New travel insurance model empowers brokers

Coming out of the COVID-19 pandemic, Canadians embarked on what was referred to as “revenge travel” – pent-up demand that drove an aggressive spike in people wanting to get away. Despite recent economic headwinds that may have been expected to put a damper on plans, travel remains a top priority for Canadians post-pandemic. And what this surge highlighted was a need for revolutionized travel insurance. “I’ve always looked at the way travel insurance was sold as inherently flawed,” says Chris Van Kooten, chief executive officer at Allianz Global Assistance (Allianz). “It shouldn’t be shaped to fit where the insurance company wants it, but how consumers need it to behave and work.”

In April, Allianz partnered with Ipsos to conduct a Summer Vacation Confidence Study and found that three in five Canadians are confident they’ll take summer vacation this year, and one in five is very confident. The majority of Canadians (72 percent) say summer vacations are important to them, with households anticipating spending an average of $2,728 – or $3,519 for those with children – making the most of the summer months. Most Canadians report travelling for leisure to get some much-needed R&R (65 percent), while 46 percent will use their time off to visit family and friends. Thirty percent are characterized by Allianz as “hyper travellers,” who plan to make more than one trip over the summer. Well known for winter travel – such as Snowbirds heading to Florida for the cold months – Canadians’ preferred vacation timing is shifting to year-round, and their vacation scope is also expanding. “People want adventure and they’re exploring more non-traditional places,” says Kyle Sparkman, chief sales officer at Allianz, such as smaller cities across Europe, for example. “People want to see the world and experience different places, cultures, cuisine,” he adds. “It’s almost a new concept: it’s not revenge anymore, but how people are choosing to travel now.” But far-flung islands and remote locations come with more inherent risk, such as language barriers or uncertainty as to where the nearest hospital is, and Sparkman’s previous experience on the operations side of the table has armed him with stories about the broken leg in Las Vegas, the premature baby in the UK, and the medical emergency in the Italian countryside. “Travellers need to be prepared – and though it didn’t deter travel for long, the pandemic did shine a light on the importance of having travel insurance,” notes Roger Marcelo, vice president of business development at Allianz. As more educated consumers, Canadians want to guard against the unpredictability of being outside of their home country and are more aware that coverage under credit cards or through employer benefits is often not as comprehensive as one might expect. “Travel insurance is no longer something to consider as an afterthought,” Marcelo says, stressing that for brokers, the strength of the travel insurance industry presents an equally strong opportunity. “As a trusted advisor, brokers build credibility with their clients when they bring up travel insurance because you know they’re travelling,” he adds. “You can look after every possible need of the insured in terms of living out their lives with peace of mind.”

Allianz partnered with behavioural economics experts on design and sales flow, leveraging insights into customers’ decision-making process when considering travel insurance. This was to ensure that “we don’t make our problems the customer’s problems,” says Sparkman, adding that Allianz did away with industry-standard boxes and conditions that made things more difficult for brokers and the end user. This streamlined approach is convenient for both customer and broker, mirroring broker operations that are geared toward annual events like home and auto policies. It’s optimized to convert single-trip customers to annual policyholders, and activating the auto-renew feature also allows customers to buy once and have ongoing coverage while also working to build compounding revenue and ongoing retention for the broker. Overall, it’s capable of dramatically increasing revenues for brokers and potentially transforming the industry as a whole. “This product is designed for brokers to sell,” Sparkman says. “It’s a good lead generator for core business, a good cross-selling opportunity to expand business, and spending those extra five minutes could change somebody’s life when they need it in future.” Offering up to $10,000,000 in emergency medical coverage, including emergency medical transportation, up to $5,000 in dental coverage, and up to $5,000 for return of a vehicle or watercraft, the Annual Medical Flex Plan provides the protection Canadians need as they pursue their vacation destinations – and brokers are increasingly understanding the value.

Marcelo notes that broker feedback is overwhelmingly positive. They recognize the product was created to combat the challenge of investing the time to quote and sell the traditional model of coverage – “Brokers look for the path of less resistance, so we’re making it less resistant,” he says – and Allianz is committed to supporting brokers through adaptation. From training sessions to in-person events to webinars, Allianz is always reachable, and if there’s any confusion about the benefits of the product or how it works, the team is happy to go back and review as many times as it takes.

