Travel insurance coverage for coronavirus available – but limited
With the coronavirus outbreak declare a global pandemic by the World Health Organization.
Travel insurance coverage for covid-19 is limit, according to comparison site Squaremouth.
As of Wednesday, three travel insurance for Covid-19 providers on Squaremouth were still offering policies.
That may include cancellation coverage for travelers who contract the virus, or are quarantine & unable to travel as plan.
Those policies may also include interruption benefits for travelers who contract the virus while on a trip.
Also, as of Wednesday, four providers on Squaremouth were offering emergency medical.
Medical-evaluation benefits to travelers who contract the virus while traveling.
These policies may cover medical expenses incur if a traveler gets the virus on their trip & may cover medical transportation back to the traveler’s home if necessary.
Squaremouth recommends that travelers purchase a “cancel for any reason” policy.
However, there are limitations, Squaremouth said.
This time-sensitive upgrade must be purchase within 21 days of the first trip booking and typically costs 40% more than a standard policy.
A cancel for any reason policy can reimburse travelers up to 75% of their trip cost if they cancel their trip for a reason not otherwise cover in the policy.
Coronavirus outbreak places insurers under the spotlight
As multiple countries grapple with the novel coronavirus infection, individuals and organizations are scrutinizing their insurance policies to see if they are covering the losses caused by the epidemic.
On the ground, several insurers have also launched efforts to support the fight against the infection.
A report by the Financial Times said that while experts agree that many insurance policies may pay out, quite a few policies also have deliberate exclusions for epidemics and pandemics.
The experts added that it is too early to say how much the virus outbreak will cost the insurance industry.
Clients are asking about the extent of their cover, Clarissa Franks of Marsh was quoted as saying in the report. Clients with manufacturing in the key regions of China will be affected.
Three major insurance areas are most likely to feel the full impact of the coronavirus:
Travel insurance, business insurance, and life insurance.
Travel insurance claims are expected to spike, as flights and trips get cancel in the wake of the disease.
Which has infect more than 14,000 people and take the lives of over 300.
Meanwhile, companies whose operations get interrupt and events get cancel will turn to insurance to absorb the financial blow.
The report cite research which tracks the impact of viruses on individual behavior, such as people’s willingness to travel.
The impact of the coronavirus outbreak could be comparable to the SARS outbreak in 2003.
Which caused hotels’ revenue to decrease by around 40%.
The impact of outbreaks such as SARS has cause many insurers to become more cautious in covering such risks.
Lots of policies have had exclusions place in them in the last 10 years due to [insurers’] experience with flu-type outbreaks partner at law firm Clyde & Co.
Life insurers will also have to deal with more claims as the virus’s death toll goes up.
Global head of life and health at Willis Re, life insurers take out reinsurance against ‘extreme mortality’ events such as pandemics.
That many life insurers in Asia weren’t that keen to purchase such reinsurance.
Insurers’ response to coronavirus on the ground
In China, the epicentre and worst-hit country, several insurers have taken action to respond to the health crisis.
In a statement, Allianz, through its wholly-owned Allianz (China) Insurance Holding Co. Announce that it has pledged a RMB4 million (US$570,000) emergency response fund to support frontline workers.
This fund will provide medical supplies, donations, and insurance protection.
Two of the insurer’s operating entities in China, Allianz China Life Insurance and Allianz Jingdong General Insurance, have also launched some temporary emergency measures for the convenience of customers.
These measures include implementing fast track claims process, removing restrictions on designated hospitals and drugs, waiving deductibles, and eliminating waiting periods.
Meanwhile, Ping An Healthcare Diagnostics Centre has dispatched its mobile computerized tomographic (CT) imaging vehicle to Renmin Hospital of Wuhan University.