There are thousands of extreme adventure holidays and experiences that you can try out now, as the Travel sector develops, especially at the top end of the market. From Space travel (OK technically the upper atmosphere) with Bezos, Branson or Musk one day, to Himalayan climbing, off-road motorcycle tours of Iceland or booking a crew place on a Transatlantic yacht race, there are plenty of choices for challenging, action packed holidays.
Of course, all that stuff carries a risk and often it isn’t the mainstream insurance brands that cover things beyond Alpine ski trips, or some gentle paddleboarding off the beach at Marmaris. Serious medical emergencies at sea, or in remote parts of the world mean big repatriation costs. The premiums have to match the risk profile; age, experience, instructor qualifications, plus assets at risk, as well as humans.
But the demand is there and for brokers especially the opportunity to understand the risks involved and provide the right coverage, is there for the taking.
KEY CHALLENGES FOR THE INSURANCE SECTOR
Jonathan Frankhamfrom World Nomads says:
“The trend has been super-charged in recent years for a number of reasons. New technologies are taking us places we never thought possible, opening up new frontiers for thrill-seekers and giving them opportunities to explore uncharted territories. Secondly, pent-up demand caused by the pandemic has inspired travellers to test themselves and push their boundaries. Lastly, programmes generated around extreme activities, such as ‘The Deepest Breath’ and the space tourism race amongst high-profile billionaires are more hyped than they have ever been.
“The challenges of insuring extreme tourism activities are varied for the travel insurance sector. As seen with recent fatalities in the deepest depths of the world’s oceans and at the highest peaks, there are far higher risks associated with these excursions than the average sightseeing trips.
“Insurance companies need to evaluate skills, training, and experience to assess the level of risk they’re taking on and they must figure out how to provide emergency medical help and evacuations in far-flung locations. Think of expeditions to the polar regions where medical emergency evacuations will involve thousands of miles or the extreme risks involved with space travel.
“World Nomads provides generous limits for over 200 adventure activities – including hiking up to 6,000 metres altitude – which covers trekking to Everest Base Camp or scuba diving to depths of 50 metres, shark cage diving and even heli-skiing, but steers away from summitting Everest or expeditions to the Mariana Trench. The reason for this is that we can only insure for activities that we can offer assistance with should something go wrong. For example, trekking to the summit of Everest will bring you to an elevation of over 8,000 meters, and at that altitude it poses a serious risk to pilots and passengers. Flying a helicopter is incredibly difficult. Landing it is considered to be nearly impossible. It’s the reason why retrieving bodies from the summit remains a rarity even today. And so, insuring against this type of activity will remain the reserve of more specialist travel insurance providers.”
WORLD NOMADS’ TIPS ON PLANNING FOR AN EXTREME ADVENTURE HOLIDAY
Is your activity covered by your insurer?
- Always read through the policy wording to decide which plan is best suited for the activities and sports that you have planned. If you’re not sure if something you’re planning on doing while on holiday is covered, get in touch with your provider
Does your insurance provide the level of cover you need?
- Many travel insurance plans categorise sports and leisure activities into separate levels to reflect degrees of difficulty or intensity. Check your policy wording and be specific when taking out insurance to be safe.
- Are you fit enough for the activity?
- Before trying new experiences, think about fitness and plan your activities accordingly
- Do you have the correct gear and equipment? Ensure you have all the equipment, footwear or protective clothing to participate safely, and consider whether you require coverage for these items when you take out a policy
- Is your activity operator certified or credited? Verify the facts before you book
EXTREME TOURISM FACTS
- The global adventure tourism market was estimated at approximately 288 billion U.S. dollars in 2021. According to Next Move Strategy Consulting, this figure is set to grow to roughly 2,824 billion U.S. dollars by 2030
- Virgin Galactic launched its first commercial flight into space in June, with paying customers set to be welcomed aboard from August. Tickets will cost £356,000
- More than 100,000 cruise passengers are set to visit Antarctica this season (October – March), an increase of 40% on the largest pre-pandemic year
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