The function of travel advisors has evolved significantly over time. Today’s travel consultants handle everything from air to resorts to immersion experiences to insurance and everything in between for their clients. Travel insurance is a market that clever agents are increasingly included in the important products and services they provide to their clients. Advisors profit from the additional money generated by selling travel insurance while providing the best protection to their customers.
We spoke with a number of travel advisors and discovered seven key points that can help advisors sell travel insurance more effectively. Consider trying on any or all of them to see how they fit.
1. Always provide travel insurance to all of your clients for all of their trips.
“Oh, I’m absolutely going on this trip,” some clients will say. “I’m not going anywhere, so I don’t need travel insurance.” Don’t stop there, though. Because no one knows what will happen in the interim.
“We instruct our agents not to seal a sale or take a credit card until they bring up the option of travel insurance,” said Geoffrey Cox, vice president of sales at KHM Travel (a host agency based in Brunswick, Ohio, with 5,000 independent contractors around the country). “Every time we sell it, we sell it twice.” We bring it up and explain why it’s vital if they don’t want it. We might even show them some examples of travel nightmares that have occurred as a result of people not purchasing travel insurance.”
Customers were furious because they were meant to travel for a trip in Mexico but couldn’t because of Hurricane Dorian, Cox learned in early September from an agent. Their flight to Florida was canceled, but the resort remained open. “Well, we can’t fly there,” they said. “If they had travel insurance, they would have been OK,” Cox added. Now we have to return to the hotel and make arrangements for them.”
2. Inform them that their health insurance in the United States is unlikely to cover them while they are abroad.
Inform your clients that their U.S. health insurance will likely not cover them if they become critically ill or wounded while visiting another nation. “Foreign medical institutions and providers need cash payment up front and do not accept U.S. insurance plans,” according to the US State Department. Outside of the United States, Medicare does not provide coverage.” Then tell them that if they have travel insurance with emergency medical and dental benefits, it can reimburse for losses incurred as a result of covered crises while on vacation.
3. Don’t make suggestions just on the basis of price.
Cox also advises against offering clients the cheapest travel insurance coverage. Instead, explain why “being willing to pay a little extra for a better policy” is preferable. Examine the policy’s features and the amount of coverage they’ll receive for the money. They can buy a far better policy for a few extra bucks, usually through a third party.”
4. When it’s suitable, offer an annual travel insurance package.
“It’s best to obtain annual coverage for clients that make a lot of small trips,” said Sue Doyle, a travel agent with Montecito Village Travel in Santa Barbara, California. “In the long term, they’ll pay less.”
5. Get clients to sign a waiver if they don’t want to purchase travel insurance.
If a consumer declines to acquire travel insurance, Kristin Bodin, owner of Acadiana Travel in Lafayette, Louisiana, advises, “always ask them to sign a release claiming they declined it.” You must cover all bases and thoroughly comprehend the trip and cancellation policies and make this apparent to them. That would be my first piece of advice to fellow travel brokers.”
6. Tell compelling stories about the advantages of getting travel insurance.
“I had a family (mom, dad, and three kids) that traveled to Europe,” says Marco Ruiz, a travel consultant at AAA Travel Monterey, as an example. The mother became ill in the middle of changing trains in Milan, Italy, on her trip to Venice from Lake Como (she was a cancer survivor). On the platform, she passed out. No one wanted to help her since in Italy, if a person is unable to sit up, they must wait for paramedics. Finally, paramedics arrived and transported her to the hospital. They never made it to Venice, and their aim had been to travel from there to Ireland.
“I went inside and spoke with the insurance company.” There was a three-day hospital charge as well as the family’s hotel stay. The Venice vacation, which was non-refundable and cost over $5,000, had to be canceled.
“At the end of the day, the mother didn’t have a stroke.” She was experiencing vertigo as a result of her anxiety and excitement. Their travel insurance covered the time they spent in Milan, Venice, and rebooked tickets to complete the balance of their journey.”
Not only did having travel insurance save the family’s trip, but it also helped Ruiz and his clients form a strong friendship. “She’s now my permanent client.” And, because she is a local news presenter, she refers a lot of people to me,” he explained.
