Share Tweet Share Share Share Print E-mail Admittedly, the launch of an innovative travel insurance product may seem strange, given the number of contracts that the tourism industry has contracted following the global pandemic. But the CEO Travel insurance platform Ugo Weyl Koala said Karen Webster recently said that this is the perfect time to disrupt what is viewed by consumers as a hideously frightened experience. In fact, according to Weyl, in an environment where everything related to tourism seems in the air (no pun intended), travel insurance is one of the few points of consistency. Unfortunately, Weyl added that it’s often always frustrating – and largely a terrible experience for consumers trying to recover from trip cancellations. Weyl said Koala aims to make travel insurance a new one journey towards reliability as tourism tries to hit the road. to recovery. He said it was the only way to reassure potential passengers enough to get back on the plane. “What we really aim for is the” wow effect “for consumers,” he said. “The experience right now with travel insurance is pretty much the opposite of the wow effect, because it’s usually terrible, and you never get your money back. What we really want to do is build something that is the opposite of that. After all, travel insurance that customers can only count on to make them unhappy after an already miserable travel experience is not reassuring and does not make confident consumers feel like they are booking a trip in today’s uncertain times ‘hui. Given the incredible uncertainty weighing on airlines in particular, consumers need to feel protected enough to book a trip well in advance, Weyl said. Carriers need consumers to start booking three months in advance, but customers don’t go if they don’t. I don’t know if there will be a new wave of viruses or new blockages in a place they want to travel. “So what we did [is] build a product that makes all of our partners’ reservations fully flexible, which means that people who choose can decide to cancel their trip without reason without having to provide justification if they move to cancel before 24 hours before departure ”, said Weyl. “If they do, they get a 100% refund transferred to them.” This is just one of the many possible types of policies that Koala can create for its airline partners, who sell the coverage as a supplement to a ticket, or bundle it. Build a policy with travel providers in mind As a B2B2C firm, Koala builds insurance products for consumers, but supplies them through airlines and travel agencies. Their secret sauce monitors the trip in real time, so that if there is an event that would trigger insurance coverage, the consumer is automatically paid for this claim – literally without even filing one. Available policies may vary. For example, the first product manufactured by Koala is a flight delay or cancellation product. This fully reimburses customers if airlines cancel flights, delay flights by more than three hours, or if consumers themselves cancel trips more than 24 hours in advance. Koala also offers a variant that covers consumers against missed connections. The company monitors whether a traveler is likely to miss a connecting flight and automatically books the person on the next available flight to their final destination in order to avoid major interruptions. “Most of the time, we build custom insurance products based on what these customers tell us they need,” said Weyl. “Then we find policyholders for these policies, [which] we sell through travel players. Other variants offered by the company include the reimbursement of more and more money to customers as the delay in a flight continues. For example, a delay of 45 minutes could mean a refund of $ 45, while a delay of 10 hours would qualify the consumer for a payment of $ 600. For example, policies could protect those who are prohibited from boarding a flight because they fail to control the temperature. “We are building a product [that is] will actually pay for a hotel to have this passenger quarantined so they can stay free for 14 days, “said Weyl. “It will also reimburse them for the missed trip.” However, he stated that such policies are very difficult to create since there is very little hard information to calculate the risk levels (and therefore the pricing) on the cover. But Weyl said Koala is working with underwriters willing to take “innovative risks” in terms of assumptions, as well as adjusting prices based on actual results over the next few months. Ultimate objective: automatically group insurance with tickets Koala builds its products to be complementary to the ticket sales process that consumers can easily choose to buy. Customers can even provide their card or bank information so that Koala will automatically and instantly transfer them in the event of payment. Weyl added that with some digital banks, the process is even simpler and only requires consumers to offer their phone numbers for refunds which are instantly pushed in the event of a viable claim. Weyl said it might not not make sense for all seats, as economy class travelers are notoriously sensitive to even small price increases by airlines. But he said that “for a business class ticket of $ 2,000, a traveler can add a few dollars or euros to the cost (which their employer will likely pay) without any real effect. [and] offer a very good customer experience where there is no complicated complaints process. [If] something breaks, you fix it and you are quickly compensated. But ultimately, he said he sees the best distribution model as one where insurance is built into the base cost of a trip. Instead of offering insurance, airlines could simply incorporate reliable and flexible travel insurance into their fares. He said he hopes that since the Koala product takes away the right of the traveler to file any other claims, as covered by EU regulations, airlines will be encouraged to make it part of the price of their ticket, as an added value for their travelers. a simple idea, but one that represents a radical change in the way travel insurance is offered today. However, he said this is a change that is desperately needed right now as travelers are looking for insurance – and insurance – that they can really count on .—————————— New PYMNTS Study: Subscription trade conversion index – July 2020 Staying at home 24/7 encourages consumers to turn to subscription services for entertainment and their daily needs. While this is a great opportunity for suppliers, it is also a challenge – 27.4 million consumers are looking to cancel their subscriptions due to friction and cost issues. In the latest subscription trade conversion index, PYMNTS reveals the five key characteristics that can help businesses retain subscribers despite today’s difficult economic conditions.
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