The latest UK travel insurance statistics reveal a huge rise in the number of travel insurance claims being processed. After governments across the world lifted their lockdown restrictions, people began to travel again. This resulted in a rise in the number of travel insurance policies taken out, which in turn led to a surge in claims and payouts.
Unfortunately, as insurers process growing numbers of claims, the end result will likely be rising travel premiums for customers.
In this post we’ll explore some ways brokers can respond to these rising travel premiums to ensure they can continue to deliver the best value to their customers.
How to Communicate Price Rises to Customers
If your customers’ premiums are going to rise, don’t let it come as a nasty surprise. Let them know as early as possible and tell them exactly what they can expect to happen. Explain the underlying causes of the rising premiums and share some of your expert broker insights to give them some idea of when they might expect the prices to stabilise.
It would also help if you could provide some options for any customers who want to address their rising premiums – such as to switch providers, or to change the terms of their policies.
At the very least, send a letter or an email. But if possible, take the personal approach – a direct phone call, to really demonstrate how much you value your customers.
How to Manage the Costs of Your Brokerage
You could take this opportunity to review your own operations. Are there any areas of your business that aren’t working as seamlessly or efficiently as others? Is there anywhere you can cut costs or reduce your overheads?
Make savings wherever you can, and you may be able to pass on some savings to your customers.
Understand Your Customers’ Needs
Different customers will need different levels of cover. Take the time to review your customers’ requirements. Some of them may be paying for cover that they may never need. And if travel insurance premiums are rising, then dropping some unnecessary cover could be an effective way for certain customers to save money.
How to Tailor Travel Insurance Policies
If you don’t currently work with insurers who can tailor their policies to suit their customers’ needs, then now would be a good time to switch providers.
Continue to offer your customers off-the-shelf travel insurance products, and they’ll have little choice but to pay whatever the market rate for cover happens to be. But if you can offer bespoke policies that take into account your customers’ exact requirements, then you will always be able to offer your customers true value. You can respond to changing market conditions and deliver outstanding customer service no matter what.
At Capacity Insights, all of our travel insurance products deliver exceptional, tailored coverage at a truly competitive price. We specialise in both business and leisure travel insurance. So no matter what your customers need, we can help you provide it.
Find out more about our flexible, simple, and affordable travel insurance schemes.