Travel Insurance Discounts are an interesting concept in the world of travel medical insurance. The type of discounts being offered by respective insurance companies might provide insight into the credibility of the insurance provider. Some insurance companies will merely use discounts as a ploy to attract unsuspecting potential clients; while other, more reputable, companies will use discounts as a basis to support their price/coverage models.
An example of a travel insurance discount that has little to do with proper coverage is a companion discount, or a discount offered for online transactions.
When establishing a risk profile for a traveller, one that is based on medical conditions, the method of purchase and a discount thereon, is irrelevant. Where such discounts exist, this may be a clear indication that the insurance provider knows very little about what is actually at risk, and may not be able to handle complex medical emergencies, should any arise.
Same goes with companion discounts. Travelling with a companion has little impact on the medical condition of another. 50% of the Canadian population is married (75-80% of the snowbird market) and will travel with a companion/spouse. One might argue that since a traveller has a companion that in the event of a medical emergency someone is available to act on the insured's behalf. Traveller's typically travel to destinations where there are plenty of people, which mutes this case.
Now, reputable travel insurance companies that provide loyalty or claim free discounts seem to understand the risks involved in properly insuring travellers for emergent medical/health conditions. Discounts offered for loyalty are geared toward a class of individual that is more cautious and conscientious - someone who is more dedicated, whether toward an organization or their health.
Claim Free Discounts are geared toward those individuals that are healthy and or do not make frivolous travel insurance claims. Travel insurance truly is exists to mitigate the financial risks of having a major medical incident while travelling, rather than minor check-ups. Clients that recognize this fact are more apt not to make travel insurance claims, and therefore are offered a discount on the insurance policy based on the number of years they have gone without an insurance claim. This model has existed for years in other insurance industries, and has been successfully been implemented into only a few travelinsurance plans.
An example of a travel insurance discount that has little to do with proper coverage is a companion discount, or a discount offered for online transactions.
When establishing a risk profile for a traveller, one that is based on medical conditions, the method of purchase and a discount thereon, is irrelevant. Where such discounts exist, this may be a clear indication that the insurance provider knows very little about what is actually at risk, and may not be able to handle complex medical emergencies, should any arise.
Same goes with companion discounts. Travelling with a companion has little impact on the medical condition of another. 50% of the Canadian population is married (75-80% of the snowbird market) and will travel with a companion/spouse. One might argue that since a traveller has a companion that in the event of a medical emergency someone is available to act on the insured's behalf. Traveller's typically travel to destinations where there are plenty of people, which mutes this case.
Now, reputable travel insurance companies that provide loyalty or claim free discounts seem to understand the risks involved in properly insuring travellers for emergent medical/health conditions. Discounts offered for loyalty are geared toward a class of individual that is more cautious and conscientious - someone who is more dedicated, whether toward an organization or their health.
Claim Free Discounts are geared toward those individuals that are healthy and or do not make frivolous travel insurance claims. Travel insurance truly is exists to mitigate the financial risks of having a major medical incident while travelling, rather than minor check-ups. Clients that recognize this fact are more apt not to make travel insurance claims, and therefore are offered a discount on the insurance policy based on the number of years they have gone without an insurance claim. This model has existed for years in other insurance industries, and has been successfully been implemented into only a few travelinsurance plans.
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