PassportCard looks to shake up travel insurance market

A new travel insurance product which aims to simplify the treatment and claims process is currently planning its Canadian debut.

Launched in Israel in 2012, PassportCard allows travellers to purchase daily or one-year policies before heading out on vacation and by calling the company in the event of an accident, illness or lost luggage, can receive funds to cover any expenses incurred while abroad, offering a real-time alternative to traditional travel insurance products.

Orit Mendels, vice-president of marketing for PassportCard, recently met with PAX to discuss the product and how it fits into Canada’s travel insurance landscape.

While PassportCard is yet to officially launch here, Mendels said that the company is in talks with potential Canadian insurance partners while gauging interest in a new travel insurance product amongst consumers and the travel trade alike. According to a Canadian consumer survey conducted by PassportCard, 78 per cent of respondents said they would consider purchasing insurance with the company, 38 per cent would recommend it to a friend or family member, 27 per cent would purchase the product at a premium and 36 per cent would switch travel insurance providers.

“Canadian travellers deserve to get a better travel insurance experience,” Mendels told PAX. “We want to shake up this dormant market and change the rules of the game.”

By purchasing a policy and bringing their PassportCard on their trip, a traveller who has an accident or becomes ill during their vacation simply calls PassportCard to have their account “topped up” with funds to cover the expenses. Mendels pointed out that travellers are free to choose which facility they attend for medical care and explained that to calculate the cost of coverage, the company maintains a database of medical services costs collected from around the world; in the event that a clinic or hospital attempts to overcharge a traveller, the matter is settled between the healthcare provider and PassportCard without the traveller having to act as negotiator.

Using the example of lost luggage, Mendels said that travellers using PassportCard can use their smartphone to take a picture of documents confirming the luggage was lost and send it to the company, which will then add funds to the account (or in cases where cash is required, send a PIN number which allows the PassportCard to be used at ATMs) to purchase any replacement items.

In Israel, PassportCard has served hundreds of thousands of travellers in the three years since its launch, with a current 20 per cent share of the country’s travel insurance market and 85 per cent repeat business from consumers. The product has also recently entered the German market through a partnership with Allianz Global Assistance, where it has received an overwhelming response from both travellers and the industry.

Canada has been chosen as PassportCard’s next expansion territory due to the size of the travel insurance market and the static nature of the insurance industry, which Mendels believes is “due for a shake-up.”

“When analyzing the global insurance market, we found that Canadians are avid travellers,” she said. “It’s a big market and there’s change happening in the travel industry with new products and services like Uber and Airbnb; it’s time for insurance to change as well.”

Prices and policy details for Canada have yet to be revealed and will be set by the insurers partnering with PassportCard.

In addition to benefiting travellers, PassportCard offers a “lifetime commission” model to agents selling PassportCard to clients, allowing them to make money on all future policies purchased by a traveller.

“It’s where the world is going and it’s high time the travel industry has its shake,” Mendels said.

For more information, visit www.passportcard.com.