Many young Canadians are travelling outside of the country without travel insurance protection, reveals a new study by Allianz Global Assistance.
The study found that 43.4 per cent of Canadians who say they do not purchase travel insurance every time they leave the country are millennials (ages 18-34).
Feel it is unnecessary
The survey data was collected for Allianz by The Conference Board of Canada. Those surveyed who reported travelling without travel coverage explained they felt it was unnecessary (15.8 per cent), too expensive (15.3 per cent), or that their trip was too short to bother getting insured (14.9 per cent).
“Seeing the results of these consumer insights paints a very clear picture about the need for better understanding among young Canadians regarding travel insurance,” says Dan Keon, senior director, market management, Allianz Global Assistance. “Factors such as the length of a trip don’t necessarily make anyone safer or less prone, or for that matter, lessen the resulting medical bills if something happens while on that trip.”
Highest demographic bracket for claims
The survey results contrast with internal claims data reviewed by Allianz showing that from 2014 to 2016, that people under the age of 30 made nearly 32 per cent of all claims submitted – the highest demographic bracket. This age group bought 21 per cent of all Allianz policies.
“Millennials and other young Canadians make up the majority of Destination Canada’s ‘Free Spirits’ category – travellers looking for adventure and more ‘authentic’ experiences. But the off-the-beaten-path travel experiences can also result in increased risks regardless of age,” says Keon. “When you boil it down, accident probability isn’t determined solely by age, time or the destination of your trip. Risk exists as a part of life and travel and everyone needs to be prepared to ensure they aren’t stuck with a much larger vacation bill than planned.”