How Digital Platforms Are Transforming Global Travel Insurance
Digital transformation has been evident in every sector in India, and the insurance sector is no exception. A significant development can be observed in the way travel insurance is being offered, whether it is in terms of easy access, customisation or overall improved customer service.
Sakshi was planning her trip to Dubai. While she was booking her tickets and accommodation online, she came across the option “Secure Your Trip with Insurance”. With just one click, she gained access to an international travel insurance plan that allowed for customisation to meet her personal needs. With the purchase, Sakshi’s trip to Dubai was an even better and safer experience.
This is just one example of how digital platforms have transformed global travel insurance. Travel insurance has become user-friendly and accessible in many ways, largely due to digital platforms. Let’s learn how.
Transforming Global Travel Insurance through Digital Platforms
Instant policy issuance has prompted many travellers to purchase a plan in today’s time, unlike the past, when purchasing travel insurance was a cumbersome process. Let’s take a look at the ways international travel insurance has seen a transformation through digital platforms:
Easy Access to Policies
The traditional way of purchasing a travel insurance plan typically required a physical visit to the branch and a tedious documentation process. With insurance companies introducing their digital platforms, travellers can easily get access to different types of policies, compare different plans and pick the one that best meets their requirements. Additionally, these platforms offer a self-verification process that makes purchasing travel insurance even easier.
Personalised Travel Insurance Policies
When it comes to purchasing travel insurance, one size doesn’t fit all. Factors like destination, duration of the trip, number of people travelling, etc, play a major role in deciding what kind of coverage a policy seeker requires. This is where digital platforms pave the way for personalisation. Travellers can now select a plan, opt for riders to customise the coverage, and easily choose between individual or family policies.
For Instance, A solo traveller can rely on limited coverage, whereas a family travelling overseas might need travel insurance with medical coverage or a higher sum insured amount. All of this is now possible with just a few clicks.
Enhanced Customer Support and Assistance
The sole goal of purchasing travel insurance is to create a safety net that the insured can fall back on in times of need. With insurance companies investing heavily in creating a robust digital platform, every insured now has access to enhanced customer support and assistance, regardless of their location. These digital platforms have introduced artificial intelligence to resolve queries and address grievances instantly.
Efficiency at Settling Claims
Purchasing travel insurance is primarily about securing a reliable unit that steps in during times of need. With the advent of digital platforms, insurance companies have significantly improved their claim settlement ratio. Insured individuals can easily raise a claim from anywhere in the world and be assured of assistance 24/7.
Improved Data Privacy and Security
Another aspect in which digital platforms have transformed the global travel insurance sector is by enhancing data privacy and security. Insurance companies now rely heavily on artificial intelligence tools to detect unusual patterns and flag potential fraud or misrepresentation. Additionally, many platforms are now taking the initiative in Blockchain that promotes data privacy and security and also allows insurance companies to design plans that cater to the needs of travellers from metro cities to rural areas better.
Rise of Insurance Providers
While talking about digital transformation, one cannot overlook its impact on changing the dynamics in both what is being sold and who is selling it. Over the years, the global travel insurance sector has witnessed a surge in micro-entrepreneurs providing easy access to insurance plans.
For instance, Point-of-Sale Persons (PoSPs) are insurance agents duly authorised by IRDAI to offer insurance policies across different categories. These agents not only provide easy access to travel insurance policies but are also emerging as trustworthy figures, especially in local networks.
Convenience for the Insurance Providers
Digital transformation has also worked positively for insurance providers. From collecting data to the rise in the influx of policy seekers, insurance companies have used technology for positive transformations.
Here’s how insurance providers have benefited:
○ Many insurance companies are using AI to collect timely premiums that previously required human intervention.
○ Stand-alone insurance providers are utilising digital platforms to adopt customer-first approaches, thereby building better credibility and reliability.
○ Insurance companies have invested significantly in analytics and blockchain to identify potential customers and offer a personalised service.
Wrapping Up
Through digital platforms, travel insurance has become more efficient, faster and reliable in many ways. Since the rise of global tourism and digital nomads, the demand for global travel insurance has also increased significantly and digital platforms are the centre of ensuring faster and smarter options for policymakers. Additionally, with the rapid adaptation to digitalised insurance methods, insurance companies have penetrated the market deeply. It is safe to say that digital transformation is a win-win situation for both customers and insurance providers.
If you are planning an international trip soon, be sure to secure your trip with travel insurance to avoid the stress of baggage and document loss, flight delays and cancellations, and medical emergencies in a foreign land. Your trip security is now just one click away.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
Disclaimer: This article is published in association with HDFC Ergo and not created by TNM Editorial.