Need to Know Research: Advisors Are Selling More Travel Insurance Than Before the Pandemic

Perhaps not surprisingly, the COVID-19 pandemic has led to a continued increase in travel insurance sales by advisors, according to new Need to Know research conducted by TravelAge West. A survey of more than 250 advisors found that nearly two-thirds (64%) are selling more insurance now than before the pandemic.

While most agents (69%) do not make travel insurance mandatory for every booking, the majority either sell it with all (25%) or most trips (52%). Most advisors (58%) require a written waiver from clients who turn down insurance.

“We have seen a huge uptick in customers purchasing insurance who never considered it before,” said Danny Genung, owner of Harr Travel in Redlands, Calif. “Also, many who had assumed they had good coverage with a credit card or other means finally realized the coverage is so much better with a comprehensive travel policy.”

In fact, travel insurance has become a major part of many advisors’ revenue. Most of the respondents (52%) say that it accounts for between 10% to 25% of their overall sales.

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Cancel for any reason (CFAR) insurance is the most popular with customers, with 27% of advisors saying CFAR makes up more than 90% of their overall insurance sales. 

Providing insurance also makes it easier for advisors to close more sales in general, according to 44% of survey respondents.

“I would say that our knowledge of insurance, ability to connect customers with the right supplier and help plan for their needs has definitely helped us close at a better rate,” Genung said.

In general, advisors feel travel insurance providers did a good job during the pandemic: 25% say they are very satisfied with the way companies handled claims and another 45% are somewhat satisfied. And nearly three-fourths (74%) continue to work with the same providers now as they did pre-COVID-19. 

However, nearly a third (32%) of respondents also say there are some providers they will never work with because of how they managed business during the pandemic.

“There are some companies that I will avoid completely based on colleagues’ feedback,” Genung said. “The bottom line is that so many pieces of the travel puzzle that we deal with every day are now valued so much more by consumers. The pandemic, as terrible as it has been, has really demonstrated the value advisors have. We will emerge in a better position than ever before as the pandemic has proven our value.”