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June 10, 2022

The impact of the pandemic on travel industry and travel insurance

The impact of the pandemic on travel industry and travel insurance

There is now hope for the evolution of travel insurance in UAE in a post-pandemic world and all tourism operators must adapt to the new ways people are choosing to travel & so will be the insurance to cover it. The insurance providers have developed new flexibility for unprecedented situations and Travel Insurance is going to be a long term evolution, which must be adaptable & customized based on the traveler's profile besides the absolute importance to avail one when you travel.

How have the changes in the travel industry affected the travel insurance industry?

  • Introduction

The Coronavirus has proven to be one of the most unprecedented crises in the tourism industry. One out of five jobs in the world over the past decade has been generated by the travel and tourism industry. (World Travel and Tourism Council, 2020). Unfortunately, the pandemic has caused the tourism sector to dip profusely because of the travel ban. It was observed that there was approximately a 40% global employment drop (142.6 million people lost their jobs) in the year 2020 alone when compared to the previous year.

After coming to a screeching halt, the travel trends have changed in the last two years. With international travel at a standstill since March 2020, the closure of excursion sites and attractions, restrictions on public gatherings (indoor and outdoor) in many countries, and the cancellation or postponement of big events and festivals; the effect of the coronavirus has been quite overwhelming and immediate. In the later months, it was reported that a tourist would hypothetically incorporate several new trends in the tourism industry in the years to come. They would be more cautious and prefer domestic destinations accessible by car and stay at rental properties rather than crowded resorts and hotels. This has also led travel insurance cover to change over time.

No other insurance product has been so adversely affected by the pandemic as travel insurance. Social and travel restrictions both within and outside the countries were put in place and still prevail to an extent so that the spread of the virus can be curbed easily. Hence, with the lack of travel and tourism came a heavy drop in travel insurance purchases. However, the vaccination roll-outs have brought in a shift, as more and more people are getting vaccinated & travel restrictions are being removed, a surge has been seen in international & domestic travels. There is now hope for the evolution of travel insurance in UAE in a post-pandemic world and all tourism operators must adapt to the new ways people are choosing to travel & so will be the insurance to cover it. The insurance providers have developed new flexibility for unprecedented situations and Travel Insurance is going to be a long-term evolution, which must be adaptable & customized based on the traveler's profile besides the absolute importance to avail of one when you travel.

When even the best-planned trips can be impacted by the unexpected, travel insurance is a small cost relative to the trip costs you can protect—especially when traveling uncertainties and surprises abound.

We understand the travel risks faced by travelers and the challenges faced when you get injured or fall sick while in a foreign destination.

This is why having travel insurance becomes an essential part of traveling. It not only acts as a safety net against the risk of incurring unforeseen medical expenses but also safeguards against other travel-related emergencies – like losing a passport or checked-in baggage.

A typical travel insurance policy may cost only around 5% of the total cost of your trip but the money you pay to purchase travel insurance will help make up for a financial loss if something unexpected impedes the trip.

 

Now more than ever a Travel Insurance policy is designed & tailored for today’s travel needs keeping the pandemic situation in mind to safeguard the travelers when they commence on their journey & predominantly take care of Medical & Travel inconveniences.

5 reasons why travel insurance is the first thing you should tick off your list when you plan a trip:

  1. Saves from unforeseen medical expenses

  • Medical Cover

When you are in a foreign country, medical cover, which is a part of travel insurance in Dubai offers much-needed help. From getting emergency medical coverage to evacuation, repatriation, or even hospital cash allowance, are covered in medical cover offered by travel insurance in Dubai.

 

  • Covid-19 Coverage

Covid-19 coverage is now offered as one of the main benefits of travel insurance plans in the UAE. Many comprehensive travel insurance plans in the UAE include Covid-19 coverage as a fundamental benefit while many others may have it as an add-on cover. This covers the mandatory quarantine stay for 7 to 14 days as well as the cost for RT-PCR tests and medicines, (only if you get tested positively for Covid-19).

  1. Travel-related emergencies
  • Baggage Cover

Lost, stolen, or delayed baggage can cause a lot of problems when on a trip. Baggage cover benefits like lost personal documents, lost baggage or even baggage delay benefits allow you to compensate to either help buy things needed for the trip or the lost time during the trip.

  • Flight-Related Benefits

Flights are often subject to delay, change, and even cancellation. While flight cancellation is not in your control, you can certainly save yourself some costs by getting travel insurance in Dubai. Almost all travel insurance plans in the UAE offer compensation for delays, cancelled flights, missed connections or other flight-related benefits.


  1. Coverage for personal liability
  • Compensation for Third Party damages

Sometimes an emergency might involve damage being inflicted to a third party - person or property - wherein expenses for the same would have to be borne by the insured. To cover this, travel insurance plans also offer a benefit called 'Personal Liability' wherein the insurance company will cover the expenses for third-party damages (this excludes illegal activities).

  1. Assurance in unfamiliar territory or circumstances
  • 27x7 customer support

It assures one of immediate assistance for claims overseas could and prove to be a friend who helps bridge language barriers or geographical constraints. No matter where one is; with a travel insurance policy, they'd be sure of the fact that there is a dedicated team to support you in case of any medication to help access local medical care or travel-related emergency.

 

  • Adverse weather and natural disasters

The weather is something you really have no control over that could lead to travel delays or cause you to cancel your trip altogether. 

  1. Maybe a mandatory requirement

Few countries have made it mandatory for visitors to have travel insurance; you don't want to arrive at the immigration counter and be informed that an absence of insurance has prohibited you from entering the foreign land. There are times visa applications get rejected due to the absence of travel insurance documentation - so before traveling abroad, be sure to check whether or not your destination country has made travel insurance a pre-requisite for visitors.

You can choose from a wide array of travel insurance plans in the UAE.  Whether you are looking for individual travel insurance plans, family travel insurance plans, or group travel insurance plans; you can also select plans based on your destination or number of trips, our team of travel insurance experts will enable you to navigate through these options to select the best one for you and assist you with the documentation to ease the process of buying travel insurance. We also support claims settlement and ensure easy and swift travel insurance claims settlement.

Travel insurance is ultimately a legal contract and not all travel insurance is the same. 

To understand the intricacies and to buy travel insurance, please contact us 

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