Uninsured and Unaware: Klook Protect Survey Exposes Travel Insurance Gap Among One-Third of Asian Adventure Seekers

Understanding the Travel Insurance Gap: Meeting Modern Travellers’ Needs

Philippines – Klook, Asia’s leading platform for experiences and travel services, reveals key findings under a new research conducted by Klook Protect, its travel-first insurance arm. Exploring consumer attitudes, behaviours, and lifestyles impacting travel insurance today, ‘Travel Troubles Beyond Lost Luggage 2024’¹ looks into the gaps and dynamic protection needs of Millennial and GenZ travellers who are often exposed to higher risk than previous generations of travellers.

“Millennials and GenZs are looking for travel insurance that goes beyond protecting their general safety, they want to be fearless and experience the thrill. They’re tech-savvy and independent travellers that embrace unpredictable adventure and exploratory spirit. This is why there’s a gap in the market for different types of travel insurance that reflects their travel habits alongside elevating the quality of their holiday,” said Chuan Sheng (C.S.) Soong, Chief Executive Officer of Klook Protect.

• Traditional travel insurance does not meet the needs of modern travelers today, discouraging 17% of respondents from purchasing it together, making them compromise on their freedom and aspirations. 21% of respondents across Singapore, Hong Kong, the Philippines, Malaysia, and South Korea want less traditional travel insurance.

• Millennials and GenZs have dynamic and diverse protection needs during their travels, partly due to an increased appetite for local experiences and adventure, exposing them to more risk than travelers from older generations.
• New criteria for travel insurance have emerged, as 38% want their insurance to include more modern travel risks like climate disasters and travel scams, to coverage for what they leave behind on their holidays – from pets to their house.

Travelling in 2024 comes with a few added layers of risk compared to previous years. Among many factors, climate change, economic pressures and health concerns have all led to disrupted travel plans and potentially impacting safety in certain destinations. Examples include deadly flight turbulence, increased crime rates in high tourist areas, and health risks such as climate-sensitive infectious diseases.

Key findings from the report are below.

Traditional travel insurance fails to keep up with the fast-evolving needs of modern travellers today. 

¹In association with Canvas8, the research was conducted with 2,500 respondents aged 18 – 80 across Singapore, Hong Kong, the Philippines, Malaysia and South Korea.

Millennials and GenZs have ushered in a new way to travel and among all surveyed, 21% expressed their desire for less traditional travel insurance because these products tend to follow a cookie-cutter approach that is now outdated. Specifically, 34.1% want the process of getting travel insurance to be enjoyable, followed by 12.7% and 8.1% who want a more progressive and transformational provider respectively.

Difficulties in making claims (25%), understanding what is covered (22%), and having processes that are too complex (22%) or too long (20%) were key factors in discouraging modern travellers from purchasing travel insurance. Considering that convenience and flexibility are high priorities for Millennials and Gen Zs, the complexities behind traditional travel insurance don’t even meet their basic preferences as a consumer. Furthermore, 75% of travellers prefer to book aspects of their trips (flights, accommodation, insurance) all in one place, with 28% of those respondents ‘strongly agreeing’.

Malaysia (36%), Singapore (34%), and Hong Kong (21%) are the top markets with travellers highlighting difficulty in making claims. At the same time, the Philippines has a whopping 40% of travellers who are more value-conscious, ranking price as the top reason.

Millennials and Gen Zs need different protection and preparation from unforeseen events as they are exposed to higher risk.

48% of travellers under the age of 35 are often drawn to adventure travel, and exposed to more risk during vacation due to solo or unplanned ventures. This includes activities like extreme sports, off-the-beaten-path destinations, and physically demanding experiences. Although exciting, these activities inherently carry a higher risk of injury or accidents, when compared to more traditional sightseeing. Furthermore, the disappointment of unwanted, unexpected moments or lack of achieving travel goals can ruin an entire trip.

Up to 46% of those surveyed take a leisure trip at least once every 3 months, which could be anything from an overnight stay to a backpacking trip. This causes some to prioritise budget travel which could involve staying in less-regulated accommodations or transportation options with lower safety standards.

Besides travelling on a whim, Millennials and Gen Z heavily rely on technology for navigation, communication, and even booking activities. Dependence on phone battery life or limited internet access in remote locations could pose further challenges in emergencies. Other new risks such as ride-share scams, misrepresentation of accommodation on websites, and poor safety standards from adventure providers will increasingly drive demand for protection against them.

Sharing what can be done to change the rigid state of travel insurance today given the heightened risk factors, C.S. Soong said, “Travel insurance definitely needs to be modernised for a better travelling experience. Klook Protect is the world’s first travel insurance that insures the good times for travellers, offering 100% refunds for activities that fall through due to bad weather conditions, or if travellers don’t see a shark during whale shark diving. It is travel insurance that is well-thought out and created based on our deep understanding of travellers’ needs, derived from our global user database and over half a million experiences available on our platform”.

Majority of travellers are unmotivated to buy travel insurance that’s currently available in the market, with some leaving purchasing decisions to the very last minute.

Despite the culture of over-preparedness and meticulous planning in Asian households, travellers from Hong Kong, Malaysia, the Philippines, as well as Singapore who lead the way in frequent travel, wait less than a month prior to make decisions on travel insurance. It is also found that Singaporeans (30%), Hong Kongers (36%), Malaysians (37%) and Filipinos (36%) buy coverage just days to a week before their trips.

One-fifth expressed concerns over the complexity of making insurance claims, while 32% indicated a strong preference for seamless, easy-to-claim policies. These findings underscore a much bigger opportunity in the market.

Commenting on this, C.S. Soong analysed that, “There is a need for new travel insurance standards, as travellers are dragging their feet to purchase travel insurance, feeling overwhelmed by options and still not finding what they need. Our research has made us aware that adventure seekers in particular, have had bad experiences with travel insurance in the past due to their claims falling out of the insurance coverage scope, or difficulties in finding suitable insurance in the first place. There is a gap in the market for travel insurance that can address such needs, and people deserve to have insurance that allows them to enjoy the adventures that they want without having to worry about the aftermath”.

Klook Protect has a smarter approach to insurance that also caters to Millennial and GenZ travel habits. With this new standard, travellers can make smarter choices that enrich their holiday experiences with insurance solutions that can understand and anticipate travel that is centred around fun activities and meaningful experiences.

Commissioned by award-winning consumer insights agency, Canvas8, this research was conducted among a sample of 2,500 respondents in February 2024 across 5 markets in Asia (Singapore, Malaysia, the Philippines, Hong Kong and South Korea).

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