| Apr 28, 2021
Carmel, Ind. (April 26, 2021) – Seven Corners, a leading travel insurance and specialty benefits company, has released data today around travel insurance trends in consumer purchasing habits throughout 2020 and the COVID-19 pandemic. The company pulled sales and claims information in order to share the key trends outlined below.
People still want to travel, and many have continued to do so throughout the pandemic
In June 2020, Seven Corners launched specialty plans that provide medical travel insurance covering COVID-19: Liaison Travel Plus, Liaison Student Plus and Wander Frequent Traveler Plus. The Plus plans cover a set amount in medical expenses for COVID-19, SARS-CoV-2; and any mutation or variation of SARS-CoV-2. Each of these updated plans represents a key segment of the travel market by focusing on benefits for international travelers, including student travelers and frequent travelers. Seven Corners was one of the first insurers in the industry to modify their products to offer this important protection.
Since the plans’ inception, Seven Corners has seen purchases from almost every country in the world. The top five countries with the highest number of Plus policies purchased include:
It’s encouraging to see that although travel decreased significantly in 2020, many people who needed to travel internationally were able to do so.
Customers appreciate the option to serve themselves when it makes sense
Seven Corners experienced a 1000% increase in contacts from customers early in the pandemic. To address their customers’ increased needs and improve service levels, the organization expanded their self-service options. With this change in 2020, Seven Corners saw a more than 1000% increase in customers exercising self-service options for submitting claims and updating their purchase.
This trend is not limited to travel in the pandemic world. It also represents a general customer trend over the past several years as customers have become more service oriented, seeking to take immediate action themselves instead of interacting with a customer representative.
Trip cancellation remains a key benefit
In 2020, approximately 87% of all claims Seven Corners received were for trip cancellation, making it the most important benefit for trip insurance purchasers. Additionally, this benefit begins working for travelers the day after a plan is bought and continues until trip departure, providing a long window of protection.
“Trip cancellation protection is especially relevant in a post-pandemic world with a large number of unknowns still remaining when it comes to travel,” said Jeremy Murchland, president of Seven Corners. “To get the most from your coverage, it’s important to buy the insurance as soon as possible so you have the option to cancel and recoup your nonrefundable trip expenses for the entire time that precedes your departure.”
Cancel for Any Reason (CFAR) coverage became more popular in 2020
As consumers started to learn more about the need for travel insurance during the pandemic, they also discovered the benefit of CFAR coverage, which is the only coverage option that allows travelers to cancel for any reason of their choosing, including fear of travel.
Travel insurance is a type of named perils plan, typically covering only the listed reasons for cancellation. CFAR provides an expansion of coverage by allowing the insured to cancel for any reason they wish. As a result of CFAR’s increase in popularity, Seven Corners saw a 180% increase in the sale of plans with CFAR in 2020 compared to 2019. This trend has continued into 2021.
Average age of travel insurance purchaser and average trip cost
Seven Corners’ data shows the average age of a trip protection plan purchaser is 43 years old, while the average age for consumers who buy a medical only plan for their trip is slightly younger at 39 years of age.
The average cost of a trip is approximately $3,000, indicating this is a material amount for most travelers as they buy trip insurance to protect their nonrefundable trip expenses if they need to cancel or interrupt their trip. With a trip protection plan, they also receive coverage for their baggage and personal effects and medical expenses if they become sick or hurt while traveling.
Seven Corners has detailed COVID-19 information on their website to clarify coverage provided by their RoundTrip products in relation to quarantine considerations. To learn more about how Seven Corners’ travel medical and trip protection products address the impacts of the pandemic, visit their Coronavirus page.