Since the end of the COVID-19 pandemic, different industry stakeholders have reported increasing broker opportunities in the corporate travel space. Some of those stakeholders say the SME market is a source of those opportunities, particularly when SMEs need travel covers that fall into a gap between the more basic offerings and the complex covers bought by big corporate firms.
“We saw an opportunity to fill a gap in the market with a flexible, service-driven solution,” said Michelle McKellar (pictured) with Keystone Underwriting Australia. After consultations with its brokers, Keystone recently launched a corporate travel insurance offering.
“The demand was clear,” said the Brisbane-based underwriter. McKellar described travel as a “natural extension” of existing broker offerings to SME clients.
“Travel is one of those covers that can be overlooked or bundled into a broader package without much thought, but when something goes wrong overseas, the impact on a business can be significant,” she said. “We see corporate travel as a real opportunity for brokers, especially in the SME space.”
McKellar suggested, in line with other reports on changed travel habits, that the global shock of COVID-19 has made tourists and business travellers more risk averse.
“As business travel rebounds, especially post-COVID, companies are more conscious than ever about duty of care,” she said. “They want to know their people and, in many cases, the businesses themselves, are properly protected.”
McKellar said brokers who are already selling covers to SME clients are in a strong position to have a travel coverage conversation.
“It adds value, strengthens the relationship, and opens new revenue streams without needing to acquire a brand-new client base,” she said.
The insurance offerings currently available in the corporate travel insurance space can vary.
“Most insurers offer policies that cover core areas like medical expenses, cancellation, loss of deposits, baggage, personal liability and repatriation – but the level of coverage, flexibility and service can really differ,” said McKellar.
She said some of these policies also include cover for an accompanying spouse, leisure travel and weekly sickness benefits.
“We also include cover for things like rental vehicle excess, repatriation and even some leisure travel components,” said McKellar.
The strategy, she said, is to focus on the gap her firm identified in the SME market.
“We’ve found there’s often a gap between basic off-the-shelf policies and the more complex programs,” said McKellar. “SME clients still need solid, dependable coverage but they also value simplicity, fast turnaround and service.”
The underwriter said that some SME businesses do buy their cover through direct channels but many prefer working through brokers.
Gainullin is CEO of battleface, an insurer-backed provider of tech-focused travel coverage offerings.
He also said his firm’s relationships with global brokers and broker networks also help it select “the right service companies behind the travel insurance products.”
Some agencies also see opportunities through brokers covering the leisure travel of their corporate customers.
“We wanted to give brokers the ability, where they do see gaps in the corporate travel insurance offering, to be able to offer a leisure, personal trip, travel insurance as well,” said Michael Storozhev. “Brokers came to us saying that this was something that they wanted access to first up.”
Storozhev is chief underwriter for PassportCard Australia. He said the customers that are buying his firm’s offering through their brokers often already have a commercial, home or motor policy with the broker.
Australian Bureau of Statistics (ABS) data strongly suggests the number of Australians travelling overseas is continuing to increase. The latest release from the ABS detailing overseas arrivals and departures found that Australian residents made about 840,000 trips during March, an increase on last year of nearly 10% and higher than pre-COVID levels.
Other ABS data showed that about 66,800 of those March trips were for business reasons. This number has increased strongly in recent years. In March 2022, just after Australia reopened international borders following COVID-19, the number was about 13,800.
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