Cover for disruption is essential, says Fiona Macrae, of Travel Insurance Explained.
Travel industry professionals have spent the last year solely focused on managing the issues Covid-19 has caused. Hours, days, weeks have been absorbed as we tried to keep updated with the ever-changing government advice and continuous travel restrictions.
But with news of a vaccine being approved and due to roll out before Christmas, it’s almost as if we can finally breathe a sigh of relief. Or is it?
What many of us may have forgotten about, until the last week when it regained top slot in the news agenda, is the looming end of the Brexit transition period. The prospect of leaving the EU without a deal becomes increasingly more likely, and if that turns out to be the case our troubles may not be quite behind us just yet.
With confidence in travel, the industry and travel insurance providers at an all-time low, professionals in the industry will need to work together to not only rebuild the damage done in terms of public trust, but to prepare for and mitigate any disruption that Brexit may cause for trips in early 2021.
Without a trade agreement, there is likely to be some form of disruption for holidays which take place shortly after January 1, as the UK and EU work through this new situation.
But we can help prepare our customers for possible disturbance and arm them with the knowledge to help them make decisions and protect their trips as best they can, in turn giving them the confidence to travel again.
For example, we can highlight the benefits of buying a package holiday and providing specific and detailed information around the protection offered when compared with a ‘DIY’ holiday that could leave customers more exposed. We can inform customers on additional ways they can protect their money and trip, such as looking for insurance policies that include cover against ‘Brexit disruption’, or financial failure.
In fact, holiday providers will need to turn their focus towards insurance in general, as the reliance on having a travel insurance policy becomes more important than ever.
Travel agents and tour operators have a duty of care and responsibility for the wellbeing of their customers under the Package Travel Regulations Act.
Therefore, if the transition period ends on December 31 and the UK no longer has access to the European Health Insurance Card (EHIC), or a similar agreement, then British tourists could face paying large medical bills if they require emergency treatment while on a trip to a country in the Schengen Area and don’t have the relevant cover in place. As such, it is our duty to make customers aware of their travel insurance options.
For example, a typical spout of diarrhoea and vomiting could set customers back around £4,000 if they become dehydrated and need medical attention. A broken leg that requires surgery could cost around £15,000 and a spinal fracture could set tourists back £40,000 if the break requires emergency surgery.
For this reason, agents and operators must make sure customers are well aware of the risks of travelling to the EU without travel insurance, and the impact that failing to disclose any medical conditions could have on their claim if no trade deal is to be had.