Insights from USTIA 2023

The world has emerged from the COVID pandemic, and the travel insurance industry is seeing significant growth with premiums exceeding pre-pandemic levels. More people are traveling for leisure, work or combining both, and there is a greater understanding of the need for travel insurance to protect against unexpected events. At the recent U.S. Travel Insurance Association (USTIA) conference in Las Vegas, several trends emerged that are shaping the industry’s future.

Technology is taking the lead.

One of the conference’s key themes was the growing importance of technology in the travel insurance industry. Keynote speakers highlighted how technology is being used to enhance the customer experience and streamline the claims process. Trailblazer companies talked about their use of artificial intelligence (AI) and machine learning algorithms to process inconvenience-related claims faster and more accurately.  The industry realizes that customer experience is the key to generating repeat customers.

Parametric coming into its own

One of the most exciting trends is the rise of parametric insurance, particularly for flight delays and cancellations.  Transformational travel insurance carriers are implementing real-time payments using parametric claims payment methods, allowing quick and accurate claims processing. This is a welcome development, as some speakers at the conference highlighted the challenges of lengthy claims processes for even the smallest claims.

Embedded – success stories gaining traction 

Another trend that is gaining traction is embedded insurance. This approach involves integrating insurance products into other services, such as travel booking platforms, to provide customized and relevant offers to customers in real-time.

Rather than just a talking point, embedded insurance is a rapidly growing trend in the travel industry. Travel businesses are integrating insurance products into the booking piece and throughout the customer journey, and companies are offering personalized and relevant insurance options to travelers in real-time. This trend continues to grow as more companies recognize the potential of embedded travel insurance.

As a leading travel insurance provider, Pattern is excited to continue building its product and partnership portfolio to offer best-in-class travel products and services.