Travel insurance policy demand jump by 50% between January and June

Demand for travel insurance policies jumped 50% in the first half of the year compared to the same period in 2015, Gulf Times reported citing industry sources.

At the same time, demand is expected to increase further for the rest of the year following the spate of recent terror attacks in France, Germany and other European countries, a popular travel agency said.

Depending on the policy, travel insurance provides a wide range of benefits such as reimbursement of medical treatment, coverage for lost or delayed baggage or personal belongings, and compensation for losses due to a delayed or interrupted flight, among many others.

A leading insurance company in Doha said in 2013, travellers bought travel insurance policies as a requirement to visit Schengen areas like Spain, Italy, Paris, Germany, and Sweden.

“At that time, we were processing a minimum of three policies per day. In a year, that would translate to more than 900 but that excludes travel insurance for families,” the source said, adding that the same demand was recorded in 2014.

He noted that demand increased 20% to 30% in 2015 compared to the previous year but he stressed that for the first half of 2016, there was already a 50% surge in travel insurance policies.

“Many people overlook the importance of owning a good travel insurance policy; certain illnesses or accidents could happen during trips, and these incidents are a big hassle for a traveller while he or she is in a foreign country. But recently, we’ve observed that many people are now aware of the advantages of having travel insurance,” he said.

He also said some Asian countries and non-Schengen areas have also adopted the policy of requiring travel insurance, the likes of Turkey, Australia, and Malaysia, and for “long drives” or cross-border trips to Saudi Arabia, Jordan, Bahrain, and Dubai.

“But generally, people get travel insurance for peace of mind and security. However, some countries like Russia, Maldives, and the UK are now requiring tourists to bring travel insurance.

“Schengen areas like Spain, Italy, the Netherlands, France, and Switzerland are quite strict when it comes to travel insurance,” he stressed, adding that around 70% of Qataris and 30% of expatriates studying in Europe are required to have travel insurance.

For the first six months of 2016, a leading travel agency in Doha said demand for travel insurance increased 20% to 30% compared to the same period last year.

“Some travellers are not applying for travel insurance, unless it’s required by the country they’re visiting,” a staff said.

But he noted that due to terror attacks in Europe, the travel agency is expecting a 40% to 50% increase in demand for travel insurance for the rest of the year.

He said the top European holiday destinations for Qataris are London, Germany, France, Switzerland, Austria, and Italy.

Since 2015, Europe was plagued with attacks such as the Charlie Hebdo attack in January and the Paris attacks in November. This year, the bombings in Brussels and the Nice terror attack in France and similar incidents in Germany have undermined security and safety in European countries.

Courtesy: gulf-times.com