Cara Morton, group CEO of online insurance provider Cover-More, knew that the COVID-19 pandemic would turn travel insurance on its head and that tourists would expect much more from insurance providers once travel was possible again. 

“Cover-More spent the two long years of the pandemic focused on digital transformation, a more relevant customer experience and product design that incorporated previously unavailable cover for pandemics,” she says.

“We also invested heavily in technology to support travel risk management services for both business and leisure travellers.
 In fact, the Cover-More travel safety app that we launched in Australia in 2022 and in New Zealand in November 2023 is the first of its kind, delivering corporate-level travel assistance services to Australian and New Zealand leisure travellers.” 

New enthusiasm for travel insurance

An unprecedented surge in travel in the years since the relaxation of COVID restrictions has been accompanied by an increase in demand for travel insurance. 
Allied Market Research reports that the value of the global travel insurance market was more than US$14 billion in 2021, and a growth of nearly 25 per cent will see it reach US$124.8 billion by 2031. 

Etiqa Insurance Singapore chief marketing officer Shirley Tan says Singapore’s outbound travel is on an uptrend, with residents making 5.15 million departures by air and sea in 2022, compared with 1.5 million departures in 2020. 

“Singaporeans are embarking on more trips for several reasons, including ‘revenge travel’,” Tan says.

“The uptake of travel insurance has increased as many Singaporeans experienced sudden cancellations and disruptions during the pandemic.

“We’re also seeing more travel insurance purchased for short trips, which is a change in consumer behaviour. Consumers previously perceived nearby destinations as a lower risk so were less likely to purchase travel insurance when travelling to them.”

Consumers learn the hard way 

Demand has been driven by greater consumer awareness of risks such as war, terrorism, lockdown and travel agents going out of business, resulting in Singaporeans proactively safeguarding themselves against unexpected events.  

“We see the same trends for corporate travel insurance, which is expecting returning demand as organisations in Asia ramp up business travel this year,” says Tan.

Morton says Cover-More is seeing an increased demand for cover for more extreme adventure activities such as black-water kayaking and ice climbing. 

“I think that is a symptom of being deprived of travel and adventure during the pandemic, so Aussies are looking to accelerate their experiences before anything else happens,” she says.

Cover-More’s travel safety app has been downloaded more than 50,000 times since its Australian launch in 2022, signalling that customers want more information about where they are travelling, what is happening at a destination and how to access assistance if they hit trouble. 

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