Hong Kong Focuses on Coverage Report Released
Total Page：16
File Type：pdf, Size：1020Kb
ESSENTIAL READING FOR TRAVEL INSURANCE INDUSTRY PROFESSIONALS WWW.ITIJ.CO MAY 2013 • ISSUE 148 Consular conundrum Hong Kong focuses on coverage report released The Legislative Council of Hong Kong has been A research paper by Alex Oliver of the Australian questioning the government over travel insurance Lowy Institute for International Policy has sales practices, following an investigation into the investigated the problem of increasing numbers of potential mis-selling of policies to those who lost travellers asking the Department of Foreign Affairs their lives in the recent Luxor air balloon tragedy. and Trade (DFAT) for assistance abroad. Stefan Mandy Aitchison has the details Mohamed looks at the highlights of the report The government of Hong Kong has been answering The key fi nding of the report states: “Rising questions about various aspects of travel insurance sales, international travel, combined with changing traveller posed by Dr Hon. Elizabeth Quat of the Legislative demographics, activities and destinations, are Council. These included asking the government to increasing the burden and complexity of the consular inform the Council whether it had compiled statistics workload. Media attention on prominent cases on the current percentages of sales of travel insurance tempts politicians to override departmental protocols plans made through travel agents, banks, insurance and consular service charters to provide higher companies and other channels; and to share statistics levels of attention and service, bidding up the level on these sales if they are available. Furthermore, the of service Australians expect when they encounter Council wanted to know: “Whether [the government] trouble overseas.” DFAT’s resources, though, are will propose to the Hong Kong Federation of Insurers ‘stretched to the limit’, and the report suggests that a and the Travel Industry Council of Hong Kong to issue solution to the problem could be the introduction of guidelines to travel agents, requesting that when they a consular levy, which would be added either to the sell travel insurance to group tour participants, they cost of a new passport or an airline ticket. must provide insurance plans covering all activities on The problem of how to fund all the help being the itinerary (including self-pay activities) for participants offered to Australian tourists is not a simple one to to choose, but the sale of such travel insurance plans solve, although the report suggests different ways in must not be bundled up with the group tours; if it which it can be achieved, in addition to the consular will not, of the reasons for that.” The Council also levy: “At a minimum, government should allow DFAT wanted to know whether the authorities will ‘step up’ to retain the money it currently earns from notarial regulations for the sale of travel insurance in terms of services to supplement consular funding. As a quid policy explanations at the point of sale, whether or not pro quo for this funding boost, DFAT should examine guidelines would be offered to travel agents to remind its ageing structures and processes to enhance all them to tell group tours about travel insurance, and that of its operations, including its consular function.” such insurance must cover high-risk activities planned by It also recommends that efforts to manage public the group. The Council also wanted information about and media expectations about what kind of service intentions to strengthen consumer education so that the government can provide to tourists in need are customers better understand the product. improved upon and intensifi ed. In response to the questions, Professor KC Chan, Considering what has led to the increase in demand secretary for Financial Services and the Treasury, said for consular services, the report identifi ed cheaper that regarding statistics on the sale of travel insurance, airline tickets and a strong Australian dollar allowing insurance agents and brokers currently account for more people to travel. The profi le of the typical 64 per cent of sales, travel agencies account for Australian traveller has also changed – the number 28 per cent, and direct sales account for eight per of under 25s travelling has doubled in the past cent. Considering regulation, the statement from decade, and the number of tourists over the age Professor Chan said: “Given that individual travellers of 55 has trebled. The younger travellers get into may have different considerations (for example, more trouble, while older travellers come with their whether they will take part in certain activities on a higher likelihood of health problems. The popularity tour or whether they have continued on p.8 of adventure travel, coupled continued on p.6 REGULARS News continued: p.4 Insurance matters p.13 Features p.28 Editorial rant p.4 Travel matters p.18 Grapevine p.46 News Analysis p.10 Health matters p.22 Service directory p.39 Company brief p.12 IPMI news p.24 On the move p.47 WWW.ITIJ.CO