The corporate travel insurance sector is experiencing growth as brokers capitalize on the increasing complexity of risks facing business travelers. Underwriting agencies are reporting a surge in broker opportunities in this space, driven by geopolitical volatility and the need for adaptable insurance covers.
Growing Demand for Customized Travel Insurance
Andrew Batchelar, CEO of Batch Underwriting, notes that corporate travel has rebounded since the COVID-19 pandemic, but the landscape has changed significantly. “The risks are more complex and businesses are more conscious of their responsibilities,” he said. This has created a niche for brokers to act as trusted advisers, providing customized travel insurance solutions that go beyond standard off-the-shelf policies.
Batchelar’s firm is seeing increased traction among various broker partners, including those who haven’t traditionally offered travel insurance. Sectors such as resources, professional services, engineering, and logistics are showing strong demand, as they require adaptable covers for their business travelers.
Evolving Risks in Corporate Travel
The risks faced by corporate travelers have become more diverse and complex. Standard risks such as medical expenses, trip cancellation, and lost baggage are now accompanied by less predictable issues like political instability and security concerns leading to evacuations. Newer, adaptable travel insurance offerings are addressing these challenges by covering additional aspects such as replacing key staff mid-trip and providing management support services.
Service as a Key Differentiator for Brokers
Batchelar emphasizes that service is a crucial differentiator for brokers in the corporate travel insurance market. To capitalize on the growing opportunities, brokers need to offer fast turnaround times, clear advice, and policy structures that reflect their clients’ actual operations. When done well, corporate travel insurance can be a high-value, low-maintenance business that deepens client relationships and opens doors to broader insurance placements.
Other underwriting agencies have also identified this trend. Michelle McKellar from Keystone Underwriting Australia notes that travel insurance is a natural extension of existing broker offerings to SME clients, adding value to their services and creating new revenue streams.
Business Travel on the Rise
Recent data suggests that business travel numbers are steady or increasing, despite a decline in leisure travel. The Australian Bureau of Statistics reported a 10% increase in overseas trips by Australian residents in March, with 66,800 of those trips being for business purposes. This uptick in business travel is expected to continue driving demand for corporate travel insurance.
