Off-grid travel: a new frontier for insurance demand

This year, the desire for outdoor, active holidays is bigger than it’s ever been, with 33% of people surveyed by saying they want to travel somewhere where they can switch-off entirely in 2023. 

As we move away from the impacts of the pandemic, pushing ourselves out of our comfort zones has become the new normal. Holidaymakers are keen to experience time out away from the noise of modern life. And with greater appetite amongst travellers for adventurous off-grid travel, travel insurers are having to navigate this new path too. 

The need for insurance is clearer than ever

    1. The need for travel insurance is clearer thanks to the impact of the pandemic: it is no longer an afterthought in travellers’ minds. In fact, Forbes has also highlighted the increase in demand for travel insurance since the pandemic. 

 So what challenge does off-grid travel pose? Off-grid travel may challenge what is meant by comprehensive coverage, so travel insurers must look at what they can offer travellers looking to protect themselves during their next adventure.    

Embedded insurance: upfront and personal

    1. Advancements in embedded insurance have allowed for a more sophisticated offering to customers. Individual needs can now be accommodated for and protected through smarter analysis of information during the user journey. 

And what’s the result? In the event of an emergency, holidaymakers can rest easy that they’re protected.

Parametric insurance: expecting the unexpected

  1. One innovation which is perfectly suited to the rise in outdoor, off-grid travel is parametric insurance. This coverage, using real-time pricing, immediately compensates travellers when an event – whether that’s a weather event, a natural disaster, flight cancellation or delay – occurs.

This insurance is ideal for extreme sports and outdoor travellers as it means no customer has to initiate a compensation claim as the policy is automatically triggered when the event occurs. This ends the complex claims processes which discourages would-be purchasers from booking insurance.

US outdoor travel specialist BookOutdoors have already implemented this technology onto their websites, giving customers confidence that they can cancel their booking and receive a full refund if an eligible weather event is forecast.

The road ahead

It’s clear that the insurance industry must continue to evolve to meet the market’s needs. So that’s why travel insurers must ensure the current protections on offer accommodate the rise of off-grid travel. Fortunately, through embedded and parametric insurance, travel companies can offer holidaymakers highly personalised protections within their buying journey, appealing to off-grid travellers through a natural, hassle-free booking experience. 

[Link to the full article]

About the author

Meitav Harpaz is the CEO and co-founder of Palo Alto headquartered insurtech startup Pattern, reinventing personalized insurance for the travel industry. Before founding Pattern, Meitav was the founder and CEO of multiple startups in the financial sector, including Eccella Corporation (sold to NGDATA), which provided data engineering solutions and data strategy planning to large corporations in Financial Services. In this article, Meitav takes a look at the growing sector of off-grid travel and how insurance brands can create flexible cover that works.

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