Canadian Underwriter

Category: Ask the Experts

  • What are the Top 4 myths clients believe about travel insurance?

    What are the Top 4 myths clients believe about travel insurance?

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    Post-pandemic, Canadian travellers have realized how essential travel insurance has become, with almost 90% planning to buy coverage for their next trip, shows data from Allianz Global Assistance — a leading travel insurance provider. Despite this awareness, many clients still get stuck on some misconceptions surrounding travel insurance — presenting brokers with the opportunity to bring their clients the best protection, advice, and peace of mind, says Peter Denison, National Director of Allianz’s Broker Channel.

    “It’s crucial for a broker’s clients to understand their coverage and policy terms before making a purchase. That’s the unmatched value that insurance brokers bring to the trip-planning process,” Denison explains. “Just like home and auto, travel insurance protects your clients so that they can enjoy their vacations without worrying about potential financial burdens.”

    It’s especially important since travel insurance has evolved post-pandemic, Denison adds.

    Canadians plan to spend over $14 billion on vacations this year, according to Allianz’s Vacation Confidence Study, conducted by Ipsos in November 2022. And, since the pandemic has made travellers more risk aware than ever, almost 90% plan to buy travel insurance for their next trip.

    Unfortunately, Denison says, there are myths that seemingly cloak the travel insurance industry and can lead to confusion for clients and missed opportunities for brokers.

    That’s why Allianz empowers brokers with the right information, products, tools, and support they need to confidently, quickly, and easily offer their clients the best protection.

    To this end, Denison helps debunk some common misconceptions.

    TOP 4 MYTHS CLIENTS BELIEVE ABOUT TRAVEL INSURANCE

    • I’m healthy. I don’t need travel insurance.

    “The truth is, travel emergencies can happen at any time, to anyone — even while swimming in the pool, sightseeing, or out and about exploring,” Denison says. “And, it only takes one unexpected, unfortunate accident for the most perfect vacation to take a turn. This is where travel insurance comes in — offering your clients the right protection and peace of mind they deserve.”

    Comprehensive travel insurance covers not only medical emergencies, but also may include lost baggage and trip delays or cancellations, Denison adds. “I always say the easiest person to sell travel insurance to is someone who’s encountered a problem while travelling, because travel insurance truly is there for you when you need it most — during a medical emergency, when your baggage is lost, or if your trip is delayed.”

    • Travel insurance is complicated.

    “Insurance can be intimidating. But it doesn’t have to be with the guidance of a trusted insurance advisor. Allianz has spent a lot of time listening to brokers and clients and evolved our offerings to make it easier than ever for brokers to sell — and clients to buy — travel insurance,” Denison says.

    • Allianz’s fully refreshed outbound product suite has been designed with simplicity in mind. “One of the most common scares among brokers when selling travel insurance is helping their clients fill out lengthy medical questionnaires to qualify for coverage. Allianz’s new medical-screening process has only three simple questions, with no age maximum.”
    • Coupled with its newly launched sales platform, AdvisorMax, Allianz brings brokers a complete, seamless end-to-end solution designed to give greater flexibility, ease, and an all-around better experience while saving time.
    • And through Allianz Academy, brokers are set up for success with access to training programs, continued learning, and sales support to enhance their knowledge and confidence.
    • Travel insurance is too full of “noise.”

    “Drowning out the ‘noise’ in travel insurance and making sense of the different offerings and process are truly where brokers have the opportunity to shine,” Denison says. “Nothing compares to the value a trusted insurance advisor brings to the table. Well-advised clients benefit greatly from their insurance advisors’ expertise when selecting travel insurance policies and identifying the products that best suit their needs. Clients working with brokers are more apt to understand and appreciate the full potential of benefits (both medical and financial) that travel insurance offers.”

    As trusted insurance advisors, brokers have established good relationships with their clients, and know them well. For example, brokers know if their clients are frequent fliers or snowbirds, or go on annual family vacations. These personal relationships help brokers tailor travel insurance to their clients’ unique situation, Denison adds.

