CFAR insurance boosts event, travel uptake: Cover Genius

Australian consumers who are offered Cancel for Any Reason (CFAR) insurance when purchasing live event tickets or travel are more likely to make the purchase, Cover Genius says.

Despite this, six out of 10 survey respondents said they were not offered refund protection for their most recent live event ticket, accommodation or airfare, a poll of 605 Australian consumers found.

“Consumers in Australia are seeking a seamless experience when buying live event tickets or booking travel, which includes the process of requesting refunds for when things don’t go according to plan,” Cover Genius said.

It says consumers are more likely to purchase the underlying event ticket, airfare or accommodation when offered CFAR protection, compared to those who were offered a more limited refund protection option or no protection at all.

“Consumers are resoundingly opting for comprehensive, convenient protection options like CFAR,” CEO Angus McDonald said. “Insurtech can help digital companies meet this demand with seamless integration via an API for ticketing platforms, venues, resellers, airlines, OTAs, hotels and more.”

CFAR Refund Protection enables customers to request a refund without having to sort through paperwork or provide documentation, Cover Genius says, and this convenience leads to higher customer satisfaction.

Its distribution platform XCover offers refund protection for any event, with CFAR and other travel insurance options.

Cover Genius commissioned the survey that analysed 10,300 global consumers from eight countries, including Australia, to gauge interest in adding CFAR Refund Protection.

Respondents said they’d be willing to pay 123% more for CFAR protection than non-CFAR protection,or 29% extra ticket value vs 13% extra ticket value, with most nominating convenience as the primary reason.

“Those who have purchased CFAR protection have been considerably more satisfied with their experience,” Mr McDonald said.