Tool will help travellers and travel agents understand the fine print of what policies cover
Holiday Extras launches new AI tool after it reveals 55% of travellers don't read insurance documentation properly
Travel ancillary provider Holiday Extras has unveiled it has created a brand-new, industry-leading piece of AI technology that allows customers and travel agents to easily read through the terms and conditions of their insurance documents.
The launch comes after the company ran a study with 1,000 holidaymakers to understand how diligently they read the details of their travel insurance policies.
It found that over half (55%) said they did not read it properly, with a quarter (24%) admitting to only skimming them, while 28% only refer to a brief online summary and 3% not reading it whatsoever.
Even the customers who said they did read their documentation, incorrectly assumed that they would be covered in almost any scenario.
Despite the increase in extreme weather and events caused by climate change last summer, three quarters (74%) assumed their insurance would automatically cover impact on their travel caused by natural disasters, while 68% assumed it covered disruption from strike activity.
Additionally, 62% assumed that their insurance would cover them when travelling in any type of size of vehicle, which is not always the case.
To tackle this, Holiday Extras has pioneered new technology that will help holidaymakers understand exactly what their travel insurance policy covers them for.
It has been acknowledge by Which? as having the "clearest insurance policy documentation" on the market, but it will now make understanding the detail in insurance documentation even easier.
Its new AI Insurance Explainer tool named SYD (Search Your Documents) uses artificial intelligence technology that allows customers to find specific details quickly and simply within their insurance documents and check what their package covers.
The tool is available to all Holiday Extras customers and can be found on its app as standard after booking.
Howard Dove, managing director insurance of Holiday Extras, said: “We have seen a steep rise in insurance claims across the market and have been surprised to see the results of our own research which show how many travellers misunderstand what the policy they’ve purchased covers – this, in most cases, is the main reason why claims are denied.
“We are therefore very pleased to bring SYD to the market. It will be revolutionary in improving the experience of travellers across the country and it demonstrates how AI can be used to make simple technology that has a big impact.
"Most vitally, it ties into our ethos of making holidays hassle-free, which has been at the heart of Holiday Extras since the day it was founded."
He added: “Holiday Extras is confident that the tool will make understanding the intricacies of travel insurance easier and mitigate the number of claims being made due to simple misunderstanding of documentation”.