As Canada’s vaccine rollout continues and Canada’s travel industry and Canadian travellers look forward to travelling again soon, one trend that’s already revealing itself in the U.S. may soon be repeated here in Canada.
New data released by American online insurance aggregator InsureMyTrip shows a big spike in purchases of ‘Cancel for any Reason’ travel insurance.
Last year, in the early days of the pandemic and before insurers created COVID-specific policies, the perils of incomplete travel insurance coverage were highlighted, especially with regards to trip cancellations.
InsureMyTrip points out that, “Traditional travel insurance does not offer cancellation coverage for fear of travel, whether related to COVID-19 or not. Cancel For Any Reason is required.”
As Americans begin to book travel again, many seem to be taking that lesson to heart.
The company reports that travelers seeking travel insurance with Cancel For Any Reason coverage has doubled since JAN 2021, according to the latest data, with 8 per cent of travellers opting into CFAR at the beginning of the year, compared to 16 per cent in APR.
The sweet spot for selling CFAR coverage to travellers booking trips seems to be people in their late 40’s. The company reports the average age of policy purchasers upgrading to CFAR coverage ranged from 46 to 49 years old each month.
Many insurers advise upgrading insurance to CFAR for both domestic and international trips.
As InsureMyTrip points out, “CFAR offers the most trip cancellation flexibility. Full terms of coverage will be listed in state-specific policy. If eligibility requirements are met, reimbursement is typically up to 50-75 percent of the pre-paid non-refundable trip cost.”
“Fully vaccinated people are excited about the possibility to reunite with family members and fly again,” says InsureMyTrip Vice President of eCommerce Cheryl Golden. “We also realize that travel guidance — both in the US and abroad — is subject to change. Due to this uncertainty, we do strongly recommend that travelers consider CFAR to be better prepared for the unexpected.”