In many forums, articles, conferences, debates, etc. There is talk both in our sector and outside it about the need and characteristics of travel insurance for people who make a leisure trip. But to a much lesser extent there is talk of the Travel insurance modality aimed at workers, not just managers, who travel for professional reasons.
First of all, I would like to stress the need to take out this type of insurance, not only because of the obvious moral responsibility of the employer to cover any health problem that the employee may have during a trip, but also because the duty of protection that the legislation confers on the company and that we can see materialized in various court rulings.
The coverage of the two modalities differs very little. The company version includes kidnapping-related coverage and with the expenses of replacing an employee who must be repatriated to the country of origin. Instead, in the limits of the guarantees, such as medical expenses and accident capital, we do find that they are quite a few higher in business travel insurance.
In reference to the temporary nature of the insurance, the leisure insurance is almost 100% temporary, unlike other countries, such as Germany, for example, where the annual policy is extended to cover various trips that can be made during the year. On the other hand, in companies, temporary insurance is also contracted for specific trips that can last several months, the annual policy is the majority since it allows the human resources departments not to be aware of communicating each trip to the insurance mediator. Annual policy that can be subscribed in a nominated or non-nominated way, the latter being the option chosen by companies that during the year have a high turnover in the number of people who travel and therefore are not obliged to report the aforementioned changes and therefore facilitate management of the policyholder and the mediator.
Las Insurers use various specific methods to calculate premiums for unnamed policiesbut of course the variables related to the number of trips and their estimated duration are fundamental.
The accident rate at the sectoral level is not known, but in our case it is correct, so it is possible maintain stability in technical premiums and offer remuneration to the mediator in accordance with the management of attracting and maintaining the business. Policy that in many cases the mediator is not fully aware that he can offer it to medium and large companies when he is offering the rest of his insurance portfolio.
How will business travel evolve in 2023 and consequently the volume of premiums?
The most important travel business association in the United States in a recent survey of its associates concludes that most estimate that by the end of 2023 we will be at levels similar to the pre-pandemic stage. Only 1 in 10 delay it until the end of 2025.
On the other hand, only 1 in 5 travel managers had started to implement plans to reduce travel due to inflation and therefore the increase in the cost of domestic and international travel.
Therefore, Everything seems to indicate that the good evolution that leisure insurance is experiencing will have a similar response in the short term for corporate travel insurance.
This implies that we have to continue adapting to the needs of companies and their employees, such as being very attentive to trips that combine professional activity and leisure (bleisure).
We are convinced that This type of travel insurance covers a clear market needis an important business for an insurer specializing in Travel insurance and requires the collaboration of a professional mediator who advises the companyin the same way that you do it in other products.
2023-04-25 05:14:51
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