1 00:00:03,450 --> 00:00:07,230 Sean Aylmer: Welcome to the Fear and Greed daily interview. I'm Sean Aylmer. Starting 2 00:00:07,230 --> 00:00:09,810 Sean Aylmer: a new role as group CEO of an international company 3 00:00:09,810 --> 00:00:12,740 Sean Aylmer: would be challenging at the best of times. Starting in 4 00:00:12,740 --> 00:00:15,420 Sean Aylmer: the middle of the pandemic was even tougher. Add to 5 00:00:15,420 --> 00:00:19,060 Sean Aylmer: that the fact that this company's main business is providing travel insurance and travel 6 00:00:19,060 --> 00:00:22,829 Sean Aylmer: assistance helping people in crisis situations, then it becomes even 7 00:00:22,910 --> 00:00:25,700 Sean Aylmer: worse. Cara Morton's a Group CEO of Cover- More. Welcome 8 00:00:25,700 --> 00:00:26,650 Sean Aylmer: to Fear and Greed. 9 00:00:26,910 --> 00:00:27,620 Cara Morton: Hi Sean. How are you? 10 00:00:28,260 --> 00:00:31,330 Sean Aylmer: You are a sucker for punishment, I think. Nice way 11 00:00:31,330 --> 00:00:32,930 Sean Aylmer: to start a job in the middle of a pandemic 12 00:00:32,930 --> 00:00:33,770 Sean Aylmer: when you're an insurer. 13 00:00:34,120 --> 00:00:37,790 Cara Morton: Yeah, look, it was challenging, but also it was very 14 00:00:37,790 --> 00:00:41,990 Cara Morton: exciting. It was challenging from the perspective that when the 15 00:00:42,229 --> 00:00:45,250 Cara Morton: pandemic started, there were a lot of people that were 16 00:00:45,600 --> 00:00:48,920 Cara Morton: stuck overseas. If you can cast your mind back and 17 00:00:48,920 --> 00:00:53,210 Cara Morton: remember that there were actually cruise ships at one point. We had people that were 18 00:00:53,210 --> 00:00:55,760 Cara Morton: on cruise ships off South America that we needed to get 19 00:00:55,760 --> 00:00:59,080 Cara Morton: home. And we had borders closing and airlines were closing 20 00:00:59,080 --> 00:01:01,950 Cara Morton: down their capacity. So to begin with it was very, 21 00:01:01,950 --> 00:01:06,070 Cara Morton: very challenging, but then it became exciting because we were 22 00:01:06,250 --> 00:01:08,880 Cara Morton: able to use the pause in travel to think about 23 00:01:09,230 --> 00:01:13,460 Cara Morton: how to reinvent travel and how to reinvent insurance and 24 00:01:13,750 --> 00:01:15,270 Cara Morton: assistance for the traveler. 25 00:01:15,569 --> 00:01:18,720 Sean Aylmer: Okay. So can you just give me a 101 on Cover- 26 00:01:18,720 --> 00:01:21,450 Sean Aylmer: More? What you do exactly, how big it is? And 27 00:01:21,450 --> 00:01:23,319 Sean Aylmer: I've got to say Cara, there's no payment in this 28 00:01:23,319 --> 00:01:26,090 Sean Aylmer: comment, I want you to know that I always use Cover- More and 29 00:01:26,090 --> 00:01:27,420 Sean Aylmer: I have done for about five years now. 30 00:01:28,290 --> 00:01:31,309 Cara Morton: Oh, thanks for that Sean. I like to hear those stories. Cover- 31 00:01:31,310 --> 00:01:37,149 Cara Morton: More is a global travel insurance and travel assistance company. 32 00:01:37,150 --> 00:01:42,959 Cara Morton: So we're based across five continents, 17 countries. We have 33 00:01:43,150 --> 00:01:48,080 Cara Morton: leading positions in the United States, in Argentina, in Ireland, 34 00:01:48,210 --> 00:01:52,990 Cara Morton: Australia and New Zealand. We employ about 1500 people. And so 35 00:01:52,990 --> 00:01:57,300 Cara Morton: we do two things. So travel insurance, which obviously you 36 00:01:57,300 --> 00:02:00,360 Cara Morton: buy and it protects you when you travel. And then 37 00:02:00,710 --> 00:02:05,520 Cara Morton: travel assistance, which is basically what people use when they're 38 00:02:05,520 --> 00:02:08,020 Cara Morton: traveling. So if they get into trouble, either be it 39 00:02:08,020 --> 00:02:12,450 Cara Morton: if they lose a passport, they have lost luggage or 40 00:02:12,990 --> 00:02:16,160 Cara Morton: they have a skiing accident, or recently we had someone 41 00:02:16,160 --> 00:02:19,530 Cara Morton: who got bitten by a scorpion in Hawaii. So the 42 00:02:19,530 --> 00:02:22,921 Cara Morton: assistance part of our business looks after you when you're traveling. 