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Travel insurance to become an absolute travel necessity post Covid-19

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Published on March 18, 2021 | Est Read Time: 3 min

Travel insurance has always been extremely important, particularly in the international travel sector. Many countries and entities like Russia and the European Union have always had mandatory travel insurance requirements. With the world slowly coming out of the Covid-19 pandemic, more and more countries are expected to lay down travel insurance requirements. Many countries, including Aruba, Thailand and Jordan have already imposed new Covid-19 coverage requirements. More are expected to follow.

Nonetheless, seeing how many people faced different problems when the pandemic hit, adequate travel insurance has become a wise financial decision as international travel kick starts once again. Multiple factors contribute to the increased demand for travel insurance. Let us explore them one by one.

• People will buy travel insurance because they are wary of getting stuck in lockdowns while on a holiday or work trip.
  No matter how hard different governments try, they will always have to be ready to take drastic measures. If you visit a country and they declare a lockdown, you might get stuck in it. With buying travel insurance when you plan your travel, such unforeseen situations and unnecessary expenses can easily be accounted for. People will be expected to take the wise decision and buy more than adequate travel insurance. Similarly, insurance companies will push better products to serve evolving customer needs.

• People will buy travel insurance because they realise that air travel is the only choice despite high infection risk factor.
  Everyone knows that international travel, particularly long-distance travel is possible only by air. At the same time, everyone realises that flying means remaining enclosed with many people for long hours. Flying means breathing recycled air in a restricted environment and thus considerable exposure risk. People will be required to fly with every possible precaution like mask and PPE kits. Travellers insurance will be sold much more because people have realised that it is a very important precaution by itself and will be needed much more than ever.

• People will buy more travel insurance because the aviation sector will take time to return to normal service levels. Meanwhile people will need to cover risks of lost baggage and missed flights.
  As airlines have started carrying passengers again, their services have started to limp back to some semblance of operational normalcy. However, there will be long months before they can reach full-scale operations. During the period of reduced operational scale, there will be many cases of lost luggage, cancelled flights and many other problems. People who are going to travel in this period are going to be extra careful and buy more travel insurance for protection against such problems. Insurance companies will be able to match this demand with ease.

• People will buy more travel insurance because sporadic risk of Covid-19 may take years to be wiped.
  Even though most countries have started vaccinations for Covid, when you are travelling to different countries, there will always be sporadic infection risk. This is simply because Covid has not been completely eradicated yet. There are no plans of complete eradication of Covid in the works either because it is simply not technically feasible. More and more people will realise that travel insurance will always remain necessary and thus travel insurance will grow in demand significantly.

Conclusion

As per experts, the global size of Covid-19 travel coverage is expected to be anywhere between USD 30 to 40 billion. India being a large travel market is expected to contribute a lot to it. Therefore, the travel insurance market is only going to grow in the post-Covid-19 world.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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