For those hoping to jet off from the UK this summer, travel plans may be up in the air.
According to The Independent, “holidaymakers are set to face the worst air traffic control (ATC) issues in a quarter of a century this summer – with 30 million UK air passengers set to be delayed between June and August.”
Additionally, many UK travellers have been advised against travelling to certain countries by the FCDO due to political conflicts, safety concerns, and natural disasters.
Andrew Tolman, head of travel insurance at Allianz Partners UK and Ireland, believes the shift in consumer attitudes post-COVID makes now an ideal time for brokers to offer travel insurance: “With ongoing travel disruptions and heightened awareness of potential risks - such as natural disasters - travel insurance has become a crucial purchase for travellers. This presents brokers with a timely opportunity to meet the growing demand for travel coverage that protects against unforeseen circumstances.”
As summer approaches, holidaymakers are preparing to pay their full holiday balance.
Michael Foord, divisional director at Howden Insurance, stressed that “clients need protection in case of cancellations ahead of their departure date… with longer NHS waiting lists there is more chance that someone may need to cancel their trip if their health has to be prioritised..”
A 2024 Confused.com survey shows that “8% of UK adults have cancelled a holiday because they or someone they were travelling with fell ill.”
The current economic climate also affects travel decisions. The Office for National Statistics reports that “57% of adults reported an increase in their cost-of-living over the past month,” which may drive travellers to secure coverage.
Steve Glennon, account director - global markets, AXA Partners UK&I added: “The overall trend has seen an increase in holiday costs. With cost-of-living challenges for most UK residents, it’s important to have cover in place to recoup costs should something go wrong.”
When tailoring policies, brokers should focus on understanding customer needs. Tolman explained: “brokers should focus on key factors like age, pre-existing medical conditions, travel frequency, and destination risks.”
Insurance can be offered as either a standalone product or as an add-on. Glennon suggests add-ons may be a good general option: “Convenient for customers… can be a more ‘one size fits all’ offering, but distributors must ensure compliance.”
Standalone options work well for those with specific medical concerns. Foord argued: “The complexity of medical screening questions means that travel insurance should be treated as a standalone product, advised by a suitably trained consultant.”
Many holidaymakers remain unaware of the benefits of travel insurance.
According to a Nationwide 2024 survey, “17% admit to never reading the travel insurance terms and conditions,” and “44% have risked travelling without any cover.”
Tolman stressed the importance of educating clients: “By emphasising the financial and logistical repercussions of travel disruptions, brokers can help clients understand the value of securing coverage before they travel and ideally as soon as the trip is booked.”
Education can also be delivered through customer portals or social media, as Glennon suggests: “Providing clear communication in customer documentation and digital content… is an effective way to educate customers about the importance of travel insurance.”
Foord believes using real-life examples is particularly effective: “Using real claim case examples to highlight what can go wrong and the consequences of having inadequate cover – or no cover at all – can help educate clients as to these risks.”
An example Glennon provides is: “Imagine you're on vacation, and your flight is cancelled or delayed for days - without insurance, you'd have to cover extra costs like accommodation and meals out of pocket.”
Brokers, in this role as educators, serve as a traveller’s guide to a well-protected holiday.
As Glennon puts it, “educating customers on the importance of coverage is crucial to ensure they make informed decisions and travel with peace of mind.”
