Are resorts increasingly availing insurance services?
Insurance uptake by the resort industry is on an observed upward trajectory, largely due to growing understanding of financial volatility and risk exposure associated with major unpredictable events, like natural disasters or pandemics. The necessity of securing enormous investments needed for modern resort construction and operation, up against potential loss scenarios, is driving this trend. Approach towards comprehensive insurance coverage is seen as vital risk mitigation instrument, essentially becoming a pivotal part in the resorts’ business strategy.
What are the analytics indicating?
Studies are focused on deriving data-driven evidence in support of the perceived trend. Analytics indicate that this growing symbiosis between insurance and resort industry is reflected in the rising insurance premiums and payouts alongside an increase in the number of resorts availing insurance. This scenario suggests a developing and lucrative market for insurance providers that understand the unique dynamics of the sector, while also highlighting the increased perceived risks by those in the resorts industry.
What does the benchmarking metrics reveal?
Unveiled benchmarking metrics provide a comparative outlook on industry performance in areas of risk management. They highlight a direct correlation between resorts that prioritize comprehensive insurance coverage and those that demonstrate better financial performance in situations of unforeseen adversity. This resonates with the fact that advanced planning and risk mitigation strategies, such as astute use of insurance mechanisms, are crucial to achieving robust and sustainable business operations in the resort industry. Thus, such metrics serve as a potent tool for decision-makers within the industry to inform and refine their strategic considerations.
- Gross Written Premiums
- Net Claims Paid
- Underwriting Loss/Profit
- Combined Ratio
- Return on Equity
- Nights Booked per Resort
- Occupancy Rate
- Revenue per Available Room
- Average Daily Rate
- Operational Costs per Resort
- Increased Digitization in Insurance Processes
- Rising Demand for Comprehensive Resort Insurance
- Evolving Climate Change Risks Impacting Resorts
- Introduction of AI and Machine Learning in Risk Analysis
- Growth in Specialty Coverage for Resorts
- Increasing Use of Big Data Analytics in Policy Pricing
- Expansion of Cyber Insurance in Resort Management
- Adoption of Blockchain for Fraud Prevention
- Rise of Usage-based Insurance Models
- Adoption of Sustainability Measures by Resorts