Travel is Back! What does this mean for insurers?
With international travel starting to pick up again after Covid-19, what does this mean for insurers?
There is no doubt that the pandemic has had a profound effect on the travel industry. According to the World Tourism Organization, global tourism arrivals declined by 70-80% in 2020.
This represents a loss of 1 billion to 1.2 billion international tourist arrivals and a revenue loss of US$1.2 trillion to US$1.3 trillion.
The good news is that travel is starting to pick up again. Europeans have begun jetting to popular holiday destinations like Portugal, Mexico, and The Caribbean.
What does this mean for travel insurers?
As travel starts to rebound, insurers will need to adapt their products and services to meet the new needs of travellers. For example, many insurers now offer insurance plans that cover Covid-19-related travel disruptions.
Some insurers are also offering Cancel for Any Reason (CFAR) coverage, which allows travellers to cancel their trip for any reason up to 48 hours before departure and receive a partial refund.
With travel starting to pick up again, it’s important for insurers to be prepared for the new reality of travel. by offering products and services that meet the needs of today’s travellers.
Countries That Require Travel Insurance with Covid-19 Protection
There are a number of countries that now require proof of travel insurance that includes coverage for Covid-19 in order to enter the country.
These countries include (This list may change over time so we recommend double-checking with each region’s policies):
If you’re planning to travel to any of these countries, be sure to purchase travel insurance that includes coverage for Covid-19.
Asian countries that also require travel insurance with proof of Covid-19 coverage are (This list may change over time so we recommend double-checking with each region’s policies):
Do I Need Travel Insurance If I Have Health Insurance?
The answer to this question is, that it depends. Most standard health insurance policies do not cover you for medical expenses incurred outside of your home country. So, if you do get sick or injured while travelling, you will most likely have to pay out of pocket for all medical treatment.
Furthermore, even if your health insurance does provide some coverage for travel medical emergencies, there is a good chance that it will not cover the full cost. In these cases, travel insurance can help to cover the gap.