Survey uncovers major travel insurance gaps for Asia’s young adventurers
Survey uncovers major travel insurance gaps for Asia’s young adventurers | Insurance Business Asia
Travel
Survey uncovers major travel insurance gaps for Asia’s young adventurers
Most common concerns revealed
Travel
By
Roxanne Libatique
A new survey by Klook Protect, the insurance subsidiary of the travel platform Klook, has identified a significant shortfall in travel insurance coverage among younger travellers across Asia.
The study, titled “Travel Troubles Beyond Lost Luggage 2024,” examined how Millennials and Gen Zs are navigating the evolving landscape of travel risks, revealing a mismatch between their needs and available insurance products.
“This is why there’s a gap in the market for different types of travel insurance that reflects their travel habits alongside elevating the quality of their holiday,” he said.
Travel risks in 2024
The report noted that travel in 2024 brings additional risks, influenced by factors such as climate change, economic uncertainty, and health concerns.
These risks have led to increased instances of disrupted travel plans, heightened by issues like severe turbulence, rising crime rates in popular tourist spots, and health threats from climate-sensitive diseases.
Outdated travel insurance products in Asia
The survey revealed that 21% of respondents are seeking alternatives to traditional travel insurance, which they feel is outdated and fails to meet their specific needs.
A further 34.1% expressed a desire for a more engaging insurance purchasing process, while 12.7% and 8.1% are looking for more innovative and adaptable insurance providers.
Common frustrations include the:
complexity of filing claims (25%)
difficulties in understanding what is covered (22%)
lengthy processes (20%)
The survey highlighted that travellers from Malaysia (36%), Singapore (34%), and Hong Kong (21%) find the claims process particularly challenging.
Meanwhile, 40% of respondents from the Philippines are more focused on cost, with price being the key factor in their decision-making.
Increased risk for younger travellers in Asia
The study found that 48% of travellers under 35 are drawn to high-risk, adventure-oriented travel, often involving solo or unplanned trips. Activities like extreme sports and visits to remote destinations present higher risks of injury or accidents.
Additionally, 46% of those surveyed take leisure trips at least quarterly, often opting for budget accommodations or transport options that may not meet high safety standards.
Heavy reliance on technology for travel logistics, including navigation and bookings, poses additional risks, particularly in emergencies or in areas with poor internet access. The survey also pointed to rising concerns over issues like ride-share scams and misleading accommodation listings.
Procrastination in insurance purchases in Asia
Despite the typically meticulous planning associated with travel in Asian households, many travellers delay purchasing insurance until just before their trips.
The survey noted that a significant portion of travellers from Singapore (30%), Hong Kong (36%), Malaysia (37%), and the Philippines (36%) purchase coverage only days before departure. This procrastination is often due to the complexity of insurance products, with 32% of respondents expressing a preference for simpler, more user-friendly options.
Calls for improving Asian travel insurance sector
Soong emphasised the need for the travel insurance industry to evolve in response to these findings, enabling younger travellers to focus on enjoying their trips without undue concern for potential setbacks.
“There is a need for new travel insurance standards, as travellers are dragging their feet to purchase travel insurance, feeling overwhelmed by options and still not finding what they need,” he said.
The service, which leverages Zurich Edge technology, is available to Singapore residents who purchase a qualifying Klook Protect policy and register their flight details in advance.
Roopa Malhotra, Zurich’s APAC head of customer and digital, stated that FlyEasy is part of the company’s strategy to provide innovative, customer-focused solutions.
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