Travel insurance isn’t what it used to be – thankfully, it’s better. With embedded travel insurance, users can now purchase a trip knowing that they’ll be covered if their trip is cancelled or if they need medical assistance abroad.

This is a step up from having to comb through comparison websites in order to purchase the best insurance package for an upcoming trip. 

Embedding travel insurance into credit cards and premium accounts isn’t necessarily new, but coverage has typically been limited to lost luggage or rental car fees. In an era where users expect connected experiences and fintechs have super app ambitions, it makes sense to provide travellers with the comprehensive coverage they need, without them having to even think about it.

For financial services providers, offering travel insurance is quickly becoming a must-have to stand out in a crowded market and meet consumer needs.

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Endless travel disruptions & desire for travel experiences calls for embedded protection

Most of us have at least one travel horror story that we like to tell at dinner parties (mine is the time the airline managed to lose my carry-on at the gate).

In 2023 alone, 21.8% of flights were affected by delays, cancellations, or diversions. This comes on the heels of the Covid pandemic, which made people more wary of disruptions and health complications while travelling abroad, reflecting broader changes in how we travel now.

Travel insurance gives people that added peace of mind. But when planning a trip alone involves navigating a maze of online resources and social platforms, wouldn't travellers prefer one less thing to plan? I know I would.

Embedded travel insurance simplifies the travel planning process, so as long as users book a trip with your bank’s card or account, they'll be automatically covered. And for younger generations, who tend to value experiences like travel over material purchases – Gen Z make an average of three leisure trips every year – this seamless integration is especially appealing.

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Why banks and fintechs are well-positioned to offer travel insurance

Banks and fintechs have a golden opportunity to address modern travel challenges by embedding travel insurance into their offerings. Today's tech-savvy travellers expect convenience, and bundling insurance with financial products meets this demand head-on. 

Not only that, but working with the right insurance provider to tailor the coverage to your user base means that you can directly address their concerns.

Generally speaking, the top three concerns for travellers in 2024 are medical emergencies (59.8%), needing to cancel a trip for an unforeseen reason (31.2%) and lengthy travel delays (5.7%)

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Revolut’s top-tier Ultra plan comes with cancel for any reason insurance, which means that travellers can get reimbursed up to 100% of non-refundable costs if they cancel their trip for any number of reasons, and 70% of costs for any other reason. That, combined with everyday protection offered in their other paid accounts, ensures that users are getting more out of their subscription plan. With 50 million subscribers under their belt, there’s a reason Revolut is one of the fastest growing banking apps on the planet.

With truly flexible travel protection, it’s about more than just ticking a box. It’s about enriching the customer experience and turning your bank or fintech into a one-stop solution for all their needs. This integration can transform your basic accounts into premium offerings, making your products more attractive in a highly competitive market. 

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The 7 most popular insurance products for neobanks → 

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The perks of bundling travel insurance with financial services

Embedded travel insurance offers a treasure trove of benefits for financial institutions. For one, it enhances the appeal of your products, making them more attractive to potential customers. This is especially true as more banking providers expand their offerings beyond basic services and move towards comprehensive packages.

Not only does it attract new customers, but it also encourages existing ones to upgrade to premium accounts. In a survey by Business Insider, 68% of people said they would be willing to pay some amount for travel insurance. If quality travel coverage is included in paid accounts, this could lead to increased revenue and boost overall user engagement.

In addition, embedded travel insurance can significantly improve customer loyalty. When users feel that their bank understands and meets their needs, they are more likely to stay. This loyalty is further cemented when the bank offers solutions that simplify stressful aspects of travel, such as insurance coverage.

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Why embedded insurance is still better than bancassurance →

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To ensure the best experience for your users, make sure they can easily access coverage details – and understand them – through your platform, whether that’s your app or website. By providing clear and comprehensive coverage information, banks build trust and ensure that their customers feel secure and informed. For example, Revolut has an ‘Insurance’ section within the user hub on their app, which gives users both an overview of their coverage and specific documents if needed.

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You can also offer different levels of coverage in your various accounts, so travellers can choose the subscription plan that works best for them.

But the real user experience test in travel insurance is when something goes wrong.

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The real differentiator: streamlining the claims process for a better user experience

One of the biggest annoyances with travel insurance is the tedious claims process. Going back to my lost carry-on story, I remember having to wade through the not-so-straightforward websites of my airline and dinosaur of a credit card company – which only made an annoying experience even more frustrating. 

Modern banking doesn’t have to be this way. Imagine if I could open my bank’s app and file a claim in just a few clicks. By integrating a user-friendly claims interface into your platform, you can significantly cut down the time it takes to file a claim and receive reimbursement.

For example, you can connect your platform to an insurance claims API to pre-fill the form with my customer data, reducing the burden on me (especially when all I wanted to do was go out and enjoy my vacation).

Take Dutch neobank bunq. With their travel insurance, if users have an issue during their trip, they can click on the ‘Travel’ tab on their app, click on ‘you’re protected’ and easily file a claim for reimbursement.

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With the right claims handler, automated systems can validate and even pay claims faster so that customers receive prompt payouts without endless back-and-forth communication. This AI-driven approach eliminates much of the red tape traditionally associated with claims and makes the entire process more customer-centric.

And if you really want to go the extra mile, you can send push notifications with real-time updates on the claim status to keep customers informed every step of the way.

By making the claims process as seamless and hassle-free as possible, you can not only enhance the user experience but also build stronger, more reliable relationships with your customers.

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Conclusion: embedded travel insurance for modern bank users

The financial sector is rapidly expanding beyond traditional banking services, and embedded travel insurance is fast-growing in how banks and fintechs can meet customer needs.

By seamlessly incorporating travel cover into their products, financial institutions can offer a comprehensive service that not only appeals to the tech-savvy, spontaneous travellers of today but also sets a new standard for customer convenience and satisfaction.

The shift towards embedding travel insurance into paid accounts and payment cards reflects a broader trend of integrating essential services into a single, user-friendly platform – benefiting both customers and ultimately financial institutions.

In order to make the experience as customer-centric as possible – from tailored coverage to speedy claims to performance data to track how your insurance program is doing – you need the right embedded insurance partner.

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At Qover, we’re already helping financial services companies and neobanks like Revolut, bunq, Lydia, Qonto and Yonder do just that. Get in touch with us to see how we can orchestrate more meaningful insurance experiences for your users.

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