group of insurance experts together like the limbo at the closing party! A perfect way to wrap up our time in Miami.