The ITIJ team have been reporting live from ITIC Americas in Panama this week (4 March 2024) sharing the discussions that took place at the conference. Read all reports

Flavio Ortolano, Chief Information Officer, TuGo, started his talk by saying there is a powerful force reshaping the future of travel health insurance: Generation Z.

“These are digital natives who have never known a world without the internet, who swipe before they write, and for whom technology is as natural as breathing,” he said, adding that they are not just travelling; they are redefining travel with every tap, swipe, and post.

Ortolano went on to saythat 53% of US Gen Z prioritise mental health when choosing brands. Close behind are environmental and sustainability issues and racial and gender equity, both at 47%.

“There is also a significant uptake of buy now, pay later services among Gen Z, with 37% having used these services recently – flexibility in payment is expected,” he said.

Ortolano added that Gen Z and millennial travellers:

• Want authentic local experiences
• Budget isn’t a barrier
• In the US, frequent leisure travellers are more likely to be Black, and casual travellers more likely to be Hispanic, compared with other generations
• The desire for adventure, cultural experiences, mental health, and bucket-list achievements is high
• 46% of Gen Z and 43% of millennials are eyeing international destinations in the next year.

They are also sceptical of traditional advertising and are more likely to trust recommendations from their peers.

For insurers, this means embracing a more customer-centric approach. “Customisation is key to capturing Gen Z’s attention and loyalty,” Ortolano said.

Services that would add value to a travel health insurance marketplace platform include:
 

• Emergency medical services
• Travel assistance services
• Wellness and mental health support
• Adventure sports coverage
• Travel concierge services
• Telemedicine services
• Vaccination and health advice
• Luggage/personal belongings protection
• Cancellation and interruption insurance
• Local experience packages
• Data-driven personalisation.

“Platform-based models align with the intrinsic behaviours and expectations of Gen Z travellers,” Ortolano said, “where technology, community, and commerce converge to create an ecosystem that resonates with the digital-first ethos of Gen Z travellers.”

He then spoke about the potential of artificial intelligence (AI) for travel businesses.

To finish, Ortolano said that by focusing on key areas, businesses can not only connect with Gen Z consumers on their terms, but also position themselves at the forefront of digital innovation within their industry.

Dr Aldiona Kerri, Medical Doctor Project Manager from Europ Assistance, took to the stage and explained that the Gen Z demographic is now aged between 12 and 26, that 95% of teens have access to a smartphone, and 45% say that they are online “almost constantly”.

Social media (TikTok, Instagram, Snapchat) is used constantly and videos are preferred. She said that it’s important to remember that the demographic is very eco-conscious – they are the first generation to grow up in a time when climate change is defined as an issue. They prefer buying services and goods from businesses that care about the environment and have a positive social effect.

Dr Kerri went on to say that in the US, as of 2022, Gen Z constituted 20% of the population. They have, on average, three leisure trips per year and sightseeing is the top reason to travel for 70%. Gen Zers and millennials are far more willing – at 87% and 83%, respectively – to pay extra for travel protection compared with other generations, according to a report by Bank of America. Given the pandemic and limited disposable income, they are more keen on insuring trips, so that if something happens, they can travel at a later date.

For insurers, Dr Kerri said it’s important to consider that they are a generation raised in the digital world, soon to become the insurer’s customer base. She said that to make the insurance industry relevant to Gen Z, it is important to leverage social media – partnerships with social media traveller influencers can build brand awareness, trust and authenticity.

She added that insurers “must show visible sustainability and social responsibility and communicate their efforts transparently”.

Dr Kerri said that Google reviews, TikTok and Instagram are vital, and that Gen Z will always check socials before purchasing any product. They also won’t hesitate to share their experiences publicly.

She said that generative artificial intelligence (AI) is valuable to the demographic – they want instant gratification and expect quick responses to their inquiries, and “AI chatbots are a game changer in the insurance world”. For operators, AI saves time and can improve the customer journey. For customers, they get instant and easily accessible information.

Dr Kerri finished by saying that mobile apps are key to enhancing the customer experience and offer convenience for the client and/or patient.