Navigating Travel Challenges: The Importance of Insurance Amid Air Traffic and Economic Concerns

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Travel Plans in Turmoil: UK Air Traffic and Travel Warnings

As summer approaches, UK travelers face significant challenges with their holiday plans. Reports indicate that this summer could witness the most severe air traffic control disruptions in 25 years, potentially affecting 30 million UK passengers with delays from June to August. Furthermore, the FCDO has advised against traveling to several countries due to ongoing political unrest, safety issues, and natural disasters.

Andrew Tolman, head of travel insurance at Allianz Partners UK and Ireland, highlights how post-COVID consumer behavior shifts present a unique opportunity for brokers to offer travel insurance. “With ongoing travel disruptions and heightened awareness of potential risks – such as natural disasters – travel insurance has become a crucial purchase for travelers. This presents brokers with a timely opportunity to meet the growing demand for travel coverage that protects against unforeseen circumstances,” he explains.

The Financial Implications and Health Concerns Impacting Travel Decisions

As travelers prepare to pay their full holiday balances, Michael Foord, divisional director at Howden Insurance, emphasizes the need for protection against cancellations prior to departure. “With longer NHS waiting lists, there is more chance that someone may need to cancel their trip if their health has to be prioritized,” he noted. A 2024 survey by Confused.com discovered that “8% of UK adults have cancelled a holiday due to illness affecting them or their travel companions.”

The current economic climate also shapes travel decisions. According to the Office for National Statistics, “57% of adults reported an increase in their cost-of-living over the past month,” which may prompt travelers to seek insurance coverage. Steve Glennon, account director of global markets at AXA Partners UK&I, adds, “The overall trend has seen an increase in holiday costs. With cost-of-living challenges for most UK residents, it’s important to have cover in place to recoup costs should something go wrong.”

Tailoring Insurance Policies to Meet Traveler Needs

Brokers must tailor policies to address customer needs, focusing on factors like age, pre-existing medical conditions, travel frequency, and destination risks, according to Tolman. Insurance can be offered as either a standalone product or an add-on. Glennon suggests that add-ons might be convenient: “Convenient for customers… can be a more ‘one size fits all’ offering, but distributors must ensure compliance.” For individuals with specific medical concerns, standalone options are preferable. Foord argues, “The complexity of medical screening questions means that travel insurance should be treated as a standalone product, advised by a suitably trained consultant.”

Educating Travelers on Insurance Benefits

Many travelers remain unaware of the benefits of travel insurance. A Nationwide 2024 survey reveals that “17% admit to never reading the travel insurance terms and conditions,” and “44% have risked traveling without any cover.” Tolman stresses the importance of educating clients: “By emphasizing the financial and logistical repercussions of travel disruptions, brokers can help clients understand the value of securing coverage before they travel and ideally as soon as the trip is booked.”

Education can be effectively delivered through customer portals or social media, as Glennon suggests: “Providing clear communication in customer documentation and digital content… is an effective way to educate customers about the importance of travel insurance.” Foord believes using real-life examples is particularly effective: “Using real claim case examples to highlight what can go wrong and the consequences of having inadequate cover – or no cover at all – can help educate clients as to these risks.”

Glennon provides a relatable scenario: “Imagine you’re on vacation, and your flight is cancelled or delayed for days – without insurance, you’d have to cover extra costs like accommodation and meals out of pocket.” In their role as educators, brokers act as guides, ensuring travelers embark on a well-protected holiday. As Glennon puts it, “educating customers on the importance of coverage is crucial to ensure they make informed decisions and travel with peace of mind.”