    • All travel insurance does is pay claims.

    “Of course, travel insurance is meant to give your clients the peace of mind that their policy could cover financial loss in the times they need it most. But with Allianz, travel insurance is so much more than that,” Denison says.

    • Allianz offers your clients 24/7 emergency assistance, with a global reach and a network of vetted medical facilities across the world. “We’re committed to helping our travelling clients find the most appropriate and accessible care — including virtual care — wherever they are and getting them back to their adventure or home as quickly and safely as possible.”
    • When a medical emergency derails a trip, Allianz’s in-house medical team of experienced physicians and nurses balances high-quality care for each client with thoughtful medical expense management. “Knowing how a personal approach can make a world of difference, we often send our own nurses to bring our clients home when they need it.”

    And when it comes to filing a claim, Allianz’s 24/7 mobile claims submission portal makes all the difference. “Ultimately, Allianz is there every step of the way in your client’s travel insurance journey, making travel insurance as worry-free as their vacation should be.”

    To grow your business with travel insurance, contact Peter Denison.

    Learn more about the Allianz advantage.

  • How does travel insurance add value to your brokerage?

    How does travel insurance add value to your brokerage?

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    Loyalty is trending among consumers. And there’s one sure way for your brokerage to increase loyalty among clients and get them the peace of mind they’re looking for.

    “Travel insurance is helping drive loyalty with insurance advisors who can help their clients experience worry-free vacations,” explains Roger Marcelo, Vice President of Business Development, Broker Channel, at Allianz Global Assistance, a leading travel insurance and assistance provider.

    “Travel is booming again, and more Canadian travellers than ever are turning to their brokers for expert advice on the right policy for their trips — placing brokers in the unique position to offer their clients a full circle of insurance protection that includes travel insurance,” he adds.

    VALUE OF TRAVEL INSURANCE Selling highly sought-after travel insurance to Canadian travellers is the exciting new opportunity brokers have been waiting for — and research from Allianz proves why.

    According to Allianz’s Vacation Confidence Study, conducted by Ipsos in November 2022, Canadians plan to spend over $14 billion on vacations this year — despite economic uncertainty. Post-pandemic, travellers have become more risk-aware than ever, and almost 90% say they plan to buy travel insurance for their next trip.

    “The pandemic and other events, like natural disasters such as Hurricane Fiona, have really caused people to appreciate the need for, and value of, travel insurance,” says Marcelo.

    The study showed one in three Canadians say travel insurance is even more important now when travelling abroad since COVID-19. While 37% of travellers said they can’t really afford a vacation this year, they plan on taking one anyway — and these travellers are especially looking to protect themselves and their travel investments.

    “And, perhaps not surprisingly, four in 10 Canadians say they would give the gift of travel insurance if they found out their loved ones were planning to travel without insurance. That really hits home just how important travel insurance has become to people after the pandemic. It’s an opportunity for brokers to have a conversation with their clients about upcoming travel plans and travel insurance, and show their value with expert advice. In turn, the client will feel the broker has their back, and they will have peace of mind knowing they can enjoy a seamless, worry-free vacation.”

    HELPING BROKERS SUCCEED Allianz has evolved to empower brokers with the tools, data, products, services, and support they need to offer the right protection to their clients — quickly, easily, and confidently.

    “Our fully refreshed product suite is a complete end-to-end solution designed for greater flexibility, ease, and an all-around better experience for brokers and their clients,” Marcelo says.

    “These robust products focus on the benefits that customers value most,” Marcelo adds.  “Our simplified policy language is refreshingly clear for clients and brokers while being consistent across products.”

    For example, Allianz knows Canadians value inclusivity, and the new products reflect this. “Mental health has been removed as an exclusion in our outbound products,” Marcelo explains. “The definition of ‘family’ has also been eliminated, creating a more inclusive experience because families come in all shapes and sizes.”

