Travel: Govt Loophole Opens Business Cover Market For Brokers

The UK government seems keen to restrict overseas travel to mainly business/study related trips only this summer, which is good news for travel insurers. New legislation is going through Parliament and it seems likely that yet again, the main parties will agree to more restrictions on normal life for poorer people, whilst the wealthier strata can find a way to make that Dubai, Antigua or Florida flight.

Although the travel insurance market has shrunk overall as a result, those Instagram narcissists, second home owners and jet-setting archeology students will all need cover, not just for Covid but for travel, property damage, third party liability, filming, wedding costs, cyber losses and more. The net result will be fewer policies sold, but higher premiums due to the work or wedding related component of the schedule.

Valid reasons for escaping the midge-infested misery of a fortnight’s camping in Scotland this August include;

Travel to a wedding or funeral

Work

Escape from harm

Volunteering or studying

IE’s message to brokers and insurers is simple; produce bespoke cover that can be switched on, and off again, via smartphone on a daily basis. Because what the market needs is flexibility and ad hoc policies are the only viable solution in the absence of any coherent government strategy on travel. An annual travel policy is as much use as a concrete parachute this summer.

Tommy Lloyd, MD of Medical Travel Compared commented:

“The latest government update about the extension of the overseas travel ban is understandably going to make a lot of people apprehensive because the vast majority of travel insurance will become invalid. However, we still need to wait and see what the official announcements are following the Global Travel Taskforce report that is due on 12^th April.

This ever-developing situation is a good example of why it is essential to purchase travel insurance at the time of booking a trip anywhere, even if it is a staycation. Generally, if you had booked travel insurance right now for a holiday departing before the end of June, it is likely you would not be able to claim for a cancellation. However, your holiday provider and/or airline should provide you with a refund as FCO advice is now in place and claims should be pursued through them in the first instance. Travel insurance is a hugely important part of a holiday and is often overlooked or an afterthought.”