It’s said “Ignorance is Bliss”, but that’s not the case always. In light of terror attacks in Paris, growing number of international travelers are now increasingly turning sentient of benefits of buying travel insurance.
The sight from relaxed evening of picturesque locations, virgin beaches and host of exciting activities to one where one has to be admitted to a hospital definitely seems to be a nightmare.
However, such situations would be handled well, if one would be covered under travel insurance. Though, the emotional damage is something that these insurance companies cannot cover, but financial loss in such cases is a fact of life.
Amidst all these recent not so happening developments, ICICI Lombard General Insurance recently unveiled research insights on “Indian millennial’s attitude towards travel and travel insurance”.
A survey was undertaken to understand the millennial generation attitude towards travel while travelling overseas.
This was done in order to understand the decision making process of millennial for overseas travel and to understand the outlook towards risk and willingness to purchase travel insurance.
Why a survey just for Millennial, i.e. individuals with birth years ranging from the early 1980s to the early 2000s? This survey was taken on account of frequency at which this generation travell.
The survey revealed that unlike their parents who hardly travelled abroad, almost 9 in 10 Millennial travel overseas once a year. But like their parents, this generation also funded their overseas trip with savings.
In top ten dream destination of these Millennials, Singapore ranked first with 38% preference, followed by United States with 38%, United Kingdom (34%), Australia (26%), Malaysia (24%), Japan (21%) and China (19%).
Deciding factor for these destinations for one remain culture and heritage, which was favored by whopping 80% respondents.
Interestingly, 71% considered health and hygiene conditions of a country before planning a trip, while, 57% of those surveyed preferred a multi-location trip- the main reason being packaged tours and better discounts offered by travel companies.
Commenting on the survey, Mr. Sanjay Dutta, chief underwriting claims and re-insurance, ICICI Lombard General Insurance Company Ltd said, “The survey across six cities reflects the growing aspirations of young, emergent India.
Travel and experiencing multi cultures is a priority for them. However, he threw light on how despite being aware and wanting to undertake multi country trips, very few Millennial actually insured their travel, primarily because of lack of understanding of insurance benefits”.
He highlighted that while 90% Millennial were aware of travel insurance, only 2 of 5 respondents actually purchased travel insurance for overseas travel, with primary drivers being medical emergency and luggage safety.
However, he reasoned out that the one’s who did not purchase insurance were led by myths like lack of requirement, expensive, funds only accident, theft with no medical support, etc.
Mr. Datta said that travel insurance only contributed to 2% of overall revenue of the company- a trend which was observed across the industry as motor and health insurance were the biggest segments.
He pointed that perception of insurance being expensive as the reason behind this low contribution to this segment and further revealed that cost of insurance was as low as Rs.100/ day for travel to US; Rs 30-35/ day for South East Countries.
Curated from Want to fly high? Why not with travel insurance