7. Check to see if the travel insurance you’re selling includes commission protection.
The primary goal of travel insurance is to safeguard your customers. However, you, as a travel agency, require security as well. The majority of plans do not cover commissions paid to travel agents. “This is incredibly essential,” Ruiz added. I could be putting in a lot of effort on a vacation. It’s ideal if the customer receives their money back. However, I put a lot of effort into the trip, and if it is canceled, we must return the commission to the provider.”
Can a travel agent sell insurance?
Many travelers prefer the ease of purchasing their trip and travel insurance from the same company; however, this convenience and perceived cost savings may come at a cost.
Travel agents frequently use the word “travel insurance” in an ambiguous manner, which can be confusing for travelers looking to obtain coverage. These plans may be referred to as ‘benefit services,’ ‘waiver plans,’ or ‘travel protection,’ but they are not travel insurance in the strictest sense.
Reasons to be wary of purchasing travel insurance from your travel agent
There are several reasons to be cautious when your travel agent offers you a protection plan, including:
- Travel agents can supplement their income by selling travel insurance, but they may only offer the policies that pay the highest commissions.
- Only a few plans from a small number of travel insurance providers may be available to travel brokers.
- While some travel businesses employ at least one agent who is licensed to sell travel insurance, the majority of travel agents are not.
- A legitimate underwriter may or may not back a travel agent’s protection plans.
The differences between a travel protection or waiver plan purchased through a travel agent and a travel insurance plan acquired through a certified travel insurance agent may be overlooked by travelers purchasing a “travel protection plan.”
Differences between purchasing from a 3rd party company vs. a travel agent
While some travel businesses partner with a qualified travel insurance agent, it’s crucial to be sure the plan you’re buying is exactly what you need. Travel insurance helps with this by offering a free look time (typically 10-15 days) during which you can check the policy and ensure you have the coverage you require. You can also make adjustments to your coverage or cancel it during this time (for a small fee).
How to avoid purchasing a fake travel plan
- To begin, you should know that travel insurance is a state-regulated sector, which means you’ll be protected legally if you buy from a state-licensed agency. A.M. Best, a global insurance rating and information firm, rates real travel insurance businesses and backs them up with regulated underwriters. Check out the A.M. Best Travel Insurance ratings.
- Second, it’s critical to comparison shop. This is true of any online one-click-to-buy-now plan. With a comparison engine, comparing the features and rates of plans offered by your travel agent with those offered by independent travel insurance businesses is simple (see How to Compare Quotes with a Travel Insurance Comparison Site).
- Finally, when you acquire a policy, make sure you read it thoroughly (this is also suggested for travel insurance coverage). Most travel insurance firms include a free trial period (generally 10-14 days) during which you can cancel and receive a refund (usually your plan cost minus a small processing fee). The same review time may not be available under all travel agent protection programs.
If you elect to buy through your travel agent, make sure to inquire who you should contact if you get into problems while on your trip. All travel insurance policies include global assistance services that are available 24 hours a day, seven days a week and can assist travelers in a variety of ways.
Summary
- Some travel insurance plans sold by travel agents aren’t 100 percent comprehensive, and they don’t provide the same level of protection.
- Third-party travel insurance providers provide a variety of plans that may be compared using a comparison engine.
How do travel agents benefit from selling travel insurance?
“Selling travel insurance gives your customers a convenient one-stop shop in the event of an emergency or catastrophe.
Can you sell insurance internationally?
Foreign nationals, non-resident aliens, and those who are not yet qualified for a social security number but must submit federal taxes are issued International Tax Identification Number (ITIN) numbers.
Non-resident aliens who labor in border states but are not US citizens are an example of these people. They may return to Mexico frequently and require health insurance that is valid on both sides of the border. Your clientele, for example, return to Mexico for holidays, vacations, or even family gatherings. They shouldn’t have to travel without insurance.
If you work with clients who don’t have social security numbers or who don’t live in the United States, you should consider selling them foreign health insurance.
