So the economy has been slowing down recently, and currencies have been reducing in value. Despite that, the travel industry is still booming. As currencies fall in value, travel to foreign countries suddenly looks cheaper as tourists look for places where their money goes furthest. Insurance agents can cash in on this with vacation sales.
More traditional avenues of the insurance business might seem more profitable - selling insurance for cars, or homes, or other propositions like these. It might seem strange, but insurance for vacations can actually be more profitable. With car insurance the main profit goes to the insurance company, not the agent. Agents are working hard to make sales, but there's only so much profit left once the insurance company has taken its share.
\"OK,\" you say, \"how about selling insurance for homes? There's got to be money to be made there, right?\" Again, you'd think so, but with everything that's happened recently - and will probably continue happening - tornadoes and hurricanes causing huge damage to big areas like the mid-West every year, it's getting quite difficult to make money here, too. Think about it - lots of people living around the gulf coast simply can't get flood insurance, because at the end of the day, it costs the insurance companies too much money when they have to pay out. Because of things like this, vacation sales really is the best option for an insurance agent.
Recently we've entered a period where the travel industry is undergoing a big growth in profits. When you compare the travel industry to most other industries, it's seeing greater revenue increase than most of them year against year - and this is for one big reason; we're entering a period where people who were born in the 'baby boom' are starting to retire, and are spending their retirement savings.
These people have made their money, and they aren't worried about spending it to have a good time. They have worked hard, and now they want to take their rewards, so they are spending to indulge themselves. They're reaching out across the world, travelling to far flung locations, and exotic places they once only dreamed about. Their nest egg has been collected, and now they're going to spend it - on themselves.
These sorts of people are often cautious, though - they want to feel protected. This is a powerful reason why vacation sales is a great option for insurance agents. When people take a trip, they want to be sure that they are protected from it being cancelled suddenly - most trips don't refund in these circumstances, so there's a high risk of losing the money they've paid out for a trip. If the traveller has bought an insurance policy for their trip then if it is cancelled they can get all their money back no matter what the reason for the cancellation. These reasons can be any number of things, from poor health to hurricanes, or almost anything else that stops you going on the trip.
This means that there is a lot of opportunity for an insurance agent to capitalize on this area. You can sell insurance on any trip anywhere in the world. It is the choice of the traveller to purchase insurance and for them it looks like a pretty good deal. With more and more retired people travelling, they want the security that if anything happens and they have to cancel their trip they will get their money back. In probability, though, the chances of these trips being cancelled is quite low.
There's another advantage here for the insurance agent; making money from an affiliate opportunity. An insurance agent can team up with a travel company such as MOR vacations - or several companies - and become the person travelers are referred to if they want to purchase insurance for their trip. This means the insurance agent no longer has to search for clients to sell insurance and instead the business comes straight to them, recommended by travel companies who then also make money off an insurance sale. It isn't for nothing that this sort of business affiliation is known as a win-win situation!
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