43 00:02:22,920 --> 00:02:29,549 Sean Aylmer: Okay. So you mentioned the pandemic. It allowed you in a sense to reimagine insurance 44 00:02:29,550 --> 00:02:31,790 Sean Aylmer: and the business itself. Just tell us a little bit 45 00:02:31,910 --> 00:02:32,650 Sean Aylmer: more about that. 46 00:02:33,120 --> 00:02:38,130 Cara Morton: Yeah, sure. Prior to the pandemic, we were quite archaic 47 00:02:38,130 --> 00:02:43,060 Cara Morton: from a digital perspective. For example, we had no apps. 48 00:02:43,070 --> 00:02:46,070 Cara Morton: There was nothing that we provided our travelers when they're 49 00:02:46,070 --> 00:02:48,850 Cara Morton: traveling. So basically if you took out Cover- More travel 50 00:02:48,850 --> 00:02:53,310 Cara Morton: insurance, what you got was an email with your policy 51 00:02:53,410 --> 00:02:56,780 Cara Morton: details attached to that. So you can imagine if you're 52 00:02:56,780 --> 00:02:59,200 Cara Morton: trying to find that when you're in trouble, it's a 53 00:02:59,200 --> 00:03:03,270 Cara Morton: bit challenging. But also what that meant was you took 54 00:03:03,270 --> 00:03:06,690 Cara Morton: out travel insurance and then you only used it if 55 00:03:06,690 --> 00:03:09,360 Cara Morton: you got in trouble. So what we did was think 56 00:03:09,360 --> 00:03:13,100 Cara Morton: about, okay, how can we provide value for a traveler 57 00:03:13,270 --> 00:03:16,690 Cara Morton: that goes beyond when they get into trouble? What was 58 00:03:16,740 --> 00:03:20,070 Cara Morton: something that we could do to provide them with information 59 00:03:20,070 --> 00:03:23,579 Cara Morton: so they don't necessarily get into trouble? So we created 60 00:03:23,580 --> 00:03:27,340 Cara Morton: a number of digital assets which basically enable a traveler 61 00:03:27,340 --> 00:03:31,340 Cara Morton: now to have an app when they travel. And it 62 00:03:31,340 --> 00:03:35,880 Cara Morton: gives them up- to- date information around what's happening around 63 00:03:35,880 --> 00:03:40,990 Cara Morton: the location where they are, be it political events or weather events, 64 00:03:41,340 --> 00:03:44,900 Cara Morton: COVID related events. You now have that in your fingertips 65 00:03:44,900 --> 00:03:47,650 Cara Morton: and you can make better decisions for yourself around what 66 00:03:47,650 --> 00:03:47,781 Cara Morton: to do. 67 00:03:47,781 --> 00:03:54,770 Sean Aylmer: Okay. How do you provide COVID insurance? So if I went online now, would 68 00:03:54,770 --> 00:03:58,430 Sean Aylmer: you be able to provide me with COVID insurance and just, how do you price that? 69 00:03:59,000 --> 00:04:02,830 Cara Morton: Yeah. So basically what we're able to do is to 70 00:04:02,830 --> 00:04:07,070 Cara Morton: provide you insurance. Now, this is different in different countries but 71 00:04:07,490 --> 00:04:14,050 Cara Morton: in Australia right now, say you're going to Europe in 72 00:04:14,050 --> 00:04:18,469 Cara Morton: June, July. You can take out travel insurance today and 73 00:04:18,470 --> 00:04:22,289 Cara Morton: that will cover you if you get COVID before you 74 00:04:22,290 --> 00:04:25,820 Cara Morton: need to go, you need to cancel. Or it covers 75 00:04:25,820 --> 00:04:29,040 Cara Morton: you if you get COVID when you're traveling and you 76 00:04:29,040 --> 00:04:32,790 Cara Morton: need to be hospitalized or whatever needs to happen with 77 00:04:32,790 --> 00:04:37,279 Cara Morton: you. So because now we've had time over the last 78 00:04:37,279 --> 00:04:40,070 Cara Morton: two years, and particularly I guess over the past six 79 00:04:40,070 --> 00:04:44,980 Cara Morton: months, to be able to understand how COVID, the different 80 00:04:44,980 --> 00:04:47,909 Cara Morton: permutations of it are moving. And now we had Omicron 81 00:04:48,710 --> 00:04:52,900 Cara Morton: which really hit us over Christmas, which was a challenge 82 00:04:52,900 --> 00:04:56,270 Cara Morton: to watch the impact of that from an insurance perspective, 83 00:04:56,839 --> 00:04:58,719 Cara Morton: we now feel that we're on top of that and 84 00:04:58,720 --> 00:05:01,990 Cara Morton: we can see that the patterns and our underwriter Zurich 85 00:05:01,990 --> 00:05:05,310 Cara Morton: who assists us here in Australia, has been able to 86 00:05:05,310 --> 00:05:07,390 Cara Morton: have a product in the market that covers people for COVID. 