Companjon, a leading European tech business specializing in developing and underwriting embedded insurance, announced the key findings from its fourth extensive consumer report on insurance and the travel industry. The report uncovers evolving consumer behaviours and demands toward embedded insurance when booking travel experiences.
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Embedded Insurance: Driving The Travel Industry's Top And Bottom Lines, is the latest report and part of an ongoing annual series. Companjon commissioned global data and insights firm Dynata, to survey more than 5,000 participants across major European markets — France, the U.K., Germany, Italy and Spain - in Q3, 2022.
Travel-related embedded insurance products prove to be an ancillary revenue opportunity for online travel companies as consumers overall showed a strong appetite for cover that provides flexibility and are event-triggered. These top-performing products include Cancel For Any Reason (90%), Luggage Loss Insurance (85%) and Delay Insurance (84%).
Similar to last year's report, it shows that the majority of consumers, particularly 25-44 year olds would consider purchasing embedded insurance mostly due to automated claims processing, instantly fixed payouts and reliability of service. This comes as no surprise with millennials being recognized for their hyperconnectivity and digital expectations when it comes to purchasing goods and services.
The reliability of embedded insurance, that it's easy to understand what is covered, and a seamless claims experience were the most compelling characteristics for consumers to favour embedded insurance over traditional insurance.
Other insights relevant to the travel and activities industries:
• Embedded insurance influences switching behaviours in travel and mobility users as 64% are likely to switch providers if they were offered Cancel For Any Reason, 58% if offered Luggage Loss Insurance and 56% if offered Delay Insurance.
• Over 40% of consumers would choose embedded insurance if It gave them the flexibility to cancel the purchase and be reimbursed instantly.
• Consumers favour embedded insurance as an upgrade to their ticket or bundled within it.
"Customers see the relevance in digitized insurance products and are demanding to be offered them during the purchasing journey on their favourite booking platforms", said Companjon's CEO, Matthias Naumann.
"As seen by our own partners, insurance products that are embedded and digitized across the entire user journey allow them to gain new revenue. In a digital-first world, global platforms should rethink the role embedded insurance can play for better customer experiences, increased loyalty and greater revenue."
Access the full report on Compajnon's website
