25% of travellers in the UK alone went uninsured
Travel represents over €7 trillion ($8 trillion) total contribution to the global economy, and this is increasing. 2018 statistics show us that Generation X spends up to €4,842 ($5,434) on travel and millennials are growing their spend to €6,061 ($6,802) per year.
However, despite travel expenditures growing substantially, 25% of travelers in the UK alone went uninsured in 2017, up from 22% in 2016. Travel as a business sector is an area ripe for new entrepreneurial thinking and customer-focused innovation. As tourism, booking agencies and the needs of the traveler are all significantly evolving; there is an opportunity to move from narrowly developed products to providing valueadded services peppered with new experiences and targeted engagements that fulfill genuinely unique customer needs.
From the moment a travel experience is booked, and the holiday-maker departs, it requires Insurers to re-think and explore the question of “which parts of this overall traveler ecosystem do we want to play within?” To complicate matters even further, the variety of needs coming from distinct customer segments add more complexity to the definition of market requirements. It is now fundamental to view the customer as a series of micro-segments with different specifications, each of which can swiftly impact the design of future product and service propositions.
It is essential to understand that five generations of consumers, who continuously enjoy a variety of travel arrangements, are today exhibiting different wants, aspirations, and expectations across many life stages and critical life events.
To simplify the process of innovation exploration into manageable areas, we’ve segmented the end-to-end travel process into three essential steps within the customer travel journey.
Each of these stages represents an area where the experience links directly to specific insurance services that can be adapted and refined.