    Allianz’s newly launched point-of-sale platform, AdvisorMax, provides brokers with a modern, front-end portal and enhanced features that make selling policies intuitive. Some of the platform features that brokers are finding very useful include:

    • Convenient product displays offering side-by-side comparisons and flexible quoting by category.
    • Simplified medical screening with only three intuitive questions to drive ease and speed of quotation — now for travellers aged 65 and older.
    • Automatic renewals to make it easier to retain clients.

    “With the strength and credibility of the Allianz brand and additional value-added travel insurance and assistance services, such as 24/7 virtual care and mobile claim submission, brokers are able to offer their clients value and peace of mind,” Marcelo adds.

    “We are committed to helping our brokers every step of the way and ready to help Canadians explore the world safely and be there in the moments that matter most.”

    Allianz is helping brokers build their business with travel insurance in five ways:

    • Broad range of insurance solutions.
    • Brand loyalty through exceptional service.
    • Experienced, national sales support.
    • Enhanced knowledge and confidence through engaging training programs and continued learning.
    • Shared expertise and best practices across all distribution channels.

    To accelerate your business growth, contact Roger Marcelo

    Learn more about the Allianz advantage.

     

  • Why is travel insurance the next big opportunity for brokers?

    Why is travel insurance the next big opportunity for brokers?

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    It’s a new era for travel insurance.

    Despite economic uncertainty, Canadians plan to spend over $14 billion on vacations this year, according to new data from Allianz Global Assistance, a leading travel insurance provider. Post-pandemic, travellers have become more risk-aware than ever, and almost 90% say they plan to buy travel insurance for their next trip.

    “The pandemic has significantly shifted consumer attitudes around travel, forced a number of changes within the travel insurance industry, and shed new light on the peace of mind travel protection can bring,” says Lucy Hathaway, Allianz’s Chief Sales Officer. “While Canadians are highly aware of the need for travel insurance, they don’t necessarily understand what coverage is right for them. With travel approaching pre-pandemic levels, more and more Canadians are turning to their trusted insurance brokers for travel insurance and advice.”

    Widespread staffing shortages and prolonged supply chain issues continue to make travel more unpredictable. Challenges like flight cancellations and delays have become more common, causing travellers to plan better and seek protection.

    “The pandemic has forced people to think more about the ‘what if’ scenarios, and today, we all want to be prepared for the unexpected,” Hathaway says, adding that the majority of travellers now consider travel insurance as an essential part of their trip.

    “At Allianz, we recognize brokers want to provide their clients with the best protection and advice,” Hathaway says. “We want to make it easy for brokers to fill this renewed demand and want to be there for policyholders in the moments that matter most.”

    Opportunities to provide Canadian travellers with highly sought-after travel insurance are abundant for brokers — and the new data from Allianz proves why.

    SOARING DEMAND

    According to Allianz’s Vacation Confidence Study, conducted by Ipsos in November 2022, six in 10 Canadians plan to take a vacation in the next 12 months. “Canadian households are projected to spend around $14.3 billion on vacations in the upcoming year, eclipsing the pre-pandemic high recorded in Allianz’s 2019 annual survey,” Hathaway says, adding the pent-up demand for travel is clear.

    Equally as clear from the data is the awareness of travel risk and need for protection among consumers, she adds.

    The study indicates the following:

    • 89% of Canadians who intend to travel also intend to be covered by travel insurance for their next trip.
    • 74% of Canadians say that travel insurance is equally or more important post-pandemic, with three-quarters of millennials believing the same.
    • Six in 10 Canadian travellers remain worried about the possibility of COVID-19 impacting their travel plans, with those aged 55-plus (67%) most concerned.

    “The findings really hit home the fact that Canadians want to travel again, but they want to do it safely and securely,” Hathaway says. “And therein lies this exciting opportunity for brokers. Canadian travellers need guidance to find the right coverage for their unique trips and are counting on their brokers to help bring them the peace of mind they deserve.”

    HELPING BROKERS SUCCEED

    Allianz has evolved to empower brokers with the tools, data, products, services, and support brokers need to offer the right protection to their clients — quickly, easily, and confidently.