87 00:05:08,400 --> 00:05:13,130 Cara Morton: And in fact, all during the past two years, Cover- 88 00:05:13,410 --> 00:05:16,860 Cara Morton: More's been the only travel insurer who's continued to provide 89 00:05:16,860 --> 00:05:19,310 Cara Morton: travel insurance for people needing to travel. 90 00:05:19,740 --> 00:05:24,240 Sean Aylmer: Okay. But do you provide COVID insurance for all geographies? You 91 00:05:24,240 --> 00:05:27,320 Sean Aylmer: just used Europe as an example. In other hotspots, for 92 00:05:27,320 --> 00:05:30,560 Sean Aylmer: example, do you provide COVID insurance in those places? 93 00:05:30,960 --> 00:05:31,799 Cara Morton: Yes, we do. 94 00:05:32,110 --> 00:05:34,830 Sean Aylmer: Okay, Cara. So basically it depends on the type of 95 00:05:34,830 --> 00:05:38,040 Sean Aylmer: holiday, where people are going. The type of insurance that 96 00:05:38,040 --> 00:05:41,500 Sean Aylmer: kicks in really is dependent on a bunch of different 97 00:05:41,500 --> 00:05:44,489 Sean Aylmer: factors, be it COVID, be it where people are traveling to, 98 00:05:44,490 --> 00:05:45,230 Sean Aylmer: that type of thing? 99 00:05:45,700 --> 00:05:46,500 Cara Morton: Correct. Yes. 100 00:05:47,130 --> 00:05:50,630 Sean Aylmer: Okay. So how has COVID changed the way travelers think 101 00:05:50,630 --> 00:05:53,409 Sean Aylmer: about insurance? Has it been good for your business? I 102 00:05:53,410 --> 00:05:55,730 Sean Aylmer: appreciate it may have been a very difficult couple of 103 00:05:55,730 --> 00:05:58,279 Sean Aylmer: years, but going forward. I mean, I always take out 104 00:05:58,279 --> 00:06:00,870 Sean Aylmer: travel insurance anyway, but my kids who are traveling all 105 00:06:00,870 --> 00:06:03,580 Sean Aylmer: of a sudden think about travel insurance, which I'm sure 106 00:06:03,580 --> 00:06:06,010 Sean Aylmer: they as 19 year olds, they didn't care about that 107 00:06:06,010 --> 00:06:08,549 Sean Aylmer: too much previously, but now they're thinking about it. So 108 00:06:08,550 --> 00:06:11,050 Sean Aylmer: going forward, could it actually be a good thing for 109 00:06:11,050 --> 00:06:11,580 Sean Aylmer: the sector? 110 00:06:12,310 --> 00:06:16,870 Cara Morton: I think absolutely. We're already seeing the interest levels. And 111 00:06:16,870 --> 00:06:20,320 Cara Morton: you talked about your kids. We're already seeing the interest 112 00:06:20,320 --> 00:06:25,350 Cara Morton: levels in travel insurance spiking. So for example, calls through 113 00:06:25,350 --> 00:06:28,900 Cara Morton: to our customer service center asking a lot of questions. 114 00:06:29,150 --> 00:06:31,550 Cara Morton: A lot of them around COVID and what's covered while 115 00:06:31,550 --> 00:06:36,730 Cara Morton: you are traveling. But also we are seeing higher what 116 00:06:36,730 --> 00:06:40,570 Cara Morton: I would call attachment rates coming through. So for example, 117 00:06:40,930 --> 00:06:43,810 Cara Morton: where you book a flight and you get an option 118 00:06:43,810 --> 00:06:46,140 Cara Morton: of, do you want to add travel insurance on with 119 00:06:46,140 --> 00:06:49,180 Cara Morton: that? We're seeing that in some of our markets at 120 00:06:49,180 --> 00:06:52,960 Cara Morton: the moment double from what it was prior to COVID. 121 00:06:53,120 --> 00:06:54,960 Sean Aylmer: Stay with me Cara, we'll be back in a minute. 