General Insurance Article - How post Brexit business travel will change insurance sector

The travel insurance sector needs to evolve to address the changes in the business travel sector brought on by Brexit and the pandemic, argues Emanuele Scansani, Director of Partnerships and Strategic Relations at Riskline

 With Brexit rendering the EHIC invalid, British travel insurers will no doubt see travel insurance uptake surge as UK travellers, who previously relied on the EHIC, begin to purchase travel insurance for their European business trips. Arguably, many travellers were already considering separate travel insurance arrangements due to the increased awareness of health risks brought about by the pandemic.

 However, with or without the EHIC system, travel insurance remains essential for overseas trips as emergency medical costs, including emergency repatriation back to the UK, can run into tens of thousands of pounds. The UK government has also warned those with pre-existing medical conditions that it is ‘particularly important’ that they purchase travel insurance with the right cover as, while the EHIC scheme covered pre-existing conditions, many travel insurance policies do not.

 Clear communication to cut through confusion
 Insurers have a challenge ahead with a slew of new measures to navigate. Far from clarifying processes, the Brexit deal has brought with it many uncertainties which look set to affect business travellers when travelling to and from the UK. The current inconsistency in terms of rules and regulations and paperwork required, means that travellers will demand greater clarity and communications at all stages of the travel process including when considering what type of insurance to purchase.

 The purchasing journey will need to start well in advance of travel in order to allow time to navigate changing requirements. Brexit has led to uncertainty and guidelines will vary from one EU country to another. In short, the planning time for business travel now needs to be extended.

 Technology to target the new traveller demographic
 The purchasing journey will also need to keep up with changing expectations. A younger, more tech-savvy workforce has emerged over the past decade and are demanding more bang for their working buck. As corporate travel volumes slowly return to pre-pandemic levels over the course of the next year, demand will grow for a modern business travel experience, driven by the next generation.

 Millennials make up a larger portion of workers than ever before and are rapidly rising to management levels within their organisations.

 It's well documented that this group of travellers have little patience or use for archaic, dated workplace technologies.

 The insurance sector has traditionally been slower to adopt to technology, but this will have to change. The industry will need to evolve and adapt to technology, such as apps, to make their products appeal to a younger generation. We may see some partnerships in place that create a more user-friendly journey. For example, the rise of all-in-one travel booking and insurance offerings – insurance sellers could partner with TMCs to offer the full package (travel + insurance) in one place.

Back to Index

Similar News to this Story

Health and wellbeing benefits boosts SME productivity
Research from the Association of British Insurers (ABI) shows that offering health and wellbeing benefits to staff can play a valuable role in boostin
Pay by mile pricing to be standard within four years
Research from By Bits has found that the motor insurance industry is heading towards usage-based pricing models, with 91% of insurers regarding it as
Car insurance prices hit seven year low as mileages plummet
Car insurance prices have fallen sharply to reach their lowest point since 2014, according to new research by MoneySuperMarket, with experts putting t

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS


Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.