Travel insurance : expandable or expendable business?

• Main Authors: Tan, Hui Leng, Wong, Lin Beh, Chiu, Hsu-Kwang
• Other Authors: Brian Lawrence
• Format: Final Year Project
• Language: English
• Published: 2015
• Subjects: DRNTU::Business::Finance::Insurance
• Online Access: http://hdl.handle.net/10356/63626
• Institution: Nanyang Technological University

The scope of this report covers the marketing aspects of travel insurance. The purpose of our study is prompted by the positive change in the public's attitude towards buying insurance and the growing trend of Singaporeans spending their holidays abroad. Research and interviews were carried out to find out the differences of the various travel insurance polices and their implications to the consumers, the intensity of the competition and the problems faced by the insurers, the prospect of the business and the other possible marketing strategies that could be used by the insurers to expand the business. A survey was conducted on a sample of Singaporeans who travel, to find out their awareness of travel insurance, their buying behaviour, their attitude towards travel insurance and risks. The survey shows that most of the travellers are aware of the existence of travel insurance but many are indifferent towards it. Peace of mind is the main reason for some travellers to buy the policy in addition to their existing life insurance policy or personal accident policy and they prefer to buy the policy from the travel agents for convenience. Although the features of various travel insurance policies are similar, their differences lie in the limits of indemnity, premium payable, duration, scope of coverage offered and travelling zones. Therefore, it is important that consumers find out what their policy covers and whether the protection is adequate. Besides the travel agents, promotions of travel insurance policies are also done through other intermediaries such as the brokers, insurance agents, banks and credit card companies. The insurers also perform a certain degree of direct marketing. High expenses and low profitability of the travel insurance business are the major concerns of the insurers. Some insurers are skeptical about the growth of the business in the future but there are some who are optimistic about it and have confidence in its profitability. Based on the feedback from the interviews, travel insurance business is believed to have the potentiality for further growth but it would probably be a gradual process. It is felt that the insurers should continue to focus their promotional efforts on the intermediaries and try to explore additional viable marketing channels in order to expand the business. To stay competitive, they should also review their insurance policies and premiums regularly.