Undoubtedly, travel insurance was one of the insurance products most affected by the pandemic. On one hand, there was a sharp decline in the purchase of new policies, and on the other, there was a substantial increase in severe and complex medical claims to manage. Additionally, the claims ratios for trip cancellation coverage surged as the first global COVID cases emerged.
"Finally, as I have mentioned on several occasions, claims management systems were modified, bringing us much closer to the end customer. Currently, we find ourselves in a very different scenario. Policy purchase levels have almost reached pre-pandemic levels; customers of all ages now value having insurance for their international travels, and specialized insurers are reaping the rewards of all the efforts made in recent years, both in introducing new services and coverages and in claims management. However, it is true that inflation rates, affecting consumers' disposable income and increasing flight and hotel prices, prevent a complete recovery of the travel insurance sector. Moreover, from the supply perspective, the ongoing rise in international healthcare costs compels insurers to continuously renegotiate their network agreements and, ultimately, monitor the average costs per claim. Nonetheless, the future looks promising. Even if a significant portion of the international tourism growth projections for the next 20 years, made before the pandemic, materializes, the insurance sector is poised for years of sustained growth. Not only through the sale of stand-alone travel insurance but also through the continuous addition of these coverages and improvements in capital and services in health, life, accident policies, and generally in personal lines of insurance. Yet, there are challenges we must successfully address. One of the most significant will be how this type of insurance adapts to the new trends of sustainability gradually being integrated into leisure and corporate travels. I believe we'll somehow have to reflect in our products the effort of clients choosing to travel in a more sustainable manner.
Additionally, we'll need to include leisure periods in business travel insurances, increasingly present in corporate trips. Not forgetting the necessary adaptation of our coverages for groups traveling to regions with armed conflicts. Finally, given the significant number of individuals entering retirement age with sufficient incomes to travel, we'll need to carefully study the issue of pre-existing conditions in policy contracts. In essence, it's a new period of growth, challenges, and possibilities for travel insurance. View the news on INESE." "Finally, as I have mentioned on several occasions, claims management systems were modified, bringing us much closer to the end customer. Currently, we find ourselves in a very different scenario. Policy purchase levels have almost reached pre-pandemic levels; customers of all ages now value having insurance for their international travels, and specialized insurers are reaping the rewards of all the efforts made in recent years, both in introducing new services and coverages and in claims management.
However, it is true that inflation rates, affecting consumers' disposable income and increasing flight and hotel prices, prevent a complete recovery of the travel insurance sector. Moreover, from the supply perspective, the ongoing rise in international healthcare costs compels insurers to continuously renegotiate their network agreements and, ultimately, monitor the average costs per claim. Nonetheless, the future looks promising. Even if a significant portion of the international tourism growth projections for the next 20 years, made before the pandemic, materializes, the insurance sector is poised for years of sustained growth. Not only through the sale of stand-alone travel insurance but also through the continuous addition of these coverages and improvements in capital and services in health, life, accident policies, and generally in personal lines of insurance.
Yet, there are challenges we must successfully address. One of the most significant will be how this type of insurance adapts to the new trends of sustainability gradually being integrated into leisure and corporate travels. I believe we'll somehow have to reflect in our products the effort of clients choosing to travel in a more sustainable manner. Additionally, we'll need to include leisure periods in business travel insurances, increasingly present in corporate trips. Not forgetting the necessary adaptation of our coverages for groups traveling to regions with armed conflicts. Finally, given the significant number of individuals entering retirement age with sufficient incomes to travel, we'll need to carefully study the issue of pre-existing conditions in policy contracts. In essence, it's a new period of growth, challenges, and possibilities for travel insurance.
