Behavioural research in relation to travel insurance products: implications of COVID- 19 on consumer outcomes considering consumer behaviours in acquisition, usage, and disposition decisions

Client: EIOPA

Duration: 2021 – 2022

Consortium: Open Evidence (leader), LSE, BDI, Brainsigns

Methodology: Behavioural Study

Tools: Literature Review, Focus Group, Behavioural Experiments, Neuroscientific Metrics (eye-tracking, facial coding)

Fieldwork: Italy, Germany, Romania

Geographical scope: EU27

The Covid-19 pandemic presents an unprecedented challenge for the whole world. This new crysis is not localized, but it is general and international in scope, with no single country being spared. The pandemic will reshuffle taken-for-granted determinants of tourism as we know it, and a crucial shift is likely to occur in tourists’ mindset: when the pandemic will fade and travel barriers will be lifted, tourists’ mindset will likely settle on a new equilibrium. EIOPA seeks to understand how the Covid-19 crisis influenced the changes in consumer needs with travel insurance and the perception consumers have of these needs.
In this context, the study has the following objectives:
– To assess the impact of Covid-19 on consumer needs, perception of these needs and attitudes towards travel insurance products
– To explore whether consumer behaviour (considering consumer biases) has changed or not when buying travel insurance
– To assess how consumers perceive contract complexity, exclusions and exceptions in the terms and conditions and how this is influenced by typical consumer behaviours and biases
– To inquire whether, due to Covid-19, consumers are paying more attention to terms and conditions and understanding the coverage provided by the travel insurance policy.
This study contributes to the understanding of how the Covid-19 pandemic influences human thought, behaviour and decision making.