Digital transformation has profoundly changed the way we travel, book accommodation and purchase assistance services. Online platforms, mobile applications and the immediacy of the digital environment have also driven the evolution of travel and hospitality insurance, which today must adapt to a more connected, demanding and rights-conscious consumer.
This new scenario presents significant regulatory challenges for insurance companies, but also great opportunities for growth and innovation. At the insurance department of Belzuz Abogados S.L.P., we analyse the main legal and practical issues affecting the sector and how appropriate legal advice can make a difference.
1. The legal framework for travel and hospitality insurance
The starting point is Law 50/1980 on Insurance Contracts (LCS), which regulates the essential principles of any insurance relationship: good faith, clear information and the obligation to correctly declare the risk. Although travel assistance insurance does not have specific regulations, the case law of the Supreme Court —such as Judgment 905/2023 of 7 June— has confirmed that these types of policies are fully covered by the LCS and must comply with its requirements.
Furthermore, when the trip includes public transport, Royal Decree 1575/1989 establishes the so-called Compulsory Passenger Insurance, which covers personal injury when travelling on public transport.
Added to this are the regulations on consumer and user protection, as well as European insurance legislation (Solvency II), which impose high standards of transparency and pre-contractual information. In a digital environment, these obligations take on particular relevance: insurers must ensure that the customer receives and accepts all essential information before taking out the policy, even when the contract is made from a mobile phone or a booking platform.
2. The legal challenges of digitisation
The contracting and management of travel insurance in digital environments poses new challenges that insurers and platforms must address with legal prudence.
Among the most relevant are:
a) Digital contracting and valid consent.
The subscription of policies through applications, portals or online intermediaries requires ensuring that the customer’s consent is clear and verifiable. Although the law does not distinguish between physical and electronic media, the insurer must be able to prove that the user was aware of the conditions, exclusions and limits of the policy. Electronic signatures and digital acceptance records thus become key tools.
b) Personal data protection.
Travel and hospitality insurance handles sensitive information: health data, location or traveller habits. The LOPDGDD and the General Data Protection Regulation (GDPR) require insurers to obtain explicit consent and adopt appropriate security measures. The use of geolocation technologies or remote medical assistance services must be carefully evaluated to comply with European regulations.
c) Transparent coverage and exclusions.
One of the most frequent conflicts arises when the insured is unaware of the limits of their policy. In recent years, several court rulings have reiterated that insurers are obliged to highlight clauses that limit the insured’s rights and to obtain their express acceptance. In digital practice, this means presenting information in a clear, visible and understandable way, without resorting to ‘small print’ hidden in links or menus.
d) Responsibility in the digital hospitality environment.
Accommodation or collaborative economy platforms, such as Airbnb or Booking, generate new risks: cancellations, damage to guests, loss of luggage or even cyberattacks. These scenarios open the door to specific digital hospitality insurance, but also to the need to correctly define who is liable in each case: the platform, the owner or the insurer.
3. Opportunities for the insurance sector
Beyond the regulatory challenges, the digital environment offers enormous possibilities for insurers who know how to innovate with adequate legal backing. Some of the most notable are:
– Microinsurance and flexible contracting.
Technology makes it possible to offer policies by the day, by journey or even by type of activity. This model, already widespread in other European countries, makes it easier for customers to take out travel insurance tailored to their budget and real needs.
– Integration with travel and accommodation platforms.
It is increasingly common for complementary insurance to be automatically offered when booking a flight or hotel. This model, known as embedded insurance, opens up new avenues of collaboration between insurers, travel agencies and digital platforms.
– Digital assistance and telemedicine.
The development of remote medical assistance services or 24-hour care through mobile applications provides great added value. In addition to improving the traveller’s experience, these tools reduce costs and streamline claims management.
– Artificial intelligence and data analysis.
The responsible use of data allows insurers to adjust rates, anticipate risks and detect fraud. However, this must always be done within the legal limits of the GDPR and under the principles of transparency and proportionality.
4. The role of specialised legal advice
The convergence of technology, tourism and insurance requires solid legal support. Insurers must review their digital contracting processes, privacy policies and policy conditions to ensure compliance with Spanish and European regulations.
From a firm specialising in insurance law, data protection and digital regulation, support can focus on:
- Legal review of policies to adapt them to electronic contracting and consumer regulations.
- Implementation of data protection protocols to enable the secure provision of assistance or telemedicine services.
- Defence in litigation and claims arising from exclusions, cancellations or malpractice in claims management.
- Preventive advice and compliance, helping companies turn regulation into a competitive advantage.
In an increasingly digital and globalised market, insurers with solid legal backing will not only reduce their exposure to legal risks, but will also project an image of trust, professionalism and transparency to their customers.
Conclusion
Digitalisation has redefined the concept of travel and hospitality, and with it has also transformed the world of insurance. Companies that understand this new reality and anticipate its legal implications will be better prepared to compete and grow.
At Belzuz Abogados S.L.P., we believe that in this new digital age, travel and hospitality insurance should not only offer protection to travellers, but also legal certainty to all parties. The balance between innovation and regulatory compliance will be the key to success in the coming years.
