Klook, a travel and leisure booking platform and ZA Tech Global Limited, the technology venture established by ZA International and backed by Softbank’s Vision Fund 1, has announced a joint venture that will aim to accelerate “the availability and accessibility of travel-related insurance to consumers across the globe.”
As mentioned in an update shared with Crowdfund Insider, the agreement will aim to synergize Klook’s international presence and hyper-localized go-to-market strategy, “alongside ZA Tech’s experience in insurance innovation and technological know-how – ensuring global consumers will have seamless access to a broad selection of travel-related insurance policies at competitive prices.”
With this joint initiative, insurers can team up with Klook to “feature their insurance products on one of the world’s leading travel and leisure platforms.” The agreement will see Klook work with insurers to “design products that address the pain points of consumers in this new normal.”
Klook will kickstart travel-related insurance products “on its platform by the end of this year, with a focus on the Asia Pacific region,” the announcement noted.
AXA and Chubb are reportedly first two insurers “partnering with Klook on the substantial product line.” As noted in the announcement, ZA Tech will “empower Klook’s platform by exporting its proprietary solution – Fusion, to create a seamless digital experience for travelers and the ecosystem partners.”
The announcement also mentioned that Klook will “leverage ZA Tech’s customer insights to various markets to strengthen product innovation, customer engagement and increase insurance penetration.”
C.S. Soong, VP, Corporate Development at Klook, stated:
“The pandemic has changed the way we travel, with customers demanding increased assurance when they travel once cross-border travel resumes. We are excited about this milestone partnership with ZA Tech, as this is the first time any travel player will be rolling out a full suite of travel-related insurance on a multi-market level. With this, we can further simplify customers’ travel journey, enabling them to discover, book and purchase all they need during their travels from travel-related insurance to experiences.”
Young Yang, General Manager of ZA Tech Southeast Asia, remarked:
“Travel is a journey to explore and we want to make customers’ every step count with insurance protection. To that end, we are inspired to embed insurance in customers’ travel experience with ZA Tech’s insurtech innovation and enable the broader community to get insured.”
Yang further noted:
“A thousand miles begins with a single step and we are honored to embark on a significant journey with Klook, a dedicated enabler to empower a better travel experience. Combining ZA Tech’s cutting-edge solutions and Klook’s extensive market coverage, we are confident we can redefine customers’ travel experience by providing the right insurance product in the right place in a hassle-free way. More exciting developments are to come.”
The ongoing Covid-19 pandemic is set to increase demand for travel insurance after travel fully resumes. The international market for travel insurance was “estimated to be USD 21.5 billion in 2020 and is now projected to reach a size of USD 33.7 billion by 2027,” the announcement revealed.