The Warehouse is targeting the $90 million market for holiday insurance in a new venture with the country's largest insurer IAG.Today, the retailer launched a online travel insurance store offering comprehensive cover for worldwide travel – with The
The Warehouse is targeting the $90 million market for holiday insurance in a new venture with the country’s largest insurer IAG.
Today, the retailer launched a online travel insurance store offering comprehensive cover for worldwide travel – with The Warehouse’s bargain price promise.
Travel insurance has been available on a small scale throughout Red Sheds stores for eight years, for purchase in four-day blocks.
So far it has captured only 2% of the market, dominated by Southern Cross.
Now, it’s hoping to capitalise on the high volume of weekly traffic to The Warehouse Online and the large number of Kiwis who travel overseas without insurance – an amount the Warehouse estimates to be between 20-40%.
General manager of The Warehouse’s financial services division, Phil Devlin said the company understood many uninsured travellers were unsure where to buy insurance and found the products difficult to understand.
“Not only does this create potential for financial hardship, it can have implications for people’s health and safety too.”
Global travel disruption caused by the recent Icelandic Volcanic eruption had highlighted the importance of travel insurance, he said.
“Compared to the price people are willing to pay for their overseas holidays, travel insurance is a relatively minor cost - particularly when you consider the anxiety and uncertainty facing travellers in the last few weeks.”
Mr Devlin said insurance packages would be at the “sharp end of the bargain spectrum” and would be targeting people who book travel insurance after they had bought airline tickets.
The Warehouse head of multi channel development Richard Harrison said the addition of travel insurance is another step towards becoming a multi-channel retailer.
Mr Harrison said increasing numbers of New Zealanders were making their travel plans via the internet, booking for flights, accommodation, rental cars, entertainment and travel insurance.
