Sep 18, 2018

Top 5 Reasons Travelers Buy Travel Insurance

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Travelers today are more aware of possible disruptions in travel, and they’re increasingly finding value in the financial protection and added peace of mind that trip insurance can provide. In one of our recent surveys, 82 percent of our customers who purchased travel insurance with their airline tickets said they are likely to very likely to purchase travel insurance again—a 12 percent increase in just two years.1

What’s so compelling about travel protection? One recent survey of thousands of our insured customers, representing a portion of the 35 million customers we serve annually, indicates what’s most important to them now.

Benefits of Travel Protection

Most travelers choose to buy travel insurance primarily for added peace of mind or in case they might have to cancel their trip. Nearly all our customers who purchased travel insurance with their airline tickets say that refunds for a cancelled trip are a very to extremely important benefit. They cited the most probable reasons they might have to cancel as health reasons, family and work, as well as certain other unforeseen situations.

Additional benefits ranked by customers as “very to extremely important” include: refunds for trip interruption, or ending their trip early (80%), reimbursement for delayed, lost, or damaged baggage (71%), payments for medical emergencies (62%), and reimbursement for food or hotel if their flight is delayed (56%).2

Likely as a result of recent hurricanes and natural disasters, our customer survey also showed one out of 10 travelers consider “weather issues impacting travel plans” as their primary concern when booking a trip. That’s doubled since a year ago.

The primary benefits of travel protection are highly relevant to domestic and international travel. Consistent across both, insured travelers listed their three primary concerns as “getting sick and having to cancel the trip,” a flight getting delayed or cancelled, and “having to cancel the trip to care for a sick friend or family member.”3

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Customer Loyalty and Added Value

Trip protection is gaining in popularity as an essential part of travel planning. The likelihood of purchasing travel insurance again was higher among our customers identified as repeat buyers, at 90 percent. Two out of 10 customers said their primary motive to buy our products is that they “always purchase travel insurance,” which more than doubled since 2017.And a recent Forbes article named Allianz Travel Insurance the “best travel insurance for frequent travelers.”5 

We believe this loyalty effect is a result of continually adding more value and benefits throughout the customer’s journey, from the TravelSmart™ app to faster digital payments and our new SmartBenefitsSM rolling out in 2018. It speaks to our exceptional customer service and an enduring spirit of innovation that strives to constantly evolve our products to meet consumers’ individual needs.

This progress wouldn’t be possible without our valued partners, who also see the benefits of travel insurance and are focused on delivering the best possible customer experience to build loyalty and brand advocates.

All of these efforts translate to our 96 percent customer satisfaction rating, which is remarkable in the insurance business.

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Terms, conditions and exclusions apply.
Insurance benefits underwritten by BCS Insurance Company (OH, Administrative Office: Oakbrook Terrace, IL), rated “A-” (Excellent) by A.M. Best Co., under BCS Form No. 52.201 series or 52.401 series, or Jefferson Insurance Company (NY, Administrative Office: Richmond, VA), rated “A+” (Superior) by A.M. Best Co., under Jefferson Form No. 101-C series or 101-P series, depending on your state of residence. Plan(s) only available to U.S. residents and may not be available in all jurisdictions. Allianz Global Assistance and Allianz Travel Insurance are brands of AGA Service Company. AGA Service Company is the licensed producer and administrator of these plans and an affiliate of Jefferson Insurance Company. The insured shall not receive any special benefit or advantage due to the affiliation between AGA Service Company and Jefferson Insurance Company. Non-Insurance benefits/products are provided and serviced by AGA Service Company. Consumer may be responsible for charges incurred from outside vendors for assistance or concierge services. Contact AGA Service Company at 800-284-8300 or 9950 Mayland Drive, Richmond, VA 23233 or customerservice@allianzassistance.com.

Citations:

1. Allianz proprietary research, July 2018
2. Allianz proprietary research, July 2018
3. Allianz proprietary research, July 2018
4. Allianz proprietary research, July 2018
5. Best Travel Insurance For Your Travel Personality and Needs,” Forbes, August 2018

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