Travel insurance claims payouts surge - report

Just how much did travel insurers pay on average?

Travel insurance claims payouts surge - report

Travel

By Josh Recamara

As travel costs rose in 2024, more travelers purchased travel insurance resulting in an 18% increase in paid claims compared with the previous year, according to data released by Squaremouth.

The increase in claims coincided with a 37% rise in payout amounts, which grew from an average of $1,900 to $2,609.

Squaremouth analytics compared travel insurance data from Tin Leg, a travel insurance provider, between January 1 and December 31, 2024.

According to Squaremouth, emergency medical claims became the highest-paid and most frequently claimed benefit for the first time in more than 10 years. Claims under this section represented 27% of all paid claims in 2024. The average payout for emergency medical claims rose 14% to $1,654 from $1,456.

Meanwhile, more than 40% of paid claims in 2024 were related to trips that were cancelled or shortened. This includes claims under the trip cancellation, trip interruption and cancel for any reason benefits.

Claim Type by Benefit

% of Claims

Avg. Claim

Highest Claim

Emergency Medical

27 %

$1,654

$61,976

Trip Cancellation

26 %

$1,456

$50,102

Travel Delay

15 %

$370

$2,655

Trip Interruption

11 %

$2,631

$30,968

Missed Connection

10 %

$395

$2,500

Cancel For Any Reason

6 %

$2,092

$18,375

Baggage Loss

4 %

$174

$1,000

Baggage Delay

4 %

$210

$600

Medical Evacuation

<1%

$17,086

$33,640

Rental Car Damage 

<1%

$1,209

$1,987

 

Despite the Department of Transportation’s 2024 pledge to support travelers impacted by flight delays and cancelations, travelers still relied on travel insurance to mitigate the costs and inconvenience of delays. Paid claims for travel delays rose 15% in 2024, with average payouts increasing 8% compared with 2023, according to the report.

In 2023, the company said the travel insurance sector saw a 30% increase in the total value of claims paid out to policyholders, with payouts averaging $1,900 per claim. Trip cancelations constituted 25% of all claims, while emergency medical claims constituted 24% of all claims.

Related Stories

Keep up with the latest news and events

Join our mailing list, it’s free!