For the first time since 2002, AAA forecasts that the number of Americans who travel this Thanksgiving will be lower than it was last November – the fourth consecutive travel holiday this year with a decline over last year, according to AAA. Nevertheless, whether they go by car, plane, train or bus, roughly 41 million Americans will travel 50 miles or more this week – and some of them will want to get those trips insured.

Jim Grace is the CEO of Insuremytrip.com, an online clearinghouse for travel insurance offers that is based out of Warwick. He talked with PBN recently about how his company is weathering the downturn in the economy and how the world of e-commerce has changed since he entered the business over a decade ago.

PBN: The travel industry has been hit hard by the economic downturn so far. Are you seeing fewer people buying travel insurance, or are people growing more cautious and therefore buying more?

GRACE: The travel industry has slowed down with the rest of the economy as consumers rein in spending. We do see opportunity, though, as the dollar becomes stronger against worldwide currencies and travel deals will be more prevalent soon. With the euro down nearly 25 percent from its highs less than six months ago, we expect travel to return sooner than later.

Travel insurance depends on travel, but we also see in times of economic strain an increased desire for greater financial protection. Travel insurance fills that need extremely well, protecting a traveler’s investment against many possible risks. Most notably in a difficult economy, there is coverage on many plans for travel-supplier bankruptcy and loss of employment.

PBN: Have you been impacted by the turmoil in the financial sector?

GRACE: In the insurance world we saw quite a bit of consumer concern when A.I.G. received a federal bailout. Even though we knew that A.I.G.’s claims-paying ability was never at risk, we now see consumers doing significant research to get a thorough understanding of an insurer’s stability and reliability.

Every insurance company on our Web site is rated by A.M. Best, an independent organization that rates insurance companies according to their financial strength and claims-paying ability. We provide the consumer many opportunities to review A.M. Best ratings, and we monitor the ratings and financial stability of every insurance company we represent.

PBN: Which of the five types of insurances you offer – trip cancellation, travel medical, travel major medical, emergency medical evacuation, and accidental death/flight accident – gets purchased most often?

GRACE: The most popular type of insurance sold is called a Package Policy. These policies include coverage for trip cancellation, trip interruption, travel medical and emergency medical evacuation. In a recent survey of people who have purchased travel insurance from InsureMyTrip, nearly 85 percent of those surveyed said they consider Trip Cancellation/Interruption insurance “very important,” more than 70 percent rated Medical Evacuation coverage as critical, and 50 percent deemed Financial Default pertinent and relevant to the current travel climate.

PBN: As e-commerce has grown more common, do you find that people are getting more comfortable with making transactions such as insurance purchases online?

GRACE: I have been at this e-commerce thing since 1995, and the Internet has completely transformed the way people shop. We find that people are more willing than ever to purchase online. It’s extremely important to support that online experience with real, live, responsive customer service. We have a team of licensed insurance professionals answering “what if” questions all day (and night). We speak to our customers by phone, e-mail, and online chat.

PBN: Where do you see room for expansion for your company?

GRACE: Since our launch in 2000, InsureMyTrip.com has grown from a company of one to a team of more than 40. Our eyes are always open – looking for people who can bring something extra, something new, and something special to the company. We are innovators and constantly looking to the future and the possibilities. That’s the beauty of growing a progressive, innovative company. The sky’s the limit! •

To find out more, read “Peace of mind for world travelers,” a 2006 PBN profile of Insuremytrip.com.