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Bills in the tens of thousands of dollars, hospitals that demand payment upfront, and ambulance costs for repatriation to Canada: horror stories from Canadian travellers hit with medical emergencies in the US and abroad demonstrate the need for travel insurance, if they don’t scare travellers from leaving our borders completely.
So why are 43% of travellers aged 18 to 34 not getting travel insurance, according to a study by Allianz Global Assistance?
“When we look at our claims experience, the reality is that medical emergencies can happen to anybody at any time, regardless of age, how long they’re travelling for, or where they’re travelling to,” Dan Keon, vice president of market management at Allianz, told Insurance Business.
Yet young people don’t see this insurance as necessary because they’re in good health or haven’t had to go to the doctor at home for a while. In the meantime, other travellers – not just the young ones – may not think the risk is significant enough to warrant the extra cost, especially if they’re going on a shorter trip, said Keon.
But emergencies are just that. Unexpected health issues can hit a traveller at any time and with little warning.
“The situations that can result in the highest claims are just those unexpected emergencies, things like appendicitis or a slip and fall that results in concussion,” said the VP, who’s seen exorbitant bills from travellers during the claims process.
He points to a 15-year-old traveller who was in a US hospital for one night because of appendicitis and ended up with a bill of US$69,000. Another 24-year-old traveller was admitted for one night because they needed emergency surgery for a total of US$28,000, while a 21-year-old admitted to an American hospital for four days because of a fever, which can strike anyone, had a bill of US$20,000.
“Clearly, there is a need to increase awareness of the importance of travel insurance among young travellers,” said Keon, especially as medical policies often also include a benefit where travellers in remote areas with medical emergencies will have arrangements made for them by their insurance to cover the cost of getting them to a hospital with the right equipment and expertise.
“We have a wide range of products available through different distributors, through travel agents and brokers as well as some banking partners, but all of those products will include a medical component if it’s a travel medical policy,” said Keon. In fact, this type of policy is something the government recommends all Canadians have when travelling.
With a large portion of millennials travelling without insurance, educating people on the need for it becomes an important part of the insurer’s job.
“One of the key ways that insurers can communicate the importance of insurance is simply presenting ‘what if’ scenarios,” said Keon, “so asking the individual, what if you were to experience a medical emergency while travelling? Would you know how to find treatment, would you have funds available to pay for care, and what would you do if the hospital you were at wouldn’t accept you as a patient if you couldn’t provide payment upfront or didn’t have insurance?”
Showing clients the cost comparison of a one-night hospital stay in the US, which averages US$10,000, versus the cost of getting travel insurance for one week is another helpful approach.
“Medical coverage can cost as low as $25 to $30, so it is a very small price to pay when you consider the risk,” said Keon, “and it’s much better to be travelling and have it when you need it than to find yourself in a situation where you need it and don’t have it.”
