Reality check: Traveling in 2024 isn’t for the faint of heart. From climate change chaos to health scares and even soaring crime rates in tourist hotspots, we face risks like never before. It’s wild out there! Avid adventurers know that travel insurance is a must, but let’s be honest — traditional insurance feels outdated. Confusing fine print, frustrating claims processes—they’re not built for today’s explorers. It’s time for travel insurance to catch up with the times.

Klook, Asia’s leading platform for experiences and travel services, conducted research through Klook Protect, its first travel insurance arm. Exploring consumer attitudes, behaviors, and lifestyles impacting travel insurance today, “Travel Troubles Beyond Lost Luggage 2024” looks into the gaps and dynamic protection needs of Millennial and Gen Z travelers who are often exposed to higher risk than previous generations.

Here are interesting key findings from the study:

Traditional travel insurance is outdated

According to Klook Protect research, traditional travel insurance doesn’t meet the needs of modern travelers, especially Millennials and Gen Z. Some of their concerns include difficulties in making claims, understanding policy coverage, and complex claim processes that take too much time and effort. Traditional travel insurance doesn’t even meet the basic preferences of these generations that prioritize convenience and flexibility.

Klook Protect’s study also found that 75% of travelers 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 travelers highlighting difficulty in making claims. At the same time, the Philippines has a whopping 40% of travelers who are more value-conscious, ranking price as the top reason.

Millennials and Gen Z need better protection

The study found that 48% of travelers under 35 are often drawn to adventure travel and exposed to more risk during vacation. Extreme sports, off-the-beaten-path destinations, and physically demanding experiences are, after all, attractive activities for the youth.

Millennials and Gen Z also take multiple leisure trips yearly, prioritizing budget travel. This means staying in less-regulated accommodations or transport options with lower safety standards.

For Chuan Sheng (C.S.) Soong, Chief Executive Officer of Klook Protect, these are exactly why traditional travel insurance should be modernized: “Travel insurance definitely needs to be modernized for a better traveling experience. Klook Protect is the world’s first travel insurance that ensures the good times for travelers, offering 100% refunds for activities that fall through due to bad weather conditions or if travelers 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”.

Most travelers are unmotivated to buy travel insurance

Think about it: when did you last prioritize buying travel insurance? Most travelers wait until the last minute to purchase insurance — it’s often the last to be ticked off on the travel checklist. Klook Protect found that Singaporeans (30%), Hong Kongers (36%), Malaysians (37%), and Filipinos (36%) buy coverage just days to a week before their trips. Why?

Complex insurance claims are one of the reasons.

“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,” said C.S. Soong.

Klook Protect’s smarter approach to travel insurance

To address this apparent gap in the market, Klook Protect offers modernized solutions to save the day. It covers unique scenarios like bad weather or unfulfilled experiences (e.g., no shark sightings during a whale shark dive), addresses new risks, and offers a seamless claims process.

With this new standard, travelers can make smarter choices that enrich their holiday experiences with insurance solutions that can understand and anticipate travel centered around fun activities and meaningful experiences.

Klook Protect’s ‘Travel Troubles Beyond Lost Luggage 2024’ White Paper can be accessed here.

Check us out on Facebook, Instagram, X, TikTok, and YouTube, to be the first to know about the latest news and coolest trends!