“We believe in what we offer and we’re starting to see momentum here,” Marcelo says. “We’re out there changing broker mindsets – and now it’s their turn to do the same with the buying public.” And Allianz isn’t done yet: they will continue to improve the Annual Medical Flex Plan, ensuring it meets the needs of all stakeholders. Van Kooten calls that a win-win-win, for the customer, the broker, and the industry. “There’s a bigger opportunity than what’s been realized so far for insurance intermediaries to be involved in the distribution of travel insurance in a greater, more meaningful way than in the past,” Van Kooten says. “All our efforts are geared toward providing a product that empowers an influential force in insurance – our brokers – to go out and sell products because their customers need them.”

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In recognition of a long-standing need for reform, and driven by evolving insurance needs, Allianz developed a first-of-its-kind annual travel insurance plan. Launched earlier this year, it’s a flexible, affordable, and appealing insurance option meant to reflect Canadians’ unique and changing travel needs. It also aligns with how brokers do business, hitting both of Allianz’s strategic goals. “We’ve been on two journeys: one, to make a product that’s easier for brokers to sell, and two, to make a product customers want and need,” says Van Kooten. “The Annual Medical Flex Plan is intuitive. It was developed to fit with people’s lifestyles and how their travel habits actually work. We want to get to a place where we’re eliminating the potential to forget to buy travel insurance, which is intensely important.” Instead of a trip-by-trip basis, Allianz’s product offers coverage for the total number of planned travel days outside of Canada within one year. Travellers have the flexibility to use those days across trips of varying lengths with no per-trip limit: essentially, it provides a “bank” of days that they can draw on as needed.

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. Allianz Global Assistance is a specialist brand of Allianz Partners. For more information, visit the Allianz Global Assistance Canada website.

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10 million Canadians

SERVING OVER

35 years

SERVING CANADIANS AND VISITORS FOR OVER

women

60% of managers are

Cambridge, Ontario

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590k calls answered 40k travel assistance cases 400k claims processed

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“I’ve always looked at the way travel insurance was sold as inherently flawed. It shouldn’t be shaped to fit where the insurance company wants it, but how consumers need it to behave and work”

CHRIS VAN KOOTEN,ALLIANZ GLOBAL ASSISTANCE

“This product is designed for brokers to sell. It’s a good lead generator for core business, a good cross-selling opportunity to expand business, and spending those extra five minutes could change somebody’s life when they need it in future”

Kyle Sparkman, Allianz Global Assistance

New travel insurance model empowers brokers

Karen Adams has had a remarkable journey to her current role as CEO of Fundserv. Originally from Toronto, Adams earned a bachelor’s degree in mathematics and economics at Queens University, followed by an MBA in international finance at the University of British Columbia. After graduating, she set off across the globe, holding various positions with HSBC that took her to London, Dubai, Hong Kong, Beijing, Shanghai, Seoul and Mumbai. That global experience gave Adams a unique perspective, prompting her to develop a leadership style that’s based on developing relationships with each individual, listening and understanding to help them reach their potential. That approach goes well beyond her own team, allowing Fundserv to succeed in creating solutions for its members. “Having worked in many different countries, people ask if I am an expert in multicultural leadership,” Adams says. “I always say there is no such thing because that assumes you manage people based on their background. I have learned that people all want the same things: to develop our careers, give our kids a good future, etc. When she returned to Canada learned that people all

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Karen Adams

Before becoming CEO of Fundserv, Karen Adams held a variety of leadership roles around the world – and she learned that listening and understanding are key to both providing service and developing talent

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New travel insurance model empowers brokers

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A documented shift in travel patterns

Allianz is there to support brokers in new opportunity

Published June 24, 2024

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Kyle Sparkman

Roger Marcelo

Chris Van Kooten

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Allianz Global Assistance's Annual Medical Flex Plan revolutionizes travel insurance, offering brokers a flexible, intuitive product that aligns with clients' evolving travel needs, boosting business opportunities and ensuring comprehensive coverage year-round

