Did your travel insurer offer to pay you to cancel your holiday? As a minimum, travel insurers should inform their customers whether they are covered in an event of a lockdown.
We are a little surprised that travel insurance companies aren’t reaching out to their customers to guide them through these uncertain times of “Instant-Airport-lockdowns”, especially after the breakout in Italy.
If you are stuck at a travel destination – will your travel insurance be covering extended stay expenses? If yes, then as a travel insurer, it is probably cheaper to discourage travel and refund the holiday cost before travel (prevention). If no, then we believe it is the duty of travel insurers to inform their customers that this particular (pandemic) event is not covered.
One could argue that this is a mutated version of the regular flu (albite intense) with similar propagation patterns. Correct … but regular flu doesn’t shut down cities and airports.
For insurers, ultimately it’s down to responding to the reactions of the public bodies and public at large.
See how CoVi Analytics is freeing risk teams from reporting overheads to think about external factors that may impact the business.