Booking travel and cancellation insurance in one go
Conventional travel bookings and insurance purchases are separate processes. Travelers must visit different websites, manually input travel and personal information, and navigate a cumbersome route to secure insurance coverage.
Embedded insurance eliminates the hassle. Travelers select and tailor insurance while booking flights and accommodations. With minimal clicks and input, their travel and personal information is shared with the insurer. It’s a single, seamless, efficient process.
However, the adoption of embedded insurance has faced challenges not only for insurance companies but also for travel websites, airlines, and accommodations providers. Development resources, costs, and the need to outsource to insurance agencies have been major barriers to widespread implementation.
In response to these challenges, Mysurance—a small-amount, short-term insurance provider within the Sompo Group and a 100% subsidiary of Sompo Japan—developed the Tag-in system*. This unique solution enables the easy integration of embedded cancellation insurance, simplifying the process for partners and travelers alike.
*Trademark pending
Empowering travel operators with the Tag-in system
By minimizing the development resources and costs for partner companies, Mysurance’s Tag-in system is enabling the rapid implementation of embedded insurance. Moreover, by utilizing the advertising model of the system, even travel operators who typically face challenges with outsourcing to insurance brokers, such as small travel agencies and independent accommodations providers, can integrate cancellation insurance into their websites without becoming insurance brokers themselves.
Mysurance has leveraged its extensive knowledge in embedded insurance to develop a versatile system that can flexibly work with a variety of booking platforms. The Tag-in system contributes significantly to the widespread adoption of embedded cancellation insurance, helping to realize the Japanese concept of “sanpo-yoshi” (beneficial for buyers, sellers, and society) in the domestic tourism industry.
Bringing sanpo-yoshi to the tourism industry
Travel should inherently be a positive experience. However, when illness or bad weather forces travelers to cancel their bookings, the disappointment of not being able to go on the trip is aggravated by the financial burden brought by cancellation fees, quickly turning the experience negative. With cancellation insurance, travelers can plan their trips with peace of mind and, in the event of a cancellation, transform the situation into a positive experience by being able to rebook their travel plans. Additionally, travel operators can securely recover cancellation fees, which contributes to the sustainability of businesses in the industry.
Responding to the challenges faced by Japan’s pandemic-stricken tourism industry and driven by the desire to support customers who wish to make plans and travel with peace of mind, Mysurance used quantitative and qualitative user data to develop the approach that is helping bring sanpo-yoshi to reality.
