Airline bookings are on the rise in some regions, driving cautious hopes of a revival in summer traffic, but also raising fears among tourist destinations of getting hit with bills should vacationers become stranded by the virus.
But a surge in demand for COVID-19 coverage also means insurers could be on the hook for big payouts should another wave of infections lead to large numbers of cancellations or tourists getting sick. Jeremy Murchland, president of Indiana-based travel insurance company Seven Corners, said travelers are now “more likely to insure their trips,” as more countries require COVID-19 coverage.
For example in June, Seven Corners introduced an optional medical travel plan with coverage for coronavirus expenses, Murchland said. By year’s end, the product with coronavirus coverage generated about 80% of total medical travel plan sales. Jordan is evaluating whether to require a mandatory flat fee for visitors as part of a program from Global Rescue and the Global Travel and Tourism Resilience Council, said council co-chair Taleb Rifai. The program, which costs up to $100 per person, covers certain disasters and illnesses like COVID-19.It is not clear how coverage demand will evolve as many more people become inoculated against the coronavirus with vaccines.