Consumers are more likely to purchase event tickets, flights and accommodation if offered ‘cancel for any reason’ (CFAR) protection, according to a recent report commissioned by Cover Genius, the insurtech for embedded insurance.
Of the respondents, some 63% said they were more likely to purchase an event ticket with CFAR protection, compared to a more limited refund protection option, or no protection at all. The number reduced to 54% when offered a more limited refund protection option.
Ticket-holders are also willing to pay more for CFAR protection, with respondents stating they would be willing to pay 123% more for CFAR protection than non-CFAR protection (29% extra of the ticket value vs 13% extra of the ticket value). Many said that convenience was the primary reason.
CFAR refund protection allows customers to seamlessly request a refund for their purchases, without having to sort through paperwork or provide documentation. A 17-point increase in Net Promoter Scores (NPS) showed that the convenience of CFAR protection led to higher customer satisfaction.
The report was conducted by Momentive.ai on behalf of Cover Genius and analysed 10,300 consumers from countries including the US, UK, Australia, Japan, South Korea, Brazil, Germany and France.
The travel sector has also seen a similar trend with CFAR protection, with 60% of travellers more likely to purchase an airfare when given the option to purchase CFAR protection rather than non-CFAR protection.
Angus McDonald, chief executive and co-founder of Cover Genius, said: “Today’s consumers are resoundingly opting for comprehensive, convenient protection options like CFAR.
“Insurtechs can help digital companies meet this demand with seamless integration via an API for ticketing platforms, venues, resellers, airlines, OTAs, hotels and more. Our award-winning distribution platform, XCover offers refund protection for any event, anywhere in the world, with CFAR and other travel insurance options that drive customer satisfaction and add-on revenue.”