Top Travel Troubles and The Role of Insurance

Sep 10, 2024 | Aon

 

“The best laid plans of mice and men often go awry,” according to Scottish poet Robert Burns. And this idiom can certainly be true of vacation plans: they can change in an instant and for a variety of reasons.

"Although the post-pandemic landscape has altered how people view and utilize travel insurance, the core reasons for filing a claim have not dramatically changed,” said Beth Godlin, president of Aon Affinity Travel Practice. “Travelers still primarily seek coverage for those unexpected circumstances that inevitably arise, like trip cancellations or medical emergencies, underscoring the consistent need for reliable protection during their journeys.”

The team at Aon Affinity reviewed data of why its customers submitted travel insurance claims in 2023 and found four primary reasons claims were filed. They were:

  • Trip Cancellation (71%) – The need to cancel a vacation can arise quickly and unexpectedly for reasons ranging from an unexpected illness to an accident en route to departure or job loss. Coverage for cancellation is one of the primary reasons consumers purchase a travel insurance policy to begin with.
  • Trip Delay (11%) – Stranded passengers filed claims for expenses from a comforting meal and a warm bed to transportation to catch up with a cruise ship that had already set sail without them.
  • Trip Interruption (8%) – There are still risks to travelers and their investment – even after their vacation begins. This benefit is often activated due to a medical emergency that arises during a trip, which forces visitors to return home early. Subject to a policy’s terms, travel insurance can provide reimbursement for the lost investment of a vacation and even some additional expenses to arrange for the trip home.
  • Medical (7%) – Particularly valuable for international travel – where health insurance and Medicare may not provide coverage – medical benefits can help cover unforeseen accidents like getting an x-ray for a broken bone or treating sudden illnesses like the flu.
 

The Aon Travel Takeaway

“It’s always interesting to dig through the data to see why consumers had to file a travel insurance claim,” said Beth Godlin, president of Aon Affinity Travel Practice. “Regardless of the reason, though, what this top claims data really underscores is that travel insurance helps consumers travel smart. It helps protect the financial investment of a vacation and enables travelers to hit the road with peace of mind should the unexpected happen.”

 

All descriptions, summaries or highlights of coverage are for general informational purposes only and do not amend, alter or modify the actual terms or conditions of any insurance policy. Coverage is governed only by the terms and conditions of the relevant policy.

 

 

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