Flight canceling hurricanes. Road closing wildfires. Cruise altering droughts. Travel is certainly not immune to the impacts of climate change. As industry leaders evolve their strategies to address worldwide growing climate risks, we wanted to share some relevant data and insights from the Aon Weather, Climate and Catastrophe Insight report, which looks at 2022’s major weather events and their costs as well as best practices for helping mitigate the risks. As weather patterns change, it’s incredibly important for travel suppliers to think critically about the travel protection they’re offering their customers. This report helps them do just that by providing analysis and expertise that can help them understand climate risks, inform better decision making, and ultimately, promote resilience.
Here are two important learnings:
- From earthquakes to wildfires to drought, there were at least 421 individual natural disasters, which was above both the average (396) and median (398) since 2000.
- Total economic losses from natural disasters were estimated at $313 billion, which was 4% above the 21st century average.
The role of travel insurance
No doubt that climate change impacts the frequency and severity of costly weather events across the globe. While we can’t change the weather, we can better prepare for it, and travel insurance is a big piece of that. This report underlines the importance of customizing travel protection. As a travel supplier, are you offering relevant products that are tailored to the destinations you’re traveling to or operating in, understanding they could be impacted by adverse weather events? Are your travel protection offerings giving your customers the confidence and peace of mind to book their trip or experience? Consumers are looking for travel insurance that can help protect their financial investment, health and belongings, no matter what the forecast brings. It’s a good idea for travel suppliers to review their travel protection program on an annual basis to help ensure it’s meeting customers’ shifting needs.
The role of travel insurance brokers
Remember, travel insurance is rapidly evolving – just like the weather. Travel insurance brokers can help travel suppliers understand how these emerging weather risks are impacting their customers and help ensure their programs are responding to their needs. These brokers foster holistic relationships, leverage sophisticated data and analytics, and tap into deep knowledge of the markets and industries served to deliver tailored solutions.
The Aon Travel Takeaway
“The impact of severe weather is tangible, immediate and measurable, as this data makes crystal clear,” said Beth Godlin, president of the Aon Affinity Travel Practice. “I encourage travel suppliers to continue evaluating their travel protection to help ensure it’s responding to climate change, so they can keep pace with customers’ everchanging needs.”