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Why is Symbo Going Deeper in Product Research and Creating Smart Travel Covers for Tech-Savvy Travelers?
The travel landscape has dramatically changed in recent years, especially in the wake of the COVID-19 pandemic. During the initial phase of the pandemic, many travelers faced significant challenges with insurance claims due to widespread trip cancellations. This unprecedented situation exposed glaring gaps in traditional travel insurance policies. Insurers, reacting to the crisis, began to review and adjust their underwriting practices to better address the needs of travelers during such uncertain times.
The Challenges faced by travel insurance companies across the globe
The traditional travel insurance model was ill-equipped to handle the massive wave of cancellations and changes prompted by the pandemic. Travelers sought flexibility to change or cancel their plans as circumstances evolved rapidly. Unfortunately, most typical insurance products did not cover these cases, leaving many without the protection they needed. According to a survey by InsureMyTrip, approximately 45% of travelers in 2020 experienced trip disruptions that their insurance policies did not cover.
Recognizing these shortcomings, Symbo has been working for the last two years on intense research and development to create innovative travel insurance products that cater to the needs of the modern, tech-savvy traveler. Our mission is to redefine travel insurance by going beyond conventional offerings and providing products that truly meet the evolving demands of our customers.
Let’s deeply understand these products & their applications for the travel industry.
Cancellations for Any Reason (CFAR)
One of the flagship products we’ve developed is the Customized Cancellations for Any Reason (CFAR) plan. This product provides travelers with unparalleled flexibility, allowing them to cancel their trips for any reason and receive reimbursement. This product offers travelers unparalleled flexibility, allowing them to cancel their trips for any reason, including simple changes of mind or unexpected work demands, and receive reimbursement of 50% to 75% of their prepaid, nonrefundable trip costs. The demand for such flexible travel insurance solutions has significantly increased, as evidenced by a 40% jump in purchase rates since the pandemic began, according to a report by Forbes.
These policies must typically be purchased within 10 to 21 days following the initial trip deposit and require cancellations to occur at least 48 to 72 hours before the scheduled departure. The added layer of security provided by CFAR, albeit at an extra cost, caters to a wide range of unforeseen circumstances beyond the standard reasons covered by typical cancellation policies.
As travelers increasingly recognize the necessity of comprehensive protection, the CFAR market has seen substantial growth. For instance, Howden Insurance Brokers India reports that the market has reached premiums of Rs 125 crore with projections to grow to Rs 250-300 crore by 2024-25.
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When travellers are booking flights or hotels on OTA apps they’re given a choice to upgrade to CFAR plans within the journey.
Cancellations for Medical Reasons (CFMR)
Health concerns have become a major factor in travel planning. Our Cancellations for Medical Reasons (CFMR) product ensures that travelers are covered if they need to cancel their trips due to medical issues. The Global Wellness Institute reports that medical travel insurance claims have risen by 35% since 2019, highlighting the importance of health-related travel coverage.
The CFMR coverage provides comprehensive reimbursement for the non-refundable, prepaid expenses of a trip if you, a traveling companion, or a non-traveling family member suddenly fall ill or pass away, offering reimbursement up to 100% of incurred costs including airfare, hotel bookings, and pre-planned excursions.
This type of coverage is a subset of broader Trip Cancellation benefits included in most travel insurance policies, designed specifically to protect against sudden medical emergencies. While it shares similarities with standard Trip Cancellation coverage—which includes a variety of reasons like weather issues and terrorism—CFMR is distinct in focusing solely on medical emergencies. Eligibility for a cancellation claim under medical reasons necessitates having a travel insurance policy with Trip Cancellation coverage, and the terms can vary significantly among insurers. In the event of a medical cancellation, documentation such as a doctor’s note must be provided to support the claim. This coverage is only applicable to non-refundable costs.
While going through the checkout of travel booking apps, this cover can be bundled as an extra protection to safeguard them from medical emergencies & cancellations.
Visa Delay and Denial Protection Plans
Delays or denials in visa processing can significantly disrupt travel plans. Visa Delay and Denial Protection Plans offer coverage for such scenarios, ensuring that travelers are not left stranded. According to the U.S. Travel Association, visa delays affected over 5 million travelers in 2022, making this type of protection increasingly relevant. To address these challenges, Visa Delay and Denial Protection Plans have been introduced, providing essential coverage for travelers caught in such predicaments, ensuring they are not left stranded or financially burdened. International travel is often contingent on securing a visa. If a visa application is denied or delayed, the traveler might have to cancel their trip. Standard travel insurance plans typically include Trip Cancellation coverage; however, these benefits are usually restricted to specific listed reasons like a death in the family, or severe weather, and do not cover visa-related issues.
Currently, very few insurance plans offer the added benefit of trip cancellation in the event of a visa rejection. If a visa is rejected for reasons beyond the customer’s control, with all necessary documents submitted correctly, the customer is eligible to make a claim. Notably, MakeMyTrip has introduced a “visa guarantee” product that offers travelers a full refund on their flight fares if their tourist visa is rejected, a response to the common problem of financial losses due to non-refundable travel bookings after visa denials.
While going through the checkout of travel booking apps, this cover can be bundled as an extra protection to safeguard them from medical emergencies & cancellations.
The Symbo Difference
At Symbo, we believe that travel insurance should be as dynamic and adaptable as the travelers it serves. Our products are designed with the modern, tech-savvy traveler in mind, ensuring that you have the coverage you need, when you need it. By leveraging advanced technology and deep industry insights, we are redefining travel insurance to offer more than just basic protection. We provide smart, comprehensive solutions that empower travelers. Whether you are navigating the complexities of international travel or dealing with unexpected events, our travel insurance stands ready to safeguard your adventures, giving you the freedom and security to explore without hesitation.
