Rising Tide of Travel Insurance Amid Uncertainty
Amid increasing travel disruptions, there's a notable surge in demand for sophisticated travel insurance and advisory services. With global instability affecting travel, more individuals and businesses are inclined towards comprehensive insurance policies, despite the nuances of coverage details and exemptions.
With increasing travel disruptions, leisure travelers are re-evaluating the level, type, and cost of insurance they purchase. Meanwhile, businesses are increasingly reliant on specialized advisory services to mitigate risks.
Since 2019, the frequency of global travel disruptions has escalated, influenced by factors ranging from COVID-19, extreme weather, and geopolitical tensions to technological malfunctions and airport incidents. In the United States, an ongoing shortage of air traffic controllers and aging technology has compounded these issues. Recently, flight cancellations at Newark Liberty were attributed to equipment outages and staffing shortages.
The heightened uncertainties have driven travelers towards more comprehensive, albeit costly, insurance plans, as highlighted by travel executives and analysts. Duncan Greenfield-Turk, CEO of Global Travel Moments, notes an increase in cancellation rates due to the unstable environment. This trend is evident with a 34% global rise in insurance purchases featuring 'Cancel For Any Reason' coverage, according to Squaremouth. Similarly, British and U.S. holidaymakers are increasingly investing in premium insurance protection, emphasized by Allianz Partners' CEO Anna Kofoed. The demand for tailored travel advice has also surged as businesses grapple with a changing immigration landscape, particularly in light of recent U.S. policy shifts.
(With inputs from agencies.)
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