122 00:07:00,000 --> 00:07:03,040 Sean Aylmer: My guest this morning is Cara Morton, Group CEO of Cover- 123 00:07:03,040 --> 00:07:06,830 Sean Aylmer: More. I just want to get off the insurance side 124 00:07:06,900 --> 00:07:09,990 Sean Aylmer: and onto the assistance side. It must be quite a 125 00:07:09,990 --> 00:07:15,880 Sean Aylmer: logistical exercise to provide assistance, be that medical or otherwise, in 126 00:07:15,880 --> 00:07:17,590 Sean Aylmer: some of the countries people travel to? 127 00:07:18,200 --> 00:07:23,930 Cara Morton: Yeah, it is. So we have a global network of 128 00:07:23,930 --> 00:07:27,730 Cara Morton: assistance centers. So they're set up in China, in Malaysia, 129 00:07:27,940 --> 00:07:31,950 Cara Morton: Australia, Canada, and Argentina. And we're in the process of 130 00:07:31,950 --> 00:07:36,130 Cara Morton: setting one up in the UK. So we run those 24/ 131 00:07:36,130 --> 00:07:42,760 Cara Morton: 7 and we hire security experts and medical experts to 132 00:07:42,760 --> 00:07:45,429 Cara Morton: basically be at the first point of call to deal 133 00:07:45,430 --> 00:07:48,700 Cara Morton: with issues coming in. And then what we do is 134 00:07:48,710 --> 00:07:53,540 Cara Morton: we have a global network of providers that we reach 135 00:07:53,540 --> 00:07:58,880 Cara Morton: out to depending on where the traveler is. So it's 136 00:07:58,880 --> 00:08:02,310 Cara Morton: a global network of providers that we have done the 137 00:08:02,310 --> 00:08:05,010 Cara Morton: background checks on to make sure that they will be 138 00:08:05,060 --> 00:08:07,830 Cara Morton: adequate for a traveler in that area. So be it 139 00:08:07,830 --> 00:08:12,070 Cara Morton: a hospital network, a doctor network or security, because we 140 00:08:12,070 --> 00:08:14,920 Cara Morton: also do a lot of security work. We leverage those 141 00:08:14,920 --> 00:08:19,570 Cara Morton: providers depending on the country that the traveler's in. 142 00:08:19,570 --> 00:08:23,770 Sean Aylmer: Okay. You mentioned the scorpion and the Hawaiian traveler. You must 143 00:08:23,770 --> 00:08:28,150 Sean Aylmer: end up with some pretty interesting cases and remote cases 144 00:08:28,580 --> 00:08:29,900 Sean Aylmer: that you're providing assistance to? 145 00:08:30,520 --> 00:08:34,640 Cara Morton: Yes we do. When you talk back to the cruise ships, 146 00:08:34,929 --> 00:08:38,280 Cara Morton: a lot of our cases prior to COVID were on 147 00:08:38,360 --> 00:08:45,020 Cara Morton: evacuating people of ships that were very ill. A lot 148 00:08:45,020 --> 00:08:48,120 Cara Morton: of people get themselves into trouble by jumping on the 149 00:08:48,120 --> 00:08:52,469 Cara Morton: back of a moped or a motorcycle in Ubud in 150 00:08:52,470 --> 00:08:57,290 Cara Morton: Bali for example, or Thailand. And then they are a 151 00:08:57,290 --> 00:09:01,730 Cara Morton: long way from a hospital that can provide the assistance 152 00:09:01,730 --> 00:09:05,550 Cara Morton: that they need. And then we need to evacuate them 153 00:09:05,550 --> 00:09:08,949 Cara Morton: out there and helicopter them sometimes back to Australia or 154 00:09:08,950 --> 00:09:13,190 Cara Morton: to major cities. So yes, it is a massive logistical 155 00:09:13,230 --> 00:09:16,920 Cara Morton: challenge. And you could imagine what that was like in 156 00:09:16,920 --> 00:09:22,790 Cara Morton: COVID when we still had people traveling in 2020, 2021, and we 157 00:09:22,790 --> 00:09:27,209 Cara Morton: had to do some of these medical evacuations when borders 158 00:09:27,210 --> 00:09:29,870 Cara Morton: were closed and it was difficult to get flights, et cetera. 159 00:09:30,179 --> 00:09:32,050 Sean Aylmer: Cara, thank you for talking to Fear and Greed. 160 00:09:32,270 --> 00:09:33,140 Cara Morton: Thanks very much, Sean. 161 00:09:33,550 --> 00:09:36,650 Sean Aylmer: That was Cara Morton, Group CEO of Cover- More. This 162 00:09:36,650 --> 00:09:38,929 Sean Aylmer: is a Fear and Greed daily interview. Join us every 163 00:09:38,929 --> 00:09:41,339 Sean Aylmer: morning for the full episode of Fear and Greed, Australia's 164 00:09:41,340 --> 00:09:44,910 Sean Aylmer: most popular business podcast. I'm Sean Aylmer. Enjoy your day.