Insurance Speak: The future of business travel
Chubb's John Thompson and Ben Howell share that essential travel will become the standard for many companies determining where and when to send executives.
The advent of the coronavirus has taken a particularly high toll on all segments of the travel and hospitality industries. As these businesses struggle to find new ways to safely serve their customers, it has also provided an opportunity for insurers to develop new products for businesses and provide critical insights to assist with managing these risks.
The latest edition of the Insurance Speak podcast series features Ben Howell, Chubb deputy head of accident and health, Asia Pacific, and John Thompson, Chubb’s division president of international accident and health, discussing the different aspects of business travel and the role insurers can play in this new environment.
Thompson has spoken with numerous travel executives who shared that business travel will not return to previous levels. This will have a direct impact on the airlines since half of their revenues are derived from business travelers despite comprising only 10% of the total travelers. More passengers will also wait and book flights at the last minute as they monitor exposure numbers and local government regulations.
“Trips will be limited to only the most essential meetings in the near term,” says Howell. “Meetings and required client travel will be the only reasons to travel.”
There will also be fewer international trips and more interregional travel throughout areas such as Europe, he adds. “There will also be increased scrutiny for travel with less dining out and entertainment, and less leisure time added to business trips.” Howell also believes that higher-risk individuals will self-select out of travel and even going back to the office.
For insurers, this provides an opportunity to serve corporate clients as they fulfill their duty of care to their employees and work to keep them safe by providing timely medical care and travel assistance as needed.
To learn more about how companies can be proactive in protecting employees and clients as they travel, listen to the podcast above.
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