How geopolitical shifts are changing travel insurance questions

The recent events in the Middle East haven’t necessarily changed what travel insurance covers, but they have changed the questions customers are asking.

We’ve seen an increase in enquiries from both travellers and travel agents looking for clarity around destinations such as the UAE, what happens if FCDO advice changes, and how cover may be affected if they’re transiting through these countries, for example to get to Australia.

During the initial uncertainty earlier this year, we worked closely with our insurer partners to keep customers and travel agent partners updated as the situation evolved.

Many enquiries centred around changing FCDO advice, flight disruption and whether customers would be insured for medical expenses if they travelled to or through these destinations.

Travel insurance is not a one-size-fits-all product; policy wordings, cover and exclusions vary from insurer to insurer. It is therefore vital that agents liaise with a specialist travel insurance provider.

They will be best positioned to ensure customers receive accurate information about their own circumstances, without travel agents needing to interpret insurance cover themselves and potentially falling foul of the regulator.

Recent global events have also highlighted a common misconception about travel insurance.

Many people understandably focus on disruption caused by airline delays, conflict or extreme weather, and our own research found travel disruption is now holidaymakers’ biggest concern.

However, when we look at claims, disruption accounts for only around 8% of cancellation claim costs. The overwhelming majority relate to illness, injury, a close family member becoming seriously ill or bereavement.

That’s why one of the most important messages travel agents can share is the value of arranging travel insurance as soon as a holiday is booked. Our research found that around six in 10 people who had already booked their holiday had yet to arrange travel insurance, highlighting that many travellers are still leaving it until much closer to departure.

On single-trip policies, cancellation cover starts immediately, meaning customers are protected if something unexpected happens before they travel.

We’ve seen customers forced to cancel because a child developed chickenpox just days before departure, or because a close relative was suddenly admitted to hospital. These are the situations that result in far more claims than the major news events making the headlines.

As holidays become more expensive, it’s also worth encouraging customers to check that their cancellation cover reflects the full value of their trip.

This is particularly important for cruises, long-haul holidays and tailor-made itineraries, where the financial commitment can be significantly higher than many standard cancellation limits.

Travel agents play an important role in reminding customers not to overlook travel insurance, but they don’t need to be insurance experts.

By working with a specialist travel insurance provider, they can ensure customers who have questions or more complex requirements are directed to someone who can explain the policy details, help them understand their choices and arrange cover that’s appropriate for their trip and circumstances.