Both general insurance brokers and financial advisors are well positioned to benefit from increasing demand for travel insurance products, say experts interviewed by The Insurance and Investment Journal.Luc Lavigueur, business development manager at April International Canada, says that when people reach retirement they decide to go on a trip. It is therefore in brokers’ best interests to offer travel insurance to their clients. And they are doing so, he says. “They are becoming more and more interested in it. It represents a good source of income for them, because the product is sold from July to November, or even December,” he comments.
In Mr. Lavigueur’s opinion, the trend is likely to increase as more workers retire in the coming years. Besides that, new retirees travel more than others.
Mimi Martin, president of MRM Special Risks, notes that many brokers are missing out on business opportunities within their own customer base. “Brokers have good reason to be interested in travel insurance, since a large part of their clientele go on trips. Potential clients are therefore easy to find,” she says. She also says she is surprised when she hears brokers asking where to find customers.
Robin Ingle, president of Ingle International, says that insurance brokers have more and more opportunities to sell travel insurance. He has a warning, however, for brokers and financial advisors who sell travel insurance.
Mr. Ingle says that Snowbirds are taking more trips because they are more active. Once they have reached their destination, however, Mr. Ingle points out that they could set out again, for example on a short-term cruise. As a result, he says their need for insurance varies.
Mr. Ingle thinks advisors should also be aware of the fact that insurers’ products change from one year to another. In his opinion, it is very important they review and understand the policy each year. He also believes that brokers and advisors have the upper hand, since they are the ones closest to their customers.