A remote resort is a type of property and casualty insurance. The development of this aspect of insurance has increased over the years with the growth of the world tourism industry, especially with remote island tourism centres like the Maldives, Seychelles, Malaysia, and more. There are challenges associated with insuring these resorts because of the unique characteristics of their location, such as their remoteness, proneness to multiple disasters, and the problems related to risk assessment of beach resorts, ski resorts, and wildlife retreats.

Traditional insurance models rely heavily on in-person property inspections and manual data collection, which are inefficient and costly for remote locations. Changes in current processes, combined with the integration of new and developing technology like Artificial Intelligence (AI), Machine Learning (ML), Geospatial and Satellite Imagery, and Mobile platform-based innovations like PWA, are poised to revolutionize resort insurance and improve the sector's future.

Global Resort Market Overview

The surge in international travel, as well as the growth of the travel and hospitality industry, has led to the expansion of the global resort industry. People, on average, have more disposable income than a decade ago, causing the global resort market to grow significantly. In 2023, the market stood at around USD 300.03 billion and is expected to grow at a compound rate of 18.2% till 2030. This growth substantiates the increasing demand for resort accommodations worldwide, especially in exquisite and remote locations.

Travel Insurance Market Trends

With the requirements of resorts and hotels growing, travel insurance policies are becoming increasingly popular. The wellness tourism industry is said to be 850.55 billion dollars in 2021 and is expected to rise to 2.1 trillion by 2030. This shows that there is increasing knowledge among travelers about the necessity of insurance coverage, especially when staying in remote resorts they plan to visit.

Insurance Industry Outlook

As the scope for luxury spending increases, the demand for insurance will also increase. The luxury hotel industry is predicted to grow to 192.02 USD by 2029, with a 5.60% annual growth. This solid growth shows the promising potential for specialized insurance, such as remote resort insurance.

Insuring remote resorts presents complications, especially when factoring in the growing demand for tourism and the hospitality industry.

Geographical Isolation: Remote resorts are often located in difficult-to-access areas, making traditional onsite risk assessments expensive and challenging to conduct.

Natural Disaster Vulnerability: These resorts are often located in areas prone to natural disasters such as hurricanes, rising sea levels, or even tsunamis, increasing the risk profile.

Data Scarcity: Lack of access to real-time data makes it difficult to evaluate risks properly and renew policies.

Profitably meeting such challenges calls for the use of radically new methods and harnessing technology to improve the processes of risk assessment, underwriting, and claims management.

Traditional Risk Assessment Methods

Resort owners have traditionally used physical appraisals to assess risks associated with the resort properties and collect data manually. While these methods have been successful in most parts of the world, they are less effective in remote locations and frequently lead to significant errors in risk assessment, and consequently, in determining premiums.

Limitations in Data Availability

Remote resorts often lack up-to-date information, making it difficult for insurers to stay well-informed. This information gap can result in inaccurate risk assessments, negatively impacting and raising costs.

Artificial Intelligence and Machine Learning

The application of new technologies such as AI and ML in risk assessment enables easy and speedy analysis of data sets by insurers. AI-trained algorithms can recognize patterns and forecast risks employing existing records, weather data, and specific details of the property, which leads to enhanced underwriting accuracy.

Data Analytics and Remote Sensing

Data analytics and remote sensing technology, such as sensors and satellite imagery, enable the remote monitoring of properties regardless of their location. With high-resolution images, emerging risks, environmental changes, and structural alterations can be identified, making risk management effective.

Mobile Applications for Data Collection

Mobile applications empower resort personnel to take images and videos and send them directly to insurance companies in real time. This ability enhances the risk assessment process and cuts the costs of having an assessor on-site to carry out evaluations.

AccelTree Software has been at the forefront of integrating technological solutions into the insurance industry. In collaboration with an Insurance Company, AccelTree has addressed the challenges of managing policy renewals for remote resorts by developing a prototype mobile application. This app empowers the resort's chief risk officer to capture and submit inspection data directly to the company's underwriting team, streamlining the renewal process and enhancing data accuracy.

Insurance for protecting the resort industry will transform significantly with the use of technology-enabled solutions, ensuring the right coverage for risks involved in the business. The move will change how business works and attract more talent and investment in the resort industry, ushering in stability and security for stakeholders. The approach and workflow of resort insurance in remote areas are ready to change entirely using modern technologies to solve persistent problems.

Integrating new and upcoming technology like Artificial Intelligence (AI), Machine Learning (ML), Data Analytics, LLM, Predictive Analytics, and better software can potentially improve the quality of insurance workflows from proposal to claim settlement.

Tech innovators like AccelTree Software and other InsurTech entities are well on the way to making the road ahead smooth and proven with their technological capabilities, paving the way for a resilient and efficient industry.

In conclusion, integrating advanced technologies into remote resort insurance mitigates inherent challenges and unlocks new opportunities for growth and efficiency. Stakeholders are encouraged to adopt these innovations to stay competitive and meet the evolving demands of the market.