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How Marsh can help you go the extra mile with card insurance

Insurance taken out as an additional benefit for the card holder can provide valuable coverage when travelling.

07/02/2024

The Nordics banking and finance market is mature and competitive, the possibility for an organisation to differentiate itself from rivals and standout to potential customers needs to be seized upon. One key differentiator used by our client is the free of charge travel insurance that card holders gain when using their card to book travel that includes an overnight stay domestically or when travelling internationally.

The last few years have been very challenging for both card holders and insurers with the uncertainty, first of the COVID restrictions and impact the pandemic had on travel, then the impact in the increase of the cost of living where the easiest expenses to eliminate, or reduce, are vacations.

Even when people were ready and able to travel again there was increased uncertainty and scrutiny around travel insurance — what was covered and how safe was it to book in advance when travel guidance was changing over time?

To find the appropriate premiums for potential claims in a world of travel restrictions is a challenge that Marsh continues to tackle with the insurers. While COVID was a unique situation our experienced specialists navigated it well and applied creative solutions based on hard data from our international network.

The evolution of post pandemic travel insurance

Card holders emerged from the pandemic with new expectations of what their travel insurance would cover and this left the insurance sector with the conundrum of how to remain competitive on coverage and pricing.

Our banking clients have benefited from the ability to offer cards with different pricing models, all of which delivered schemes that enhanced brand awareness, helped retain clients, and allowed them to increase card adoption and usage.   

Card holders in the Nordics have become accustomed to this perk, understanding that the higher value card they have the better coverage they receive. Disruptors on the financial market exist in Sweden, as in most European countries, often offering cross border solutions among European Union countries. However, offering travel insurance as an additional benefit is often dependent on territorial restrictions, understanding the local market and regulations has been an integral part of the solutions Marsh has created for the client. Whether the coverage includes lost or damaged baggage, flight delays, cancellations of flights or accommodation, or even extended to medical assistance, these programmes offer additional value that is appreciated by the card holders.

How to meet the demands of tomorrow

In Sweden, Marsh constantly monitors the data from our existing programmes and identifies new trends to help you meet the expectations of the market. Solutions that have worked in other countries can be customised and applied to deliver a programme that fits the needs of your organisation and clientele.

Options that are being developed that could increase the attractiveness of such programmes for banks include:

  • Offering incentives to travel in the most ecofriendly way possible where available, such as taking a rail journey rather than flying.
  • Insurance on demand where the cardholder would purchase relevant insurance cover that could be tailored to a specific trip, covering things such as vehicle rental, rental accommodation, and extended stays among others.
  • Additional insurance coverage such personal cyber, event cancellation, purchase protection, price guarantee, and personal devices, depending on the target audience and profile of the card.

Marsh is more than a leading global insurance broker and risk manager. We use digital solutions that offer a smooth journey to end users, and provide peace of mind to clients. Contact one of our advisers today to see how we can help you mitigate the risks you face and realise your vision.