Nomadic seniors are on the rise

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Seniors are travelling differently, which means their travel insurance needs to keep up. How can brokers better support these so-called nomadic seniors?

YOU MAY have heard of the “snowbird”: older Canadians from colder northern climates travelling to warmer southern locales and staying between 30 days and six months. But there’s a new type of traveller that’s more adventurous and nomadic. This rapidly growing segment skews slightly younger and is more active, taking multiple trips a year. Their travel insurance needs are also different from the traditional snowbird, according to leading travel insurance provider Allianz Global Assistance (Allianz), which has senior travellers as part of a broader strategy to develop flexible travel insurance products and equip brokers to serve the market more effectively.

For over 35 years, Allianz Global Assistance has supported travelling Canadians and visitors when they need it most with value-added travel insurance and assistance services. We bring our passion for assisting people to life every day through our partnerships with well-known brands in the broker, travel, and financial services markets. For more information, visit Allianz Global Assistance Canada.

“Our research confirmed that the traditional snowbird segment does exist and needs to be served, but we also identified a new group we call ‘nomadic seniors’”

Chris Van Kooten, Allianz Global Assistance

“When you think of a snowbird, you picture older individuals who primarily travel to the US and stay for up to six months, enjoying the beach and relaxing in the sun,” said Chris Van Kooten, chief executive officer at Allianz Global Assistance. “Our research confirmed that the traditional snowbird segment does exist and needs to be served, but we also identified a new group we call ‘nomadic seniors.’”

Allianz conducted a study, in partnership with research firm Advanis in November 2023, to better understand Canadian seniors’ travel habits and travel insurance needs. These are the key findings from the survey:

Unlike traditional snowbirds who prefer to stay in one location for extended periods, nomadic seniors want to explore more distant and adventurous destinations, engage in activities like hiking or sports, and visit far-flung parts of the globe. Rather than staying in one place for six months, this segment is taking a higher number of more frequent, shorter trips – often from a few weeks to a month – throughout the year. They are embracing the freedom to travel frequently and, more importantly, they value being protected. The research findings were the catalyst for Allianz to find solutions that would better meet the needs of these active, globe-trotting retirees. “We thought they might need something a little bit different,” Van Kooten said, noting that this segment was not well served by travel insurance products currently in the market.

“Our goal is to have brokers actively advising and educating clients on the coverage they need when travelling”

Chris Van Kooten, Allianz Global Assistance

Traditional travel coverage for snowbirds is typically designed for a single trip of a longer duration. It also tends to be more expensive because it covers a higher-risk group. But this pricing structure doesn’t work as well for nomadic seniors, who are generally healthier and less likely to need extensive medical coverage. “They end up paying a lot more for that coverage because they get lumped into a group that is essentially less healthy or has a bigger exposure to risk,” Van Kooten pointed out. To better serve the growing segment, Allianz has expanded its existing Annual Medical Flex Plan, the first annual travel protection plan of its kind. Launched earlier this year, the innovative plan delivers an annual travel insurance option that is much more flexible, affordable, and appealing for customers while being easier for brokers to explain and sell.

The Annual Medical Flex Plan now includes 75- and 90-day plans – ideal for travellers who are more frequently on the move and need more days of coverage for multiple trips. “This product caters to the nomadic segment, providing the flexibility they need for frequent travel, while traditional snowbirds may still prefer plans with longer limits, up to 180 days,” Van Kooten continued. The Annual Medical Flex plan also addresses a primary concern for older individuals regardless of their preferred style of travel: emergency health coverage. By providing shorter day limits but a total bucket of days, travellers get the emergency health coverage they need without paying the higher rates associated with traditional travel insurance. “When Canadians leave the country, they worry about health insurance and emergency medical coverage,” said Van Kooten. “The Annual Medical Flex Plan offers the same valuable benefits as our Emergency Medical Plan, for both younger and older travellers.”

Freedom to travel – how nomadic seniors are redefining travel insurance

Flexible, affordable travel and health coverage for nomadic travellers

Published 09 Sep 2024

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Who are nomadic seniors?

Flexible, affordable travel and health coverage for nomadic travellers

Most seniors (84%) travel abroad multiple times a year, and nearly half of them spend two months or more outside of Canada About four in five seniors (79%) purchase travel medical insurance for their trips 64% of seniors would prefer to purchase a multi-trip travel insurance plan than a single-trip plan

Retired (aged 55+)

Healthy and active

Frequent travellers (shorter, frequent trips versus staying in one place)

Tech-savvy

Need travel protection

The expanded options come at a perfect time as brokers prepare for the rush of the upcoming winter travel insurance season. Van Kooten acknowledged that brokers play a key role in the insurance-buying process, particularly for older populations who have traditionally relied on brokers for counsel on various types of coverage.

How can brokers offer the best solutions for nomadic seniors?

Allianz sees a significant opportunity for brokers to service this growing segment of older travellers, many of whom are taking multiple trips each year and may not be aware of the need for travel insurance, the CEO told Insurance Business. “Our goal is to have brokers actively advising and educating clients on the coverage they need when travelling,” said Van Kooten. “Providing solutions for older populations allows brokers to properly serve their full client base and ensure they have flexible and convenient coverage when they travel.” To make it easier for brokers to sell travel insurance, Allianz has simplified the medical questionnaire, streamlined the sales flow, and made the policy language simple. These changes are designed to encourage brokers to have conversations about travel insurance with their clients as part of their annual check-ins on other types of insurance, like home and auto. By streamlining this process, brokers will be more likely to cross-sell travel insurance alongside other products, ensuring that their clients are fully covered.

“Many people tend to forget about travel insurance, especially in Canada where we live close to the US border,” Van Kooten continued. “It’s common for people to drive across for the weekend without considering the coverage they need. Our flexible product addresses this by eliminating the need to worry about how many days are covered on each individual trip, offering greater flexibility and peace of mind.” Follow Allianz Global Assistance on LinkedIn and contact their sales team to learn more about offering travel insurance to your clients.

Travel insurance does not cover everything. Remuneration may be payable to the distributor of the insurance. For complete terms, conditions, limitations, and exclusions, please refer to the policy. Travel insurance is underwritten by CUMIS General Insurance Company, a member of The Co-operators group of companies and administered by Allianz Global Assistance. Allianz Global Assistance is a registered business name of AZGA Service Canada Inc. and AZGA Insurance Agency Canada Ltd. CUMIS General Insurance Company, P.O. Box 5065, 151 North Service Rd. Burlington, ON L7R 4C2, Canada, 1-800-263-9120, www.cumis.com.

“Brokers should be discussing travel insurance with their customers because people genuinely need this coverage,” said Van Kooten. “Our Annual Medical Flex Plan is tailored for those who take multiple trips a year, a category that nomadic seniors fall into, as they have the time and are travelling three to four times annually.” The flexible nature of the Annual Medical Flex Plan also means that travellers don’t need to worry about whether their coverage fits the specifics of each trip. Finally, travellers can pay for the coverage they require in a 12-month period, making it an affordable purchase.

Primary destinations for those aged 55+

32% Outside home province, within Canada

20% US

26% Mexico/Caribbean

12% Europe

11% Other international destinations

Source: Allianz's 2024 Vacation Confidence Study

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