    “In a post-pandemic world, we recognize that a customer-centric approach is key, and we’ve invested heavily in technology solutions to make our processes seamless for brokers and clients,” Hathaway says.

    That’s why Allianz is proud to announce the launch of its new sales platform, AdvisorMax, and its fully refreshed outbound product suite — a complete end-to-end solution designed to give brokers greater flexibility, ease, and an all-around better experience while saving time.

    “As Canadians continue to increase their vacation confidence and venture beyond our borders, we remain committed to being with them every step of the way and are ready to help them in the moments that matter most with value-added travel insurance and assistance services, such as 24/7 virtual care and mobile claim submission services,” Hathaway says. “Planning your next adventure should be fun, not complicated. And that includes buying travel insurance.”

    To accelerate your business growth, contact Lucy Hathaway.  

    Learn more about the Allianz advantage.

  • Why should we be social on social media?

    Why should we be social on social media?

    Having a social media strategy is a proven approach that supports numerous business objectives such as growth, engagement, brand loyalty, SEO, and more. And with 25.35 million users in Canada, it makes sense that people’s buying decisions can be strongly influenced through social media.

    Are you, as a broker, taking advantage of its full marketing potential? Whether through purely organic content, or dabbling in paid advertising, social media offers numerous inherent benefits, including:

    • Increased brand awareness
    • Advanced corporate social responsibility and presence in your community
    • The opportunity to educate consumers
    • The ability to show your brand personality and culture
    • Surprise and delight your audience
    • A way to develop and test your content
    • The opportunity to listen to what matters to your audience and understand their needs

    Plus, it’s one of the most budget-friendly marketing tactics out there… organic content is free!

    You may already be paying to advertise one or more platforms, and hope this is enough to attract the business you want. But are you supporting these efforts by posting original content, responding to feedback, and sharing the stories of others? Social media is a conversation and an opportunity to build relationships. It offers a way to understand what is meaningful and matters to consumers. You can learn about your business landscape and environment, consumer concerns and what can make you stand out among the competition.

    No matter where your brokerage sits on the social media spectrum, your strategy should start with some basic planning. It’s important to identify your business challenge(s) and then determine what you want your social media strategy to look like in response. It can’t just be to grow your business – this limits your opportunity. Consider where you want to grow your business, what types of customers you want to attract, and what specifically you want to sell. And then develop your strategy to show consumers why they should choose your business.

    Once your research is done, you’ll have a stronger understanding of what you should say in a way that creates value for consumers. Take this, along with messaging that is based on your business objectives, and begin the conversation.

    • Start with creating content. No matter what your message is, or its goal, focus on creating content that is uniquely you. Content that is memorable and shareable. Whether it’s an article, infographic, video or tool, find ways to engage, showcase your effort, and move users beyond just reading the post. This is the opportunity to show off your brand innovation and unique proposition.
    • Inform your audience. Use your expertise to teach about the value of insurance, while squashing the myths, and offer support during the buying and claims processes. When you position your brokerage as insurance experts, this creates a competitive advantage. And if you receive questions or feedback, conduct one-off strategic communications (through the chat function) to address specific issues, requests and situations.
    • Show the love. If you see something on social media that you like, and that fits with your brand, let everyone know. If someone shares or supports your message through a ‘like’, thank them. Take this a step further by sharing others content. Curation is a key component to any successful social media campaign. Without sharing information or joining in on the conversation, your efforts are one-sided. Find articles, websites, videos that offer information in line with your brand, and share it on your channels. By sharing others’ content, they may share yours. Plus filling your social media pipeline with curated content means you do not have to create as many organic pieces of your own.
    • Support what you value. Your brand is comprised of values, and its personality demonstrates issues and causes you believe in. So why not share this on your channels? Support others by advocating for what they stand for. Look within your community for industry partners, organizations, charities and local businesses that you can champion on social media.
    • And repeat. Social media can become a bottomless pit, and you may hope that everything you post is read by all of your followers. To give more life to your content, repeat what you’ve shared by creating new messages that say the same as the original. By repeating your important messages, your channel will have a steady stream of content delivered to your audience.
    • Listen. A crucial part of your social journey must be monitoring the reactions, activities and comments on your channels. If any negative feedback is shared, be sure to respond rather than ignore it. Social listening tools can help with this process.

