To infinity and beyond. That’s the goal at one travel insurance brand this week, as space tourism looks like an insurable risk. Elsewhere…
START: LUXURY FLIGHTS
battleface (yeah, they do that lower case thing) announced this week that they would offer cover on celeb-style space flights, or maybe just a really high balloon trip. Technically it isn’t space travel just yet, as you’re really just aiming to orbit the Earth a few times, but this could be a growing niche in the luxury/adventure travel market if Elon Musk has his way.
RUN: STAYCATIONS ARE THE NEW NORMAL
The lifestyles of the super-rich are one thing, but for most Brits a Staycation has been the only realistic holiday plan made this summer. Ripe, a broker based in Manchester, sent Insurance Edge magazine some data on demand for caravan insurance. A rise of some 101% year-on-year shows that brokers can help serve the market shift in travel cover. The mass-market for most of us is now UK-based, as climate activists and Covid restrictions make overseas holidays an admin-heavy, and expensive, option in the future.
RUN: 5G IS OUR FRIEND
No, this isn’t an anti-vax item, relax..put that Tweet on the back-burner. No, one of the most popular articles this week was a piece on the benefits of improving 5G connections across the UK. One key point stands out; 5G speed allows brokers and insurers the chance to be on the policyholder’s side by keeping them in the loop over flood alerts, email scams, claims progress and so much more.
Add on the ability to send video and hi-res photos via 5G smartphones and you also increase the capacity for parametric claims, speeding things up and keeping everyone happy. Just saying.
GROW: ASSET VALUES ARE INCREASING FAST
Insurance Edge magazine took a look at increasing asset values this week, especially in property, classic vehicles and luxury watches. But the truth is, even in an era of crypto-currency mania not seen since the South Sea Bubble, people are still piling money into assets.
The trend to build extensions, home offices etc has been noted earlier in the pandemic. These extra square metres of living space offer brokers opportunities. Then there’s the value within the property itself, which in some parts of the UK is rising fast. That value can concentrate people’s minds, so when it’s renewal time you can have a conversation about protecting that cash value from care homes or councils.
When it comes to classic vehicles, a system of gathering data on auction prices realised, authenticating originality, and offering policyholders the chance to document the restoration work, could be a step towards pricing the value more accurately. Again, there are cross-selling opportunities with things like classic collections and protecting those assets from the State in the future.
AND GROW: DATA DEFINES RISK
A timely reminder this week from a FOI request. DVLA data on drivers picking up points on their licence, then cross-referencing that via postcode can highlight where the risk is, to a degree. If you’re curious, Bradford has the highest percentage of drivers with points on their licence.
This makes you realise how layers of publicly available data can be stacked on top of each other to understand risk in more detail. Could be fire, flood, trips and falls, laptop and smartphone thefts etc. Once you crunch that data, you also have a system, because you then bolt-on all sorts of extra cover options for consumers who live in these areas.
Yes, it’s time-consuming, but once you stack it correctly, data really does offer insurers and brokers the power to price products correctly.