Although travel insurance may have once been considered “overpriced and overcomplicated,” brokers who neglect this opportunity may want to reconsider - and soon, since industry and demographic trends are causing the coverage to be sought after more now than ever before.
A new analysis in Time contends that the policies are no longer just a concern for the “over-protected,” but are considered a necessity by many a wide variety of travelers. Canadian advisors have seen this trend materialize firsthand, and only expect the surge in demand to continue.
“Demographics are the ones driving this – with our aging population, the need for this protection grows almost exponentially,” said John Salmond, vice president of sales and marketing, GMS.
This coverage is known to be a valuable asset for Canadians traveling to the United States, where a heart attack could generate up to $500,000 in medical costs.
“Provincial government doesn’t contribute for us when something happens outside of the country,” said Alex Bittner, president, Travel Health Insurance Association of Canada (THIA). “All provinces only contribute an average of 6% of the bill, so if something happens, it puts a huge onus on us.”
In addition to the medical imperative, developments within the aviation industry are causing many consumers to view travel insurance as a prerequisite to long-distance travel.
“We’re seeing a much more interconnected airline industry that’s moving many more passengers. All you need is one little slip in the system, and you have a snowball effect of backups, delays, cancellations, etc,” Salmond said.
In addition, Salmond anecdotally relays that the rise in extreme weather could be creating a host of new risks to air travel stability.
“I can see in my own life that I’ve definitely had more instances of delayed or cancelled flights due to inclement weather,” he said.
As a result, he recommends that brokers advise clients about the intricacies of travel insurance, and warn against a “buy the cheapest helmet” mentality, which could preclude such critical services as air evacuation.
“Unfortunately a lot of people think that by getting the lowest price possible, that’s the best solution for them, but that isn’t always the case,” Salmond said. “A lot of times, there are essential features and benefits that may not be covered.”