NEWS ANALYSIS FEATURES Editor-in-chief: Ian Cameron Editor: Sarah Watson Title editor: Mandy Aitchison Sub-editor: James Paul Wallis Editorial assistant: Stefan Mohamed US correspondent: Milan Korcok Director of events: Denise Clements Production: Helen Watts Subscriptions: Kate Knowles Advertising sales: David Fitzpatrick & James Miller Finance: Elspeth Reid & Louise Goddard Design: Reducing customer V Creative Design churn p.32 vcreativedesign.co.uk ITIJ Happy go lucky? One of the great marketing Voyageur Buildings, 43 Colston St, Bristol BS1 5AX, UK p.10 paradoxes is that insurance companies often offer new Telephone: +44 (0)117 922 6600 Despite efforts by governments Keep in lane! customers a better deal than those editorial department: extension 3 and insurance providers, too But which one? p.28 who have been loyal customers for advertising department: extension 1 many people still go on holiday the last year or two. ITIJ explores subscriptions department: extension 209 without buying travel insurance. Is New Zealand’s government the how insurers should radically re- accounts department: extension 4 How can the industry and its only one that is taking the issue of think the rationale for their customer fax: +44 (0)117 929 2023 partners address an issue that will cross-border driving accidents and service spend – focussing on not go away? their causes seriously? customer effort and stopping churn email: [email protected] web: www.itij.co WOULD YOU LIKE TO SUBSCRIBE? www.itij.co/subscribe Mandy Aitchison Published on behalf of: Voyageur Publishing & Events Ltd, Editorial Comment Title Editor of ITIJ Voyageur Buildings, 43 Colston Street, Bristol BS1 5AX, UK The information contained in this publication has been published in good faith and every effort has been made to ensure its accuracy. Neither the publisher nor Voyageur Ltd can accept any responsibility for any error or misinterpretation. All liability As ever, the news pages of ITIJ contain reports me to wonder whether or not travel insurers It’s not often that travel insurers are given the for loss, disappointment, negligence or other damage caused by reliance on the that show millions of travellers are deciding are taking advantage of them as much as they opportunity in the national media to shout loud information contained in this publication, or in the event of bankruptcy or liquidation or cessation of the trade of any company, individual or fi rm mentioned is hereby against purchasing insurance to cover their trip. could – the ash cloud that covered European and proud about the amazing work the industry excluded. The views expressed do not necessarily refl ect those of the publisher. At the same time, a study published by the Lowy airspace was an almost unmitigated PR disaster does on a daily basis – when such opportunities Institute in Australia has found that Aussie tourists for the industry, instead of the fantastic example are offered, they should be grabbed with both Printed by Pensord Press, South Wales, United Kingdom are making more demands of their consular it could have shown by stepping up coverage on hands! It will be interesting to see what happens Copyright © Voyageur Publishing 2013. Materials in this publication staff, explaining in no uncertain terms that such an ex-gratia basis. The hot air balloon crash in next time disrupted travels hit the headlines – may not be reproduced in any form without permission demands are unsustainable given the resources Luxor, where some of the tourists from Hong who has learnt from their mistakes? available. This, I believe, presents an opportunity Kong were not covered for the activity they I hope you enjoy this issue of ITIJ, and I’m INTERNATIONAL TRAVEL INSURANCE JOURNAL ISSN 1743-1522 for travel insurers in Australia to extol the virtues were undertaking, presented another chance for looking forward to ITIC Brighton, where Would you like to make a comment? of the extensive and important benefi ts offered a voice in the industry to speak up about how lucky delegates get to see me on stage asking by their products. important it is for travellers to check their policy some pointed questions of our industry Please contact the editorial desk: Such opportunities come often enough for ts and cs for just such activities. professionals! Gulp. [email protected] - or call us: +44 (0) 1179 226600 - ext. 3 www.itij.co 4 NEWS ASTA finds BMO study shows uneven insurance lacking laws Canadian insurance company BMO has found that although 25 per cent of Canadians report needing expensive medical attention while abroad, only 41 per cent News that the Australian consular service is purchase travel insurance on a regular basis. ‘stretched to the limit’, apparently because of its high levels of service to, and caring for, its The American Society of Travel Agents (ASTA), Highlights of the study show that 40 per cent of Defaqto rates citizens overseas (p.1) will come as a shock to which has been engaging in a campaign to Canadians say they have travelled with someone many from other countries around the world.