    When developing your social media marketing strategy, prioritize the efforts and tactics that will best meet your goals. By doing the work to plan based on your objectives, and by following these strategic steps, you will see the positive results that social media can offer your business.

  • Usage Based Insurance – What’s in it for Brokers?

    Usage Based Insurance – What’s in it for Brokers?

    A fundamental need for today’s insurance consumer is flexibility. As witnessed over the past year, consumers want choice when it comes to their auto insurance, and the ability to take control of their costs.

    Usage based insurance (UBI), otherwise known as insurance telematics, is a clear solution for consumers. So why aren’t more adopting the technology?

    UBI was first introduced in Canada in 2013. Since then, many insurers have introduced the technology as a means for their customers to potentially save money. CAA Insurance first launched our CAA Connect® telematics program – a way for drivers to save through a discount, based on observed good driving behaviour. However we wanted to take our UBI efforts a step further.

    In 2018 we launched our CAA MyPaceTM program – the first of its kind in Canada, and the only true pay-as-you-drive solution. The way it works: we charge a non-driving based premium upfront based on traditional variables, and we add on 1,000 kilometers worth of driving premium to start. Once this distance is exhausted, we add on another 1,000 kilometers, and so on. Distance driven is measured through a device plugged into the vehicle’s diagnostics port, similar to many UBI programs. Drivers are able to take control of their insurance costs, because they can monitor their driving distance (through an app or a portal) and make behavior and habit-forming adjustments. The program is suited to those who drive less than 9,000 kilometers a year, and customers who enroll can stand to save up to 60% on their insurance, versus a traditional automobile policy.

    Being Canada’s first pay-as-you-drive product, we worked closely with the Ontario regulator to develop the program, ensuring it was straightforward for customers. One key requirement was ensuring policyholders were notified well in advance of reaching their next 1,000 kilometer threshold. We do so by sending messages once they’ve reached 750, 900 and 950 kilometers.

    CAA MyPace has experienced strong interest, in excess of 300% since the onset of the pandemic, reflecting the changed nature of commuting – people are working from home and driving less.

    So what’s in it for brokers to sell UBI products?

    Over the past year, some drivers have adjusted their policies by lowering mileage and changing vehicle usage to pleasure only, among other updates to lower their costs. Never has there been a better time for customers to consider UBI programs, because customers can take full advantage of potential savings. This gives drivers the flexibility of choice they demand, and control over their insurance premium. As their broker, you demonstrate care by working with them on their coverage, customizing it to meet their needs. When people save on their insurance, there’s less of a chance of them shopping on renewal. And, with this satisfaction comes loyalty, retention, possible referrals, the list goes on. The customer wins, and so does the broker.

    There are some nuances about UBI that differ from the traditional auto policy, and vary by insurer, which can make it challenging to explain to customers. But think about the ‘black box’ of underwriting. Every insurer has their own ‘secret sauce’ on how they determine rate. Most have adopted individualized rating which has created even more confusion and ambiguity. How easy is it to explain to your customers what factors are used to determine their premium? A lot more challenging than in the past.

    But with UBI, there are elements that can be quite easily explained. Variables used to determine rating differ by insurer.  With CAA Insurance there is no additional cost to switch to our CAA MyPace payment plan. And should driving habits ever revert to normal commuting distances, there is no penalty to switch back to a traditional auto policy. It’s simple – you pay for the distance you drive.

    In terms of our CAA Connect program, explaining what can impact savings is also straightforward:

    • Drive less, save more
    • Driving at certain times during the day can impact your premium
    • Things like hard braking, speeding and quick acceleration will lower your discount
    • We will never surcharge for observed occurrences – only adjust the discount being offered

    Customers can monitor driving events through our app or our web portal, and know precisely what is contributing to their savings. They can take control of their costs by making positive changes to their driving behavior, which can lead to greater savings.