The only thing to keep in mind is that you can only sell overseas health insurance to those who are not citizens of the United States.
Non-citizens who live and work in the United States are able to purchase international health insurance from you.
What kind of insurance does a travel agent need?
Who needs the insurance of a travel agent? Errors and omissions insurance, as well as general liability insurance, should be carried by travel agencies that assist clients and customers in booking transportation, accommodation, and entertainment plans.
Can I sell insurance outside the Philippines?
THE PHILIPPINES MANILA, Philippines According to Sun Life Financial executives, the overseas Filipino worker (OFW) sector is a very significant but difficult market to reach.
At a press conference on Thursday, June 27, Lourdes Lopa, Chief Marketing Officer of Sun Life Financial Philippines, claimed that regulatory restrictions are impeding a potentially lucrative market for OFWs.
“For the previous ten years, we’ve identified OFWs as a viable market. We’ve been looking for a means to contact them. “They’re the ones that really need it,” Lopa explained.
OFW remittances are a significant source of income for many Filipino households. In many circumstances, they are the family’s sole earner.
“OFWs are a group in desperate need of protection. Rizalina Mantaring, president and CEO of Sun Life Financial Philippines, stated, “That is something we are paying a lot of attention to.”
Regulatory barriers prevent local life insurance brokers like Sun Life Financial from tapping into the market, despite the fact that they are a market that may profit from the financial product.
“Regulations make it tough for OFWs to work. To be able to sign the insurance policy, they must be in the Philippines. We can’t sell to them when they’re abroad, and most jurisdictions have the same restriction: you can only sell goods that has been approved and sold by a licensed individual in that jurisdiction,” Mantaring explained.
“We’re hoping that technological advancements can help to change that. “Whether you can conduct business online or on video is still a hazy issue right now,” Lopa remarked.
Using technology to overcome the obstacles of doing business in another country has flaws as well.
“Analyzing the client is quite challenging. You won’t notice certain features if you aren’t dealing with someone face to face. For example, you can’t observe the person’s health issues, skin color, movement patterns, and so on. “There are some things they won’t tell you about that you’ll notice only when you see them in person,” Mantaring explained.
“As a regulator, I’d want to make certain they get the correct bundle. It’s difficult when the meeting isn’t face-to-face,” she remarked.
It’s also tough to capture the OFW market during their visits to the Philippines, because the OFW’s time is already limited.
Step 3: Account Setup
Following the signup procedure, a dialogue box will open, prompting you to provide your company’s information, including its name, currency, and contact information. To go to the next stage, you must complete in all of these details.
Step 4: Connect Payment Gateways & Start Health Insurance Selling Business Online
You can use the test payment mode to see how the payment collection procedure works for the first time, as illustrated in the image above. Other payment channels, such as PayPal, Stripe, and others, must be connected afterwards. The following is a complete payment gateway integration guide:
Step 5: Add Product For Your Health Insurance
Add the product after you’ve enabled payment mode. You can include several types of health insurance, such as life cancer coverage, life cardiac coverage, and so on.
By developing different plans, you can incorporate all of the other health insurance into the same package.
Note: By developing plans for each of the products in the similar category, you may include them all here.
(b) Specify the Plan & Pricing Details
You are redirected to the plan page after creating a plan, where you must fill in the plan data such as plan name, code, billing cycle, price, description, and so on.
(c) Add Image & Description of Health Insurance
Add your health insurance plan by writing a description, including product links, photographs, and other information, and then clicking the submit button.
In a similar fashion, you can construct more plans for all different types of health insurance.
Step 7: Share your Checkout Page
- Copy the provided link and send it directly to your consumers by SMS or email.
- Include a link to your plan on your website so that customers may go straight to the checkout page.
Step 10: Multiplan Checkout Page
Note: You can develop a multi-plan checkout page if you want to offer numerous products on a single checkout page; otherwise, skip this step.
Why is travel insurance so expensive?
Travel insurance is likely to be more expensive when you go on longer vacations. This is because the longer you’re gone, the more likely you are to suffer an accident, require medical treatment for a sickness, or misplace personal items.