Endsleigh will target students with parametric travel insurance, which will ease concerns around having to pay large costs up front, and GlobalData’s consumer survey shows that this is a demographic where insurers can increase their sales.
GlobalData’s 2021 UK Insurance Consumer Survey shows that only 26.3% of respondents who were students bought travel insurance in the past year, which compares to 31% of the overall total. Therefore, targeting students with plans that will reduce any costs they could incur appears to be an effective strategy.
Endsleigh is offering parametric travel insurance, which means that if a flight is cancelled it will automatically know and refund the cost of the flight to customers so they can book a new one. This prevents students from having to fork out an extra few hundred pounds while they wait for their payouts when on a tight budget. It is aimed at students traveling around the world, so gives refunds to any leg of the trip.
While it may be expected that the penetration rate for travel insurance among students will be lower, there are arguments to suggest it shouldn’t be. Many look to use long periods of holidays to go on long trips around the world, and these are the types of trips where insurance is even more important. While budgets may be tight, if a policy can prioritize value and convenience as with this one, the penetration rate should increase.
Endsleigh has also partnered with US insurer Pattern to offer parametric travel insurance in the States specifically for skiing, a big hobby for students. This will see customers receive an instant payout if conditions are bad, through weather tracking, without the need for them to make a claim, which highlights different areas where parametric insurance can be used.
Our survey also shows that COVID-19 has altered this trend, as it found that travel penetration rates for students in 2019 (the last full non-pandemic year) were higher (63.6%) than for all consumers (59.5%). This illustrates that there is a significant market for insurers among this demographic, and policies that prioritize convenience, like this one, could win them back.