    The use of telematics continues to evolve, particularly with recent regulatory changes in Ontario signifying that insurers can begin to charge premium for observed poor driving behaviour (previously, insurers could only provide discounts through UBI programs). Looking ahead, this evolution speaks to the fact that UBI is here to stay.

     

  • Why invest in the health and wellness of my team?

    Why invest in the health and wellness of my team?

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    This past year has tested everyone’s resilience, positivity, patience and productivity. Most have had to work differently – at home, balancing the kids, home cooking and virtual meetings. It is understandable that some people’s overall wellness may have suffered. Gyms are closed and we no longer have the walk across the office to get that next cup of coffee.

    Resiliency is our ability to bounce back or recover from difficulties. Over the past year everyone has faced a tremendous amount of change, and we needed to cope with that change in order to be successful. This highlighted the importance of a balanced and healthy lifestyle, along with the challenge of keeping staff engaged and productive.

    That’s why investing in a Wellness program can be a solution – not just for your employee welfare, but for your ROI.

    Why? Because:

    These are older statistics which have likely been exacerbated by the pandemic. Regardless, they present a strong argument that organizations should invest in wellness initiatives for their staff.

    CAA has prioritized the wellness of its associates for a number of years, as we recognize that keeping people healthy, well and engaged contributes to productivity. Through various wellness initiatives, we offer staff outlets and opportunities to improve their health and stability, such as:

    • Resources on nutrition, physical health, mental health, financial health, sleep and hygiene, including contacts to professionals in each field through an Employee Assistance Program (EAP), telemedicine and internet-based cognitive behavioral therapy (ICBT).
    • Engaging staff through an app, where they can log physical activity and participate in fun challenges.
    • Live stretch and meditation sessions.
    • Fitness classes during and outside of work hours.
    • Activities such as painting and cooking, which can reduce stress and give staff a sense of belonging and an opportunity for fun with their colleagues.
    • Live sessions with professional chefs, nutritionists, naturopaths and heart and stroke experts.

    While many of these initiatives come with a price tag, others involve minimal investment.

    Beginning a Wellness program doesn’t need to be daunting. Here are some steps to help get things started:

    • Start at the top. A successful program begins with a commitment from company leaders, and then through all levels of the organization. Make it part of your company’s purpose and vision.
    • Create the culture. Integrate health and wellness into all aspects of your business, by offering support with career development, emotional and physical well-being. Establish a healthy work environment by:
      • When working remotely, offer flexibility and time for people to get up and move. Engage in virtual meetings that are not about work. Provide healthy resources such as nutrient-rich recipes and physical activity regime guides.
      • When at the office, offer healthy food options (if you have a cafeteria). Look for trails around your location and encourage staff to enjoy them – consider a friendly competition for the most steps taken in a given period of time.
    • Pool your resources. Leverage your employees to create an internal wellness committee, comprised of people from all levels in the organization who can offer different perspectives. Give them a budget to use to create initiatives to support their colleagues. Conducting surveys can also provide good insight, along with conversations with individuals to provide a clear direction on the programs required to support their needs. By responding to employee input, you will see greater buy-in to the program.
    • Communicate. Offer clear messages about the program, with details of what’s in it for staff and ways to participate. The reason some wellness initiatives can fail is lack of awareness and even suspicion about the company’s intentions.
    • Measure success (and failures). Analyze what’s working and what’s not working. What are people participating in, and how can it evolve to increase engagement. Perform pulse checks with staff to learn what they want more of. Don’t forget to review your ROI too – has absenteeism decreased, have benefit costs changed, etc.

    Taking the initiative, effort and budget to invest in the health and well-being of your staff can lead to improved morale, loyalty and retention, and increased talent attraction. All of this leads to boosted productivity and heightened customer satisfaction. The benefits are significant, and will have a positive impact on your employees, and your company, for the long term.