Should I advise clients to buy terrorism coverage before travelling?

Should I advise clients to buy terrorism coverage before travelling? | Insurance Business

Should I advise clients to buy terrorism coverage before travelling?
Travel isn’t what it was 20 years ago. These days, there’s a much greater frequency of terrorist events, natural disasters and political unrest in the news - and this is creating more uncertainty for travellers than ever before.

The travel climate has contributed to a heightened awareness for the need for travel insurance, which is a silver lining for the industry. However, in such an unstable world, is it worth advising customers to buy additional terrorism coverage in a travel policy?

Search and compare product listings for insurance against Terrorism from specialty market providers here

That depends on the individual, how much of a concern it is for them and where they are travelling to, according to Dan Keon, senior director, market management at Allianz Global Assistance.

“The way terrorism coverage typically works is that it may be a covered reason for trip cancellation,” Keon told Insurance Business. “Generally, when it comes to medical coverage, there isn’t specific terrorism coverage to buy. If someone was injured in a terrorist event, the medical benefits of a normal travel policy would work in the same way they would work for any other medical emergency.”

Growing concerns about travel safety have heightened the need for customers to read and understand the nuances of their insurance policies to ensure everything is covered in case an event occurs. This is something brokers can help with.

“If people are concerned about terrorism, they should talk to their broker about it and confirm that it’s part of their coverage,” Keon commented. “But as far as risk goes when you travel, the likelihood of a terrorist event - while it does exist and may be higher than it was 20 years ago – is still very small compared to the risk of a medical emergency like an accident or an unexpected illness.

“So, what’s most important is that people have some form of medical coverage in place before they travel. Anything over and above that is additional coverage that can be great to have but is not essential.”


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