Covid-19 travel insurance to become a major holiday staple

Covid-19 ‘s growing insurance policies combine with passports and sunscreens as holiday staples, creating opportunities for insurers as more countries need mandatory coverage in case carriers fail. ill-visit from the coronavirus.

Flight tickets are on the rise in some regions, driving cautious hopes of a resurgence in summer traffic, but also raising fears among tourist destinations of being hit by bills if holidays get lost with the virus.

More than a dozen countries from Aruba to Thailand need to broadcast Covid-19 for visitors, with Jordan most recently to consider such protections, organizers of an emergency services plan told Reuters.

The market for all types of Covid-19 travel coverage is estimated to be between $ 30 billion to $ 40 billion annually, according to travel insurance advisor Robyn Ingle, with companies like AXA and AIG subscription protection.

But an increase in demand for Covid-19 coverage also means insurers could be hooked on large payments if another wave of diseases leads to large numbers of canceled people or tourists becoming ill.

“Travel insurance and protective services start at a fast pace with travel as it begins, said Dan Richards, chief executive for travel risk and emergency management company Global Rescue.

Covid-19 insurance benefits typically cover treatment up to $ 100,000, and may include costs of coronavirus testing and services such as evacuation or burial or local cremation. These benefits, introduced by insurers in mid-2020, are sold either as add-ons or as separate policies with cover for illness or quarantine.

Jeremy Murchland, president of Indiana-based travel insurance company Seven Corners, said travelers are now “more likely to insure their trips,” as more countries want Covid coverage. 19.

A travel insurance plan that includes trip protection, coverage of medical expenses for Covid-19 and protection for luggage and personal effects typically costs 4% to 8% of the dollar value of the trip, Murchland said.

While the pandemic has spread, demand for coverage has created an opportunity for the hard and niche insurance industry to develop new products, companies said.

For example, in June, Seven Corners introduced an optional medical travel plan with coverage for coronavirus costs, Murchland said. By the end of the year, coronavirus transmission generated approximately 80% of total medical travel plan sales.

Seven Corners also saw a 20% increase in travelers purchasing “cancel for any reason” policies at a high price in 2020. The policies cover the costs of virus-related cancellation.

Some countries have ordered travel insurance for incoming visitors – either by incorporating it into their entry or visa fees or by requesting proof of coverage, the person said. World Nomads insurance.

Jordan is assessing whether visitors should be required to pay a mandatory flat fee as part of a program from Global Rescue and the World Travel and Tourism Sustainability Council, council co-chair Taleb Rifai said. The program, which costs up to $ 100 per person, covers some accidents and illnesses like Covid-19.

Jordan Tourist Bureau was not available for reference.

It is unclear how demand for cover will grow as many more people become infected against the coronavirus with vaccines.

Frank Comito, special adviser to the Caribbean Hotel and Tourism Association, said some budget travelers have complained about mandatory coverage. And some countries may stop the requirement or rest as “we will move away from the pandemic.”

Rifai, former secretary general of the UN World Tourism Organization, said he expected countries to continue to need to broadcast as the vaccines take “years” to roll out worldwide.

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This story was published from a wire group group with no text changes.

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