'Travel insurers need to come back with better policies'

We need to continue improving policies, as well as the information being given to consumers at point of sale, to provide clarity about the various risks we are insuring them for. Travel insurance is a complex product with a lot of different covers, although cancellation and medical expenses covers remain key in the Covid era.

But customers are going to have to expect to pay more for travel insurance. Prices are hardening because Covid, and the resulting high demand for care beds, has created operational problems in some hospitals. This, in turn, has increased the costs of overseas medical care. Medical assistance partners are also finding it more difficult to arrange for medical escorts or air ambulances to fly people home due to ongoing testing requirements and entry restrictions, which vary widely across different countries.

There will no doubt continue to be fallout from the pandemic and, of course, we now have to consider the potential impact of the situation in Ukraine on broader travel prospects – but as long as the travel insurance industry continues to respond quickly and look after its customers, the future for this sector looks bright.

Dan Baldwin is head of personal lines at MGA Avid Insurance, specialising in travel insurance.