Become a Home Based Travel Agent

All About Selling Travel Insurance
Joanie Ogg CTC MCC

I admit it, travel insurance has continued to be a mystery to me for more than 35 years in the travel industry. O.K., I feel better now having admitted it. I am not sure why I never took the time before to really understand the benefits and reasons for selling travel insurance during years as a travel counselor. I always suggested it but never really pushed it and I certainly never bought it myself. Why would I need it? Well, I am here to tell you that I am a now a believer and wish I had known then what I know now.

I decided to interview NACTA’s preferred insurance vendor, Travel Insured International, in an effort to not only educate myself but to perhaps help our readers to better understand the what’s and why’s of travel insurance.  My sincere thanks go to Kevin Herlihy, National Sales Manager for Travel Insured International has not only open my eyes but has also helped to make me a strong proponent for selling travel insurance!

J - Why should people purchase travel insurance?

K - Travel Professional should offer travel insurance to all of their clients to protect the investment that they have made in their vacation. Unforeseen emergencies can prevent them from going on their trip.

J - Is this easier to offer for the Travel Professional because of all of the events that have happen in the past couple of years, like SARS, 9/11?

K - Yes, it is Joanie. It is easier because your clients are probably more aware of travel insurance because of the way it has been openly discussed in all national papers and even on national television

J - What do you mean by unforeseen circumstances?

K - Unforeseen circumstances are things that you can not predict, like death, injury sickness to a family member, business partner and domestic partners. It also includes termination or layoff from your place of employment, terrorism and Bankruptcy and default.

J - Does all travel insurance cover Bankruptcy and Default?

K - No, Travel Insured and many of my competitor's products do cover for bankruptcy and default. Most of the tour operators and cruise line plans do not cover themselves for Bankruptcy and Default.

J - Is bankruptcy and default an important thing in a travel insurance policy?

K - I believe it is Joanie. We are still in an ever-changing environment for travel. No one knows the status of any tour operator’s financials. If you asked me if I ever in my mind thought that Far and Wide would file for bankruptcy and cease operation, I would of told you never in a million years. Boy was I wrong.

J - I always hear you saying that Travel Insured is a primary insurance company, what does primary mean?

K - Primary means that the travel insurance company pays the first dollar of coverage up to the policy limit. Another type of coverage is secondary. Secondary means that the claimant must go through their own insurance company first (home owners or medical policy) and them go back to the travel insurance company to get the remaining balance.

J - What does primary vs. secondary mean to the claimant?

K - Basically primary means that they will get their claim settled faster. There is no need for the claimant to file with their own personal insurance company and wait for that claim process to happen before settling with their travel insurance carrier.

J - What is a pre-existing condition?

K - Many people are treated for medical conditions such as blood pressure, heart or diabetes. As long as these conditions are under control you don't have a problem, but what if you have a flair up while traveling.

J - Can pre-existing conditions be waived.

K - Yes, they can and you need to know the policy language that you are offering. Most companies have a pre-existing condition waiver period. These can range from 7, 10 & even 14 day from there initial deposit date. If the policy holder purchased the policy between these times, pre-existing conditions are waived. There are also other terms on some policies, so learn the policy language on the pre-existing condition waiver and you will have no issues. 

J - Do pre-existing conditions only count for the policy holder?

K - No Joanie, they count for all family members. So the best time to purchase the insurance is within the period of the pre-existing condition waiver. This will give you the best coverage on all travel insurance policies.

J - In today's travel market and need for insurance, what can a Travel Professional do to sell more insurance?

K - First and foremost, they must offer it to every client that books a trip with them; no matter how big or small. Secondly they should not take into fact their age or their personal need for travel insurance. I am in my very early 40's and in great health. An agent might look at me and think, no way is he going to buy travel insurance; I'm not even going to ask. If the agent thinks about it, with my age, I have ageing parents and kids, all of them could have a unforeseen incident, which will stop me from going on my trip. Third, they also should get a signed waiver from everyone who does not purchase insurance and keep it in their clients travel file, just in case their clients can't go, they will have no real recourse against the Travel Professional

J - Why should a Travel Professional sell travel insurance?

K - Anyone who sells travel insurance, believes there are three main reasons to offer insurance to all clients that buy travel. 1) If the clients happen to need it, they will be a client for life, if they don't offer it to them and they need it, the client may go somewhere else for their next vacation. 2) It helps the agency protect themselves from lawsuits. If the client buys it and has to cancel the insurance company will be there to pay the valid claim, or if their client does not and the agency obtains a signed waiver, this will help them if there is a law suit. The 3^rd and final reason is money. Travel insurance still pays one of the highest commission percentages in the travel industry.

J - I hear agents say all the time, "I don't want to be an insurance expert, I just want to sell travel. Do you want them to be experts?

K - No. We do not expect Travel Professionals to be insurance experts. We want them to do what they do best, sell travel. If the client starts asking questions about insurance that they can not or do not feel comfortable answering then we gives the travel professional an 800 number to give to their clients. Our 800 numbers goes directly to our customer care department. They are extremely well trained to handle all the clients' questions. There is also a free look period with most travel insurance companies, so if you client purchases the policy and does not wish to keep it, they will refund their money. Worldwide Trip Protector happens to have the longest in the industry at 20 days.

J - What is the typical commission structure for the Travel Professional when selling travel insurance?

K - If the Travel Professional is selling an insurance product offered through the cruise line or tour operator; the typical percentage is 10. With a third party insurance company, like Travel Insured International, the typical commission can start at 20% and go up from there.                                                                 

J - What are some of the best ways a Travel Professional can improve their insurance sales.

K - The first thing I recommend to all my agents is to choose a single product for their office and familiarize themselves with the policy that they are selling. Typically the company offering the product the agent is selling will assist with training.  Again we don't want nor expect the Travel Professional to be an insurance agent; we just want them to feel comfortable with what they are selling. Secondly, they should offer it to all clients, not taking into account their demographics, the amount they spent on the trip or the destinations. Third and final, they should take steps to protect themselves if the client declines to purchase the policy. They should have a waiver signed or a statement on the invoice that shows that their client was offered travel insurance and declined.

J - You mentioned training. Do all insurance companies train their agents?

K - Joanie, I cannot speak for all companies. We at Travel Insured not only provide training to all our agents but we encourage our agents to let us help train them and their office staff. We welcome the opportunity to visit and train the office sales staff. We will go to a home-based agent's house to train or we will meet them for a cup of coffee and train them. We also can do Webex training for those who would like it or are in very remote locations and are hard to reach.  On our agent site we include many training tools for easy reference at the agents own convenience.

J - So if you can summarize what a Travel Professional
     should do in order to sell more insurance?

K - They should get a good feeling about the travel insurance company they are selling. They should have a good feeling and knowledge about the product. Offer it to each and ever client that purchases a trip from them and obtain a signed waiver or some other sort of declination showing that the client did not wish to purchase travel insurance. The Travel Professional can make some extra money selling travel insurance; however the real motivation should be to protect their client and themselves from the unforeseen events that can disrupt the best laid plans.  Selling travel insurance completes the package of professional services you as a travel professional provide for your clients.  With this in mind, they can guarantee that their client will come back to them for their next vacation experience rather then looking elsewhere

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