SINGAPORE: A recent study showed that 27% of Singaporeans find the difficulty in making claims a major barrier to getting travel insurance. This issue has become a key reason why many people avoid getting coverage, despite the increasing need for it.
According to the report from Klook Protect, Klook’s travel-first insurance arm, traditional travel insurance doesn’t meet the needs of today’s travellers. About 17% of respondents, including those from Singapore, are discouraged from buying insurance because of these problems. For Singaporeans, the biggest complaint is the difficulty in making claims, which discourages them from purchasing travel insurance.
Travellers now face a variety of risks that have changed the landscape of travel insurance. Singaporeans look for insurance mainly for medical emergencies (53%), lost baggage (44%), and trip cancellations or interruptions (40%). However, the complicated nature of current insurance policies often leads people to skip getting coverage altogether.
When it comes to buying travel insurance, more Singaporeans are choosing online platforms. About 57% buy their insurance online, which is higher than the global average of 49%. Despite this convenience, 30% of Singaporeans wait until just days or a week before their trip to buy insurance, and 64% wait less than a month.
Chuan Sheng (C.S.) Soong, Chief Executive Officer of Klook Protect said that younger travellers, particularly Millennials and Gen Zs, are driving changes in how travel insurance is used. They want insurance that suits their adventurous and tech-friendly lifestyles. They are looking for coverage that fits their need for excitement and flexibility.
“This is why there’s a gap in the market for different types of travel insurance that reflects their travel habits alongside elevating the quality of their holiday,” he added.
The problem of making claims is not unique to Singapore. Similar issues are reported in Malaysia, Hong Kong, and the Philippines. In Singapore, 34% of people find making claims difficult, which is also a concern in Malaysia (36%) and Hong Kong (21%). In addition, 40% of travellers from the Philippines are highly focused on value, with price being their top consideration.
Klook Protect’s research found that 21% of travellers want travel insurance that is less traditional and better matches their adventurous habits. Meanwhile, 34% want the process of getting insurance to be enjoyable, 13% prefer a more progressive approach, and 8% seek more transformative options.
Besides difficulty with claims, modern travellers are also discouraged by unclear coverage (22%), complex processes (22%), and lengthy procedures (20%). Millennials and Gen Zs, who want convenience and flexibility, find traditional insurance insufficient. According to the report, 75% prefer booking flights, accommodation, and insurance all in one place, with 28% “strongly agreeing.”
Mr Soong said that travel insurance needs to be modernised for a better travelling experience. He pointed out that insurance should “insure the good times for travellers.”
He added, “There is a need for new travel insurance standards, as travellers are dragging their feet to purchase travel insurance, feeling overwhelmed by options and still not finding what they need. Our research has made us aware that adventure seekers in particular, have had bad experiences with travel insurance in the past due to their claims falling out of the insurance coverage scope, or difficulties in finding suitable insurance in the first place.”
He added, “There is a gap in the market for travel insurance that can address such needs, and people deserve to have insurance that allows them to enjoy the adventures that they want without having to worry about the aftermath.” /TISG
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