Artificial intelligence is changing the way travel insurance is purchased. Here's how:
Artificial intelligence is changing the way travel insurance is purchased. From buying insurance to filing a claim, there is no part of it that is untouched by AI.
“AI is revolutionizing travel insurance,” said Greg Jung, chief growth officer at Seven Corners. “This makes our operations more efficient and allows us to tailor them to individual needs.”
Words like “efficient” and “tailor-made” are rare in the monolithic and bureaucratic travel insurance industry. For many years, consumers had limited choices. And when they filed claims, it took nearly forever to get an answer, much less get paid.
No more.
Jung says AI is eliminating that. Benefits for travelers include:
- Personalized coverage. AI can analyze vast amounts of data about traveler profiles, including travel history, preferences, and even risk factors such as age and health. This allows insurance companies to recommend customized travel insurance plans that provide the right level of coverage for each individual's needs.
- Proactive risk management. AI can analyze data to predict disruptions and emergencies that may impact a traveler’s journey. This allows insurance companies to provide assistance in the event of unforeseen circumstances, such as medical advice or assistance with rebooking flights.
- Faster claims processing. AI can automate much of the claims process, including verifying documents, assessing damages, and expediting settlements. Travelers can get eligible expenses reimbursed more quickly, especially for simple claims.
Travel insurance companies are also leveraging AI behind the scenes to better manage risk. There are also parts of the business that are reluctant to talk about how they use AI, such as travel insurance companies' efforts to sell insurance policies on their own sites. Travel insurance companies are also secretive about how they analyze data to set rates and identify patterns in fraudulent claims data.
It's been a while since I last talked about this. Travel insurance companies have generally been slow to adopt AI. While we can see artificial intelligence at work in some places, there are still some gaps in areas that matter to us, such as finding the best policy. AI won't solve everything in travel insurance, but it promises to improve a lot.
Why did travel insurance take so long?
Why has AI adoption been slow in the travel insurance industry? Well, it was, but it wasn't. Five years ago, I wrote about how Allianz used machine learning to improve its products.
But change is occurring gradually across the industry.
“Travel insurance is highly regulated,” explains Tim Dodge, vice president of marketing at Arch RoamRight. “There are strict policy definitions, communication guidelines, and adjudication rules that we must adhere to. For AI to be successful in our industry, it must be carefully implemented to improve the customer experience while maintaining regulatory compliance.” need to do it.”
If you're frustrated by the amount of time it takes to file a travel insurance claim, it's because of the way your travel insurance is set up. There are many necessary documents to consider to support your claim.
According to Dodge, AI could make the claims processing process easier, faster and less frustrating for claimants, which is what travel insurance companies are currently doing.
Where can we see AI in action in travel insurance today?
Travel insurance companies aren't waiting for the future.
Arch RoamRight's AI chatbots are integrated into every aspect of the customer experience, from phone systems to websites and travel agent portals. Dodge said it is also used as a training tool for new employees.
At Generali Global Assistance, carefully trained chatbots help customers receive instant support, accurate information, and navigate complex policies. Christopher Carnicelli, his CEO at Generali Global Assistance, said: “This digitalization will enable our agents to provide personalized support quickly.”
Allianz Travel Insurance has leveraged AI to streamline its claims process. A new chatbot for customer support has also been added. “Our chatbot supports our customers during their tax return in case they have questions or need further assistance, uses AI to identify their needs, and provides the necessary We provide fast support,” explains Maggie Butler, Director of Customer Experience at Allianz Partners USA. .
Faye Travel Insurance uses an AI-powered app to help customers file flight cancellations, baggage delays, and medical emergencies. The app speeds up the billing process, allowing travelers to receive payments in hours instead of days. “This is part of our commitment to make travel insurance an essential and personalized part of each traveler's experience,” said Elad Schaffer, his CEO at Faye.
Eventually, the entire travel insurance industry will embrace AI. However, there are exceptions.
Can artificial intelligence help you find the best travel insurance?
AI may help find better policies, but you need to know where to look. I tested the main AI and it said, “I'm a 28-year-old woman living in New York. She's planning a week-long trip to Paris this summer. Best travel insurance.”
- Gemini offered two options: Generali and Travel Insured International, but they didn't show any rates or links where I could book them. The answers seemed to be based on news articles.
- Meta AI generated a concise response citing the benefits of travel insurance that covers key coverages.
- Microsoft Copilot showed a general “how-to” story about travel insurance based on an article I wrote for Forbes.
- Hug Face gave a general response that included advice on how to get travel insurance.
- Perplexity offered several specific options, including Seven Corners, Nationwide, and Travelex. However, the company cited news site articles and did not provide a link to purchase the policy.
Bottom line: You can't really buy travel insurance using AI, at least not yet.
AI doesn’t work for everything in travel insurance
In the travel insurance industry, as in any other industry, artificial intelligence cannot solve everything.
For example, at INF Visitor Care, a company that sells travel insurance to travelers to the United States, AI is helping automate its claims system. INF applies machine learning to identify emerging trends in insurance claims and design policies that cover customers when needed for unexpected issues.
“We have revolutionized the way we think about pricing and coverage,” said PK Rao, CEO of INF Visitor Care.
However, when it comes to customer service, AI is not always the best solution.
“Customers enjoy talking to a live person via chat or phone,” adds Rao.
The future of travel insurance and AI is promising
In the long term, AI promises to reshape the travel insurance business into one that works as quickly, agile, and efficiently as customers expect.
At least that's what Daniel Green, chief technology officer at Fay Travel Insurance, thinks.
“Imagine a world where most insurance claims are processed in hours instead of days,” he says. “A computer system collects all the documents and perfectly prepares them so that a human can quickly decide whether to approve or not.”
AI also has the potential to provide “perfect” insurance, insuring only what is needed.
“Based on the fact that you can tell the computer what coverage you need in your own words, AI can prepare it in seconds by translating it into an insurance document and representing it on your behalf. ” he added.
We are not there yet, but we are getting closer.
There is one more thing potentially holding back AI from changing travel insurance. It's the customers themselves.
Most consumers understand that artificial intelligence and machine learning have a lot of potential, “but they're hesitant,” said Brianne Armstrong, director of insurance intelligence at J.D. Power.
Armstrong's observations are based on another recent study conducted by JD Power on bank customers and AI. Only 28% of respondents said they believe AI will improve their lives in the next three years. About a third said nothing would change, and 17% said their lives would get worse.
Just by working with a chatbot, you can understand 17% of respondents. Talking to an AI about banking, travel insurance, or anything else can quickly become frustrating.
“I have mixed feelings,” Armstrong added.
This may say a lot about how people feel about travel insurance and AI. That could be great. However, if not implemented carefully, the following can occur: do not have Very great.
