How safe is safe? : comparative analysis of travel insurance and perception to travel risks

Abstract

This research study relates to the comparative analysis of travelling risks and the risk perception of travellers. Therefore a qualitative approach was chosen as beliefs, perception and attitudes cannot be quantified. The aim of this study is to explore consumers' attitudes towards travelling risks and the purchasing of travel insurance in context of the local travel insurance market's business approach. Thus this study aims to provide a better understanding as to why individuals choose to purchase travel insurance when going abroad and the perception of travel risks involved whilst persons are travelling. This study made use of both primary research and secondary research. The primary research was gathered through the use of a qualitative questionnaire that was distributed to one hundred individuals. In addition two semi-structured interviews were conducted with senior managers of two local insurance companies. They provided primary data with regards to the travel insurance market. Both gave relevant data to the subject at hand. The data was than analyzed and presented in the form of descriptive statistics and quantitative descript. Secondary data was gathered through the use of online libraries; however such secondary data for the local travel insurance market was sporadic in nature. Thus, secondary data and findings of internationally published papers were used to form this study's literature review and subsequently to critically discuss the primary data collected and analysed for the present research study. Through the analyses of the findings it was concluded that travellers are aware of the need of travel insurance as they are aware of the presence of risks and unforeseen circumstances when travelling. However travellers perception of risk is only limited to a number of risks they perceive as most prominent when travelling. Therefore it was concluded that travellers need more awareness as to potential risks that can manifest while travelling.