Insurance is often viewed as cluttered, complicated and verbose. Very often, clients sign insurance contracts without understanding what they’re buying into and completely disregarding the small print.

Travel insurance, like many other industry sectors, is one such area that has widely been deemed complicated and confusing. As such, there is a distinct insurance protection gap, especially among younger travellers who often choose to gamble without insurance coverage.

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However, the insurance broker can play a hugely important role in demystifying the travel insurance industry for insureds. Too many people assume they’re covered when they’re not, and this is something that needs to be changed, according to Stacey Hughes-Brooks, head of travel at RBC Insurance.

“A lot of travellers assume they have coverage through credit card coverage or a group plan, so they dismiss the idea of buying supplementary travel insurance,” Hughes-Brooks told Insurance Business. “Clients often make these big assumptions without doing their homework or making the necessary phone calls to ensure their coverage meets their needs.

“The gap, in summary, is that many people don’t really understand what existing coverage they have and what coverage they need before travelling. There needs to be a widespread education campaign through travel insurance committees, associations and possibly even some government advisories.”

RBC Insurance recently launched a new mobile app called PATH, which aids travel insurance customers in need of emergency medical assistance. Digitized solutions like PATH are growing in popularity in the Canadian market and can be an effective tool for brokers as the travel insurance industry attempts to meet clients’ increased demands for simplicity.

“At RBC we do the best we possibly can to continue educating consumers around the possible risks and what can happen if travellers are not adequately covered,” said Hughes-Brooks. “It is vital for insurance companies and brokers to promote that customers take the time to investigate their travel insurance coverage before leaving the country, or even their home province.”



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