Traveler’s insurance has seen a significant rise in popularity among individuals in their 20s and 30s, emerging as a “must-have” for those heading out on their vacations. The number of new contracts surged to 1.72 million in 2023, with over 1.73 million contracts recorded in the first half of 2024 alone. The market size for traveler’s insurance, based on the premiums, is expected to reach 100 billion won this year.
According to the insurance industry, nine major insurance companies—Meritz, Heungkuk, Samsung, Hyundai, KB, DB, AXA, NH Nonghyup, and Kakao Pay—have seen a significant increase in travel insurance contracts, with a total of 2,273,081 contracts signed between January and August 2024. This represents a 37.2% increase compared to the same period in the previous year, when the total was 1.657 million.
What Does Traveler’s Insurance Cover?
Traveler’s insurance provides financial protection for travelers in case of unexpected events during their trip. It covers:
Medical Treatment Costs: If travelers incur injuries or diseases during their trip, they can receive compensation for medical treatment costs at both domestic and foreign medical institutions.
Damage to Carry-On Item: Compensation for damages to personal belongings due to accidents during travel.
Flight and Baggage Delays: Special agreements offer compensation for expenses incurred due to flight cancellations, delays, or lost baggage.
Customized Special Agreements on the Rise
Recent developments in the industry have introduced customized special agreements to attract even more travelers. These policies provide coverage for:
Flight and Baggage Cancellations/Delays: Insurance policies now compensate for meals, accommodation, and transportation costs when flights or baggage are delayed or canceled.
Refunds for Return Without Incident: Some policies offer refunds if no accidents occur during the trip, adding further value for customers.
Immediate Payments for Flight Delays
Several major insurers, including KB Insurance, Samsung Fire & Marine Insurance, Kakao Pay Insurance, and Hyundai Marine & Marine Insurance, have introduced policies that guarantee compensation for flight delays exceeding a specified duration. This removes the hassle of submitting receipts for reimbursement, making the process much simpler.
No Need for Receipts: Previously, travelers had to submit receipts for expenses incurred during flight delays. The new policies now enable immediate payment for flight delays, eliminating this step.
Flexibility in Subscribing to Insurance
On-Demand Insurance: Insurance products are becoming more flexible. KB Insurance and Hanwha Insurance introduced products that can be purchased anytime and anywhere before departure, providing greater convenience for travelers.
App-Based Subscription: Lotte Insurance has introduced a product that can be subscribed to through an app just before boarding the plane, making it easier than ever for travelers to secure coverage at the last minute.
Conclusion
Traveler’s insurance is becoming increasingly essential, especially among younger generations who are more inclined to travel internationally. The introduction of flexible, immediate, and customizable insurance options is reshaping how travelers approach insurance, offering greater convenience and comprehensive protection for modern travel needs. With these new offerings, insurance companies are making it easier than ever for travelers to protect themselves from unforeseen events while on the road.
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