Who doesn’t love a cheap flight? It’s hard to argue that budget airlines have made the world much more accessible for most of us. However, frustrations can certainly mount when cancellations come in – and the insurance sector has been left out of pocket as a result.
According to new figures released by the Association of British Insurers (ABI), travel insurers forked out an eye-catching £385 million on claims last year – making it the highest payout level since the Icelandic volcanic eruption of 2010 which saw the figure hit £455 million. Indeed, according to the figures there were 510,000 travel insurance claims over 2017 – that’s more than one claim per minute.
So, what has been the cause?
A report by The Telegraph points the finger of blame at a rise in trip cancellations – the publication highlighting Ryanair in particular. It pointed to its September 2017 cancellations as a focal point – noting that the low-cost airline cancelled a total of 700,000 bookings during the period with the action partly blamed on a pilot rostering management failure.
In total, cancellations accounted for £145 million in successful claims, a leap from £130 million during 2016. Another prime reason however, is that Monarch went bust during October – this in turn left 110,000 travellers stranded while abroad and prompted the largest peacetime repatriation in British history.
