As the festive season approaches, the team at JMD Ross Insurance Brokers wishes all our valued clients a happy, healthy and safe time with friends and family.
There are holidays ahead but remember there is always someone available at JMD Ross if you need assistance with a claim or policy advice.
It’s likely many clients will be travelling over the break, so chat with your JMD Ross insurance adviser to ensure you have adequate travel insurance to protect you from unforeseen circumstances.
The travel insurance sector is currently facing some significant challenges. Here are several reasons why premiums are increasing and coverage is more difficult to obtain, plus factors insurers take into account when considering policy renewals:
- Your claims history may be fine, but claims made against insurers are at record levels.
- Airlines are struggling to cope with a resurgence of travel and there are numerous lost or delayed baggage incidents. Baggage claims are innumerable.
- Airfares (and therefore claim costs) have increased exponentially.
- Jet fuel prices increased by 60% in 2022, which contributes to more expensive airfares.
- Airlines’ operational costs have hiked up, which also affects fare prices.
- Costs for protective equipment and infection control have increased for the travel and medical industries.
- Evacuation costs are higher.
- More travellers need to be evacuated from their travel destinations because medical facilities are overwhelmed with Covid-19 patients.
- Air ambulance costs have risen 25% to 50%.
- Cancellation claims have increased, particularly for insurers whose policies cover Covid-19-related cancellations.
- Increased muggings and petty theft incidents in lower socioeconomic countries around the globe.
- Inflation adds to both travel and medical costs.
- Emergency assistance providers are experiencing increased cases. One has had four times more assistance cases for every 100 international trips in 2022 compared with pre-Covid-19 travel.
These factors combined are bad news for travellers but consider the alternative if you elect to travel uninsured.
JMD Ross is here to help you mitigate against risks by providing insurance solutions.