2023 Travel Insurance Outlook: Hello Millionaires

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As travel recovers, so will travel insurance purchases. The pandemic has boosted travel insurance awareness and sales over the past few years, but it’s not projected to slow down any time soon. travel insurance According to travel insurance comparison provider Squaremouth, 2022 sales increased 122% compared to 2021.

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Top destinations for 2023: Europe gaining momentum

Mexico, Italy, Israel, Bahamas and France are the top spots travelers plan to visit in 2023, according to Squaremouth travel insurance sales data.

Additionally, an analysis of travel insurance sales since 2019 shows an increase in travel to key European destinations such as Italy, the United Kingdom, France and Spain, Squaremouth spokesman Megan Moncrief said. I’m here. “Those countries expect her to regain popularity in 2023,” she says.

Overseas travel revived, domestic travel spending increased

Americans are keen to travel abroad in 2023. International travel has returned to pre-pandemic levels, and Moncrief predicts this will continue into his 2023.

It’s no surprise that at the height of the pandemic, people preferred to stay closer to home and countries with looser travel restrictions. for example, Travel to the Turks and Caicos Islands It was popular during the pandemic because travel restrictions are less stringent.

Most European countries eased or lifted Covid restrictions last year, making them more attractive to international travelers.

Sales of overseas travel insurance

Average travel costs for U.S. travelers have increased each year since 2019. In 2019 he rose from $2,896 to $4,245 in 2022. This is an increase of 46%. Based on this trend, travelers are likely to continue spending more on domestic travel in 2023, Moncrief said.

However, rising average domestic travel costs do not necessarily mean that people are taking more luxurious vacations. ” says Moncrief. “Things are generally costing more.”

Sales of domestic travel insurance

Rapid increase in baby boomer travelers

More baby boomers will have travel insurance in 2022 than they did in 2021, indicating a resurgence in travel for the ‘gray tsunami’ generation. seven corners, travel insurance companies. The number of Seven Corners travel insurance plans purchased by people born between 1946 and 1964 increased nearly 54% year-over-year.

“What we saw was that millennials were younger and less worried about Covid, so they were less reluctant to travel during the pandemic,” says Borden. “But baby boomers, after going so long without traveling, now feel safe and have the time and money to make a big comeback.”

Baby boomers are also planning trip to europe After favoring tropical beach destinations during the pandemic, Borden says, the top two destinations for American baby boomers in 2022 were Italy and the United Kingdom, according to sales data from Seven Corners. In 2021, Mexico, Turks and Caicos and Costa Rica were the most popular destinations. Italy where he was 4th a year ago.

While the UK did not rank among the top five destinations in 2021, it was the number one destination for US baby boomers in 2019. The change shows they are slowly returning to some of their pre-pandemic travel habits, Boden said.

COVID-19 remains top concern for travel insurance, but trending downward

Travelers are still worried about Covid.discover Covid travel insurance Top concerns for American travelers purchasing travel insurance in 2019, 2021 and 2022 are:

In 2022, 31% of travel insurance buyers searched for a travel insurance plan that included Covid coverage and purchased a plan that covered Covid-related issues. This compares to 9% of those who did for emergency medical expense coverage. Still, the trend is likely to slow down in 2023, said Squaremouth spokesperson Steven Benna.

“This is the first time in October that searches for policies covering Covid have decreased since Covid emerged in March 2020,” Benna said. “Covid remains the number one concern, but it is declining.”

Benna also travel medical insuranceurgent medical evacuation insurance, travel cancellation insurance When Trip Interruption Travel Insurance Starts to rise to approach pre-pandemic sales levels.

Covid remains the number one concern among travelers, but as flight cancellations and flight delays increase, the benefits of travel delays are poised to gain popularity.

“Travel delays are becoming a more common concern, and purchases reflect that. This trend will continue in 2023,” said Moncrief.

travel delay insurance We will pay for any necessities you may need in the event of a delay for the reasons stated in the policy. For example, if your flight takes off late because of a storm, you’ll be covered for meals, hotel rooms, and transportation during the delay.

‘Cancel for any reason’ Travel insurance remains popular with baby boomers

“Cancelled for Any Reason” (CFAR) Travel Insurance is also trending downward, and Bena predicts sales of CFAR popularity will approach pre-pandemic levels.

“Cancellation for any reason” is an upgrade available on some policies that expands your ability to request travel cancellation. If a CFAR applies, you may cancel for any reason not listed in the basic policy. This feature provided a suitable escape hatch for travelers seeking maximum flexibility during the pandemic.

CFAR sales surged from 5% in 2018 to 21% in 2020 during the height of Covid. In 2022, only 7% of travel insurance plans included his CFAR.

Percentage of Travel Insurance Plans Sold in CFAR

CFAR also increases the cost of travel insurance by an average of 50% due to the wider coverage.

Seven Corners’ Borden says baby boomers, who generally have more disposable income than other age groups, could be an exception to the decline in CFAR sales over the next few years. At Seven Corners, he saw a 24% increase in CFAR coverage purchased by baby boomers in 2022.

‘Interrupted for any reason’ travel insurance is in the spotlight

“Interrupted for any reason” (IFAR) travel insurance It is a relatively new product. IFAR is an upgrade available on some travel insurance policies that allows you to return early from your trip for any reason and receive a partial refund. IFAR benefits offer 50% or 75% coverage for non-refundable travel expenses, depending on policy.

Also, you must start your trip by a specified time, such as 48 hours or 72 hours. An average of 3% to 10% is added to the cost of travel insurance.

IFAR is not as widely available as CFAR, but is expected to gain traction among travelers from 2023 onwards.

“IFAR will continue to grow in popularity as people learn about it,” Borden said. “It’s relatively cheap, not as expensive as CFAR. People will want extra protection because it costs a few extra dollars.”

Long waiting times to purchase travel insurance

People are buying travel insurance much closer to their departure date than in years past.

“We can see that people are waiting longer to buy travel insurance. It takes around 50-60 days before departure. We expect this trend to continue for trips planned in 2023.” says Moncrief.

Seven Corners sales data shows baby boomers in particular are buying plans just 58 days before their 2022 departure date. That’s half of his 2019 report that baby boomers bought travel insurance an average of 115 days before their trip. Travel, says Boden.

This trend is unfortunate because there are a lot of Advantages of buying travel insurance right after you book your tripIt is wise to purchase a travel insurance plan within 15 days of making your first travel deposit. That way, you can maximize the length of time your cancellation benefits apply. And don’t miss out on optional upgrades like CFARs and IFARs that need to be purchased as soon as you deposit your first trip.You can also qualify for Pre-Existing Medical Condition Exclusion Waiver If you purchase travel insurance immediately after booking your trip.

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