Your client remains your first priority

The world is dealing with a set of socio political and economic factors. This at times causes tension and at times proves to be the breeding ground of terrorist attacks which affect not only the people in the country where the attack occurs, but the global population as a whole.

It has been fifteen years since the attacks on the World Trade Centre and twenty one years since the Oklahoma City Bombings which opened the eyes of the world to the massive impact that terrorism can have. But are we any closer to a situation where terrorism is under control? What is the impact on travellers and the insurance industry?

Containing the threat?

What has the world taught us post 9/11 and the Oklahoma City Bombings? It taught us that terrorism is a global scourge and has little to do with the direct feelings that the attackers feel towards the victims. Often, the attackers are looking to attract attention to their cause or to raise opposition against a government or system that they feel is unfair.

Most certainly, Al Qaeda did not personally hate anyone working in the World Trade Centre. Neither did Timothy McVeigh and Terry Nichols – the perpetrators of the Oklahoma City Bombings – feel any animosity towards workers within the Alfred P. Murrah Federal Building.

These are attacks on mankind as much as an attack on a political ideal or regime, but have we got the situation under control?

We have seen multiple terrorist attacks in France and Germany, terror attacks in seemingly politically neutral nations such as Belgium and even Muslim nations such as Turkey. We are no closer to containing the threat; all we can do is manage it.

Fear driven introspection

Despite the threat of terrorism, international travel, be it for business or leisure is a multi-billion Dollar industry. But, this has been affected by acts of terror. I recently came across an interesting article that looks at the fears that UK travellers have and how it affects the travel insurance industry.

The nationwide UK poll was conducted by International Travel and Healthcare and was conducted in conjunction with YouGov. The research showed that there was an increasing need for insurers to provide financial protection for travellers against the effects of terrorism, with a total of 71% of respondents saying they were likely to purchase additional financial protection against terrorism for their holiday if the price was under a specific price.

While the statistics gained from the research makes for interesting reading, it also shows that the need for brokers to focus on this area is more pertinent now than it has ever been.

Burning questions

The research shows that a quarter of all 2 026 respondents believed that travel insurance policies usually cover the cost of cancelling a trip if an act of terrorism has occurred, while 32% believed that it covered the cost of cutting a trip short for the same reason.

More than a third of those questioned, 37% believe that travel insurance will provide cover for delays as a result of an act of terrorism. In reality, few if any, of these benefits are covered under standard travel insurance.

The survey found that only 24% of respondents who have taken out travel insurance said that they always read their policy wording fully and 58% read only some parts of their policy wording.

This shows that there is a need for different conversations between brokers and clients. Our first priority is our clients; and while there is understandable reluctance when it comes to spoon feeding clients (particularly when it comes to reading the policy schedule in full), we also need to look at why clients are not reading their policy schedules. Is it down to laziness or language they don’t understand?

The need for empowerment

In an effort to gain a better understanding about the terrorism issue, I came across an article written by Andrew Thomas, Associate Professor of Marketing and International Business at the University of Akron, which said that addressing the issue of terrorism is about empowerment.

Addressing the issue of terrorism is about empowerment of the individual to communicate easily, process data freely, access knowledge at the touch of a button, and travel without fear. It is about the empowerment of organisations to expand their global reach, focus on core competencies, and maximize performance.

Brokers and insurers have as much a role to play as international authorities. The public can sit and cower in the corner not wanting to travel to dream destinations or those necessary for business. But we can also travel to our destinations in a responsible way where we are protected.

Editor’s Thoughts:
There is demand for these products, and it is a way for brokers to grow their business while proving their worth to clients. Have you had any issues while handling travel insurance for your clients?  Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts jonathan@fanews.co.za.