Travel insurance claims taking off
With holiday insurance claims at record levels, travel tech specialist Aquarium Software says latest data from the Association of British Insurers (ABI) demonstrates the value of insurance. As the cost of the average holiday has risen by £500 over the same 12 month period, Aquarium is asking the obvious questions; can travellers afford not to have insurance – and can the insurance industry afford not to have the latest apps necessary to profitably manage this changing consumer landscape?
Over half a million claims were made in 2017 at a cost of £385 million, amounting to a claim a minute and a 30,000 year on year rise in claims 2016-2017. The rise has been driven by growth in cancellations rather than medical claims and with millions traveling with no insurance, millions must be missing out, leaving cash strapped families seriously out of pocket.
“This is the highest amount paid out by the industry since the Icelandic ash cloud in 2010,” said Aquarium Software Director, Mark Colonnese.
“That event hit ten million travellers and demonstrated the value of cover then; it’s still a primary reason for adequate cover, now.
The industry needs software solutions to make rising numbers of claims manageable and affordable.”
Tech is helping the sector get more savvy in assessing cancellation risks associated with carriers and destinations delivering bespoke medical assessments, providing realistic premiums based on historical data and increasingly accurate predictive power.
For consumers, insurance needs to be in place the moment a holiday is booked to cover cancellation and medical expenses. While medical claims saw a slight (£2m) increase, they remain costly.
“Drilling into the figures reveals airline disruption and bad weather lies behind them,” added Colonnese.
“Coupled with the rising cost of holidays, currency fluctuations and Brexit, external factors can deliver figures hiding the image underneath for insurer and consumer alike.
The average medical claim remains £1,300 and many more cost tens of thousands, making insurance essential.
Despite the fall in written premiums, pet and travel claims are at record levels.
Software is key to making business profitable during times of rising claims while helping to bring consumers round to the value of comprehensive insurance cover,” Colonnese concluded.