Will insurance products become
a primary revenue source for consumer travel brands?
Skyscanner is the latest
company to offer a package of insurance products intended to restore consumer
confidence and peace of mind.
In partnership with Cover
Genius and its XCover insurance distribution platform, Skyscanner customers can
now purchase medical, trip cancellation and airline insolvency coverage, including
protection against travel
disruption and sickness caused by COVID-19.
In October, Hopper introduced
four financial protection products, including guaranteed refundable bookings, date change capabilities and flight delay protection. During a recent
interview on PhocusWire’s “New Reality With...” series, Hopper CEO Fred Lalonde said that more than half of the company’s revenue now comes from its financial
services, fueling revenue growth of 100% in 2020 despite a decline
in bookings.
And Airlines such as Emirates and
Lufthansa have also added insurance products in recent weeks.
Skyscanner’s insurance solutions
are currently available for travelers in the United Kingdom and Ireland and
will be rolling out to 50 countries.
The company says its recent
survey of more than 3,500 consumers in the United Kingdom found that 40% say travel insurance
will give them more confidence to fly or book their next trip.
“In today’s uncertain and changing travel landscape,
the most important thing we can do is to give travelers the confidence they
need to plan and book a flight, knowing that they are covered whatever happens,”
says Tiago Godinho, commercial director at Skyscanner.
“We’re pleased to be partnering with market leader
Cover Genius whose technology and end-to-end insurance capability mean that we
can reassure travelers globally and help them get back to traveling again.”
Cover Genius’ XCover system provides protection that is
personalized and optimized based on real-time data related to the traveler’s
itinerary and destination. Options include 24/7 emergency medical assistance,
repatriation and expenses cover and coverage of prepaid costs if a trip cannot
be completed due to things such as failed temperature checks at a destination.
XCover also provides digital claims management
and instant payment of claims in more than 90 currencies.