What is travel insurance?
Given the risks that can come with travel – and the chance that unforeseen circumstances could force a consumer to cancel a trip before it even begins – travel insurance can provide peace of mind and financial protection. This webpage will explain what travel insurance is, the most common types of travel insurance, and how the world of travel insurance is changing.
An essential component of the travel industry, travel insurance is a line of insurance that can cover a variety of types of expenses related to travel. It is typically purchased before a trip and covers the duration of the trip.
Depending on the policy, travel insurance may cover trip cancellation, loss or damage of luggage, and medical emergencies while traveling.
What are some of the most common types of travel insurance?
- Trip cancellation or interruption insurance. This type of travel insurance covers the costs of canceling or interrupting a trip due to unforeseen circumstances like illness or inclement weather.
- Medical emergency insurance. This type of travel insurance covers the cost of medical treatment and emergency medical transportation.
- Baggage and personal effects coverage. This type of travel insurance covers lost, stolen, or damaged luggage and personal items.
- Evacuation insurance. This type of travel insurance covers the cost of emergency evacuation in case of natural disasters or political unrest.
How is the world of travel insurance changing?
The COVID-19 pandemic has had a significant impact on the travel industry, and travel insurance has not been an exception. Many travelers are now more aware of the risks of traveling, and as a result, travel insurance has seen an increase in popularity. In response to the pandemic, some travel insurance policies now include coverage for trip cancellations due to COVID-19-related issues like illness or travel restrictions.
At the same time, the demand for digital solutions in the insurance industry is growing. Customers are looking for online options to purchase and manage their travel insurance policies, and insurance companies are embracing digital technologies to meet this demand.
How does Five Sigma help travel insurance companies manage claims efficiently and reliably?
Compared to other types of insured customers, travelers have some unique needs. Perhaps most importantly, travel insurance claimants are often on the move – sometimes internationally. As a result, convenience is critical for them, especially when it comes to filing claims and receiving payments.
Meeting these needs, Five Sigma’s data-driven, cloud-based claims management solution (CMS) can help you manage claims more efficiently, reduce costs, and provide better service to your customers.
Specifically, our software uses machine learning to streamline claims management, reducing the time and costs associated with this process. It also empowers claims adjusters to work quickly and focus on the customer, helping travel insurance providers to deliver a friendly claims experience to each customer. And our technology integrates seamlessly with existing systems, making it easy to implement and use.
With Five Sigma, insurance professionals can quickly and accurately process claims, get assistance in identifying fraudulent claims, and provide better customer service to travelers.Back to Glossary