Allianz is partnering with an insurtech start-up in a bid to modernise its travel insurance offering and win consumers over once traveling is permitted again. It has partnered with Blink, which can offer quick and automatic payouts on its digital app.
GlobalData’s 2020 UK Insurance Consumer survey found that Allianz was not a major player in the UK travel market in 2020, with a share of just 2.1%. Blink was formed in 2016 and featured in GlobalData’s July 2017 FinTrack, a report series that profiled and ranked insurtechs on five key metrics. Blink was considered to be original, long-lasting, operationally impactful, and an improvement to user experience.
Targeting claims and immediate payouts is a good strategy for Allianz to adopt. Blink’s platform automatically rebooks consumers whose flights have been cancelled onto new ones, while it also offers lounge access for delays. Consumers are likely to be wary of potential disruption when they are allowed to travel again.
Therefore, anything that insurers can do to alleviate that will give them a competitive advantage. Flights have been cancelled, often at short notice, throughout 2020 and so far in 2021 as COVID-19 continues to cause severe disruption.
Vaccine passports being discussed could offer light at the end of the tunnel to the travel industry. Vaccine passports will allow those who have been vaccinated to travel to certain countries. This means the travel insurance industry should start to pick up again and is good news for consumers beyond COVID-19. So this partnership with an insurtech should be successful and help Allianz increase its presence in the market.