We studied solutions that would be able to meet the growing demand for adequate insurance cover that would allow the traveller to fully enjoy the travel experience.
As the world reopens:
the tourism industry gets back on track
As the world reopens, the tourism industry gets back on track.
A more mindful tourism perhaps. Travel insurance policies, mostly considered a mandatory thorn in the side of travellers, have become a "must-have", on a par with essentials you would never forget to pack.
We are witnessing a significant rise in insurance premium volumes compared to 2019. We aren't necessarily travelling more, on the contrary, in many countries restrictions are yet to be lifted. However, there has been a shift in the perception of travel insurance policies. We are experiencing unprecedented conversion rates. From the sale of an offering (before the pandemic travel policies were often forgotten about), we are heading towards the sale of demand, driven by increasing requests from our distributors and end customers.
There are clear signs of the recovery of tourism in Italy for 2022: nearly 343 million stays and just over 92 million arrivals, up respectively 35% and 43% compared to the previous year. However, we are yet to catch up with 2019 levels. This is what has emerged from forecasts by the institute Demoskopika, which estimates tourist flows based on the tourist tax recorded by the information system on public body operations (SIOPE) and recent forecasts by Istat for 2021.
The Ministry of Foreign Affairs provides extensive support for anyone who decides to travel, and has also created an online questionnaire for accessing authorisations when departing from and returning to Italy.
Find out whether the borders of destination countries are open to travellers from Italy, as well as information on any procedures or restrictions, by visiting the website Viaggiare Sicuri. Here you will also find information on travelling safely in terms of health, in the section Salute in viaggio: a focus page with all updates on medical emergencies in the world.
Insurance cover in the COVID-19 age
As previously mentioned, the pandemic has significantly increased demand for travel insurance cover. The most evident trend, in addition to higher insurance rates, is a shift towards high-end multirisk products. In the pre-Covid age, market demand was essentially limited to cheaper products, even at the cost of severely limited guarantees and low maximum cover. Today we are witnessing the exact opposite. Demand has swayed towards the most complete product that provides maximum protection for the traveller, before and during their travels.
We remain steadfast in our aim to support recovery by being there for our partners, for an enhanced synergy.
New habits and routines have emerged and are here to stay, set to become a part of our lives and behaviours in one way or another. Smart working is just one example... Covid has been a strong catalyst of progress and in many professional fields there will be no going back. Similarly, tourism must respond to new requirements and needs emerging in response to this day and age. .
Safety will remain an absolute priority
Despite a desire for unrestricted travel, travel will continue to be associated with a lack of safety, especially as far as hard-hit destinations are concerned, which may actually be perceived as dangerous. Let us not forget that many risks are perceived as much greater than they are in reality. We remain steadfast in our aim to support recovery by being there for our partners, for an enhanced synergy.
Forecasting a return to pre-pandemic levels is not easy at the moment. Some research points to 2023/2024 as the years in which things will go back to normal.
The effects of an eagerly awaited recovery are beginning to show, although consumer interest in insurance products remains directly proportionate to the distance travelled from home. Insurance brokers generate much higher volumes in the case of medium/long distance trips compared to domestic travel. This is due to the incidence of premiums for long distance travel, as well a tendency to disregard insurance products when travelling not too far from the city of residence.
The pandemic has caused a significant rise in demand for insurance cover, particularly in response to two fundamental aspects. On the one hand, medical cover to protect against any medical and care expenses, and on the other hand, increasing attention to policies that cover cancellation penalties applied by carriers/ facilities/ tour operators in the event of trip cancellation.
The AXA Partners Italia solution
We have worked to structure an offering that takes into account new risks linked to travel. What really inspired us was the idea of providing concrete tools for tackling situations of necessity linked but not limited to the new pandemic. Full operation of our guarantees, even in case of Covid 19 is without a doubt the most important aspect.
One of the best-known guarantees provided by AXA Partners Italia is Cancellation All Risks, should the policy holder need to cancel a trip for whatever certifiable reason unknown on the booking date. Healthcare cover, including in the event of contracting a pandemic disease, comes with the option of adding Cover Stay to cover extra costs incurred in the event of mandatory isolation upon entry to a destination country, and Back Home, which guarantees the customer's return home in the event of poor safety conditions in their travel destination.
Guido Dell'OMO
Business Leader Retail, AXA Partners Italia
Travel insurance policies, mostly considered a mandatory thorn in the side of travellers, have become a must-have, on a par with essentials you would never forget to pack. From the sale of an offering that was all too often forgotten about, to the sale of demand; we are receiving an increasing number of requests from our distributors and end customers.
