The travel insurance sector saw a 30% uptick in the total value of claims paid out to policyholders in 2023.
Travel insurance marketplace Squaremouth.com said this is a historic peak, with payouts averaging at $1,900 per claim.
Additionally, the amount reimbursed to travelers on average was six times the cost of purchasing a travel insurance policy.
Nearly half of the claims paid in 2023 were for trips that had been canceled or cut short, according to Squaremouth.
Trip cancellation claims alone constituted 25% of all claims, with an average payout of around $5,000. Following closely were emergency medical claims, which accounted for 24% of the total.
Claims related to travel delays and missed connections made up nearly another quarter of the reimbursements.
|
Claim Type by Benefit |
% of Claims |
Highest Claim |
Avg. Claim |
|
Trip Cancellation |
25% |
$49,427.92 |
$4,854.22 |
|
Emergency Medical |
24% |
$48,380.33 |
$1,456.24 |
|
Travel Delay |
14% |
$3,398.75 |
$473.71 |
|
Trip Interruption |
13% |
$58,607.58 |
$2,782.68 |
|
Missed Connection |
9% |
$2,168.26 |
$471.69 |
|
Cancel For Any Reason |
6% |
$25,620.00 |
$2,111.13 |
|
Baggage Loss |
5% |
$1,439.88 |
$208.18 |
|
Baggage Delay |
4% |
$649.88 |
$207.51 |
|
Medical Evacuation |
<1% |
$27,592.34 |
$10,838.83 |
Evacuation claims, although less frequent, emerged as the costliest, with average payouts surpassing $10,000.
Another key trend in 2023 was the increase in reimbursements under the Cancer for Any Reason (CFAR) benefit, which is an optional add-on to some policies.
The average reimbursement for CFAR claims was reported at $2,111. The highest payout reached over $25,000, which is double the maximum payout recorded in 2022.
In a previous report, Squaremouth revealed that the average cost of spring travel this year is $7,719, up 11% from $6,943 in 2023.
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