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“We believe in what we offer and we’re starting to see momentum here. We’re out there changing broker mindsets – and now it’s their turn to do the same with the buying public”

Roger Marcelo,Allianz Global Assistance

A documented shift in travel patterns

In April, Allianz partnered with Ipsos to conduct a Summer Vacation Confidence Study and found that three in five Canadians are confident they’ll take summer vacation this year, and one in five is very confident. The majority of Canadians (72 percent) say summer vacations are important to them, with households anticipating spending an average of $2,728 – or $3,519 for those with children – making the most of the summer months. Most Canadians report travelling for leisure to get some much-needed R&R (65 percent), while 46 percent will use their time off to visit family and friends. Thirty percent are characterized by Allianz as “hyper travellers” who plan to make more than one trip over the summer. Well known for winter travel – such as Snowbirds heading to Florida for the cold months – Canadians’ preferred vacation timing is shifting to year-round, and their vacation scope is also expanding. “People want adventure and they’re exploring more non-traditional places,” says Kyle Sparkman, chief sales officer at Allianz, such as smaller cities across Europe, for example. “People want to see the world and experience different places, cultures, cuisine,” he adds. “It’s almost a new concept: it’s not revenge anymore, but how people are choosing to travel now.” But far-flung islands and remote locations come with more inherent risk, such as language barriers or uncertainty as to where the nearest hospital is, and Sparkman’s previous experience on the operations side of the table has armed him with stories about the broken leg in Las Vegas, the premature baby in the UK, and the medical emergency in the Italian countryside. “Travellers need to be prepared – and though it didn’t deter travel for long, the pandemic did shine a light on the importance of having travel insurance,” notes Roger Marcelo, vice president of business development at Allianz. As more educated consumers, Canadians want to guard against the unpredictability of being outside of their home country and are more aware that coverage under credit cards or through employer benefits is often not as comprehensive as one might expect. “Travel insurance is no longer something to consider as an afterthought,” Marcelo says, stressing that for brokers, the strength of the travel insurance industry presents an equally strong opportunity. “As a trusted advisor, brokers build credibility with their clients when they bring up travel insurance because you know they’re travelling,” he adds. “You can look after every possible need of the insured in terms of living out their lives with peace of mind.”

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Annual Medical Flex Plan a boom for broker business

Chris Van Kooten Chief executive officer

Southern Europe and cycling in beautiful (mountainous) locations

IDEAL VACATION

Has held several leadership roles at The Co-operators General Insurance Company, Economical/Sonnet Insurance , and Guy Carpenter Canada

CAREER MILESTONES

Kyle Sparkman Chief sales officer

Revolutionized Allianz Global Assistance operations with customer-focused applications to empower customers and our staff - guided care, medical assistance response system, and a modernized claims portal

CAREER MILESTONES

Just as happy on a beach with a book as touring museums and churches in Europe or seeing lions and great white sharks in South Africa

IDEAL VACATION

Roger Marcelo Vice president of business development

RSA Platinum Winner 2005 – chosen by executive team for high performance

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Anywhere far away

IDEAL VACATION

For more information about Allianz’s Annual Medical Flex Plan and offering travel insurance to your clients, contact Allianz today.

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Roger Marcelo

Kyle Sparkman

Chris Van Kooten

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Karen Adams

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20+ years

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Build trust through credibility and follow up

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30 years

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Build your brand and be memorable

CORE VALUE ADVICE

30+ years

YEARS IN INDUSTRY

Roger Marcelo Vice president of business development

RSA Platinum Winner 2005 – chosen by executive team for high performance

CAREER MILESTONES

Anywhere far away

IDEAL VACATION

Kyle Sparkman Chief sales officer

CAREER MILESTONES

Just as happy on a beach with a book as touring museums and churches in Europe or seeing lions and great white sharks in South Africa

IDEAL VACATION

Chris Van Kooten Chief executive officer

Has held several leadership roles at The Co-operators General Insurance Company, Economical/Sonnet Insurance , and Guy Carpenter Canada

CAREER MILESTONES

Southern Europe and cycling in beautiful (mountainous) locations

IDEAL VACATION

Allianz Global Assistance partners