Holidaymakers are paying between 10% and 20% more for their travel insurance premiums as a result of extra Covid-19 costs, says a leading specialist.
Jeff Rush, chief executive and founder of Rush Insurance Services, said the additional risk means price rises for the average policy, with some even rising by 25%.
However, he said the travel insurance sector is seeing “green shoots” of recovery as holiday sales recover amid the easing of restrictions.
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“From our perspective, we are lucky to work with some of the trade’s stronger players such as Hays Travel and Love Holidays who have predominantly traded throughout the pandemic,” he said.
“July sales were particularly strong with Hays and Love Holidays, which gives me confidence about insurance sales.
“We can identify policy sales minute by minute, which gives me a flavour of August; it is looking like July, which is good.”
He said the insurance intermediary has moved to a new, larger office in Stockport because it aims to expand as travel recovers.
There is currently a team of 10 in Stockport, with a new recruit set to join next month to further streamline IT processes.
Rush said the past 18 months have been “very challenging” and insurance sales are “significantly” down compared to 2019.
Overall, for the year to the end of June 2021 Rush Insurance’s owned direct brands (Covered2go and Blue Bear) have seen travel insurance sales fall 79% year-on-year.
However, Rush Insurance’s managed sales of travel insurance sales via travel partners are down by 24% – but this is heavily skewed by the successes of major partners such as Hays Travel and Love Holidays during this period.
He added: “We have got confidence in where the market is leading.
“The traffic light system will continue to have challenges but we have confidence to move premises.”
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