Berkshire Hathaway Travel Protection said in a recently released white paper that it sees a 5% room for sales growth in the coming year.
The firm said 36% of Americans expect to buy more travel insurance this year while 61% of travel agents foresee rosy prospects for travel insurance in 2017, according to a
Business Wire report.
Other findings revealed that 41% of travelers said they plan to take more international leisure trips this year. This is significant for the travel insurance industry because the paper noted that 39% of international trips are insured as opposed to the 16% coverage rate for domestic travel.
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Furthermore, 45% of trips will be insured because of their relatively high cost. On average, costs are expected to increase by 4% due to currency fluctuations and spikes in accommodation costs, air fare and ground transportation, which are predicted to translate to higher revenues for travel insurers.
The market is also explaining more clearly the ins and outs of travel insurance, resulting in 40% of American travelers who said they intend to get coverage because they are more knowledgeable about the product.
Travelers will take out coverage to due to delay and health risks, the white paper also said.
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