Tourism

Post-Pandemic Travel Insurance

Innovation in tailor-made insurance products

As the global travel industry returns to normality following the worst of COVID-19, the topic of travel insurance is a hot topic.

Post-pandemic travel insurance is a hot topic in 2022. Most people consider the COVID-19 pandemic a thing of the past.

The vast majority of states around the world have either scrapped or significantly reduced restrictions on movement and behavior which had been introduced at the onset of the pandemic in 2020.

Through a combination of widespread community immunity brought about by vaccination, and the natural diminishing over time of the virulence of COVID-19, the mass movement of people around the world has largely resumed.

But what should be cause for celebration has been overshadowed by problems.

First and foremost, the cost of travel has increased to unprecedented rates.

The price of fuel is a primary cause, but staff shortages have also played a major role in certain parts of the world.

In Europe, for example, pandemic restrictions saw the almost total cancellation of commercial flights.

The staff were furloughed or laid off, and companies and airport authorities have simply not been able to bring them back or replace them.

Part of the reason for this is that wages have stagnated, and yet inflation is on the rise. Many workers simply don’t consider the pay worth it.

But staff shortages mean something else for the average traveller, something arguably more frustrating than expensive flights.

Cancellations are the bane of business and leisure travellers alike.

Hours upon hours of interminable waits, crowded airports, overpriced food and drink, and missed connections can all make the travel experience patently unappealing.

These disruptions can also make it uneconomical to run an airline.

In markets like the EU, where authorities have introduced strong consumer protection regimes which require airlines to offer refunds and accommodation depending on the length of the delay, the tolls can be massive.

On the other hand, all this chaos is a boon for another sector of the global economy: insurance.

Travel and flight insurance has never been more important. Cancelled and belated flights can be a nuisance but not a disaster with the right insurance coverage.

With increased global awareness of illness as a result of the pandemic, people realise the importance of having insurance coverage in the case of hospitalisation or sickness abroad.

Lost luggage, passports, wallets, and purses can all be covered depending on your policy.

And now, in this new era of uncertainty and technological advancements, insurance companies are more flexible than ever.

Most firms offer tailor-made products. These can very by budget, activities, destinations, and durations, but these days majority of requirements are met by even smaller insurance firms.

New styles of travel are also gaining popularity. Naturally, this means some travellers have different needs.

For example the concepts of “workation”, slower travel, and eco-tourism are all more popular than ever before.

As long as insurance companies stay on top of these trends, they can offer bespoke policies to these segments.

Despite all of the challenges mentioned, travel and tourism is coming back to life. With travel company and airline revenues dropping by up to 50% over the pandemic, getting back to work could not have come sooner.

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