Travel Insurance — Record Payouts in 2023

Spring has arrived and summer is on its way. That means travel. Most of us — if we’re paying attention to how difficult travel is these days — will purchase travel insurance.

Problems do arise.

These days — according to statistics compiled by the travel insurance marketplace, Squaremouth.com — travel insurers are becoming victims of the same issues faced by travelers. It says travel insurers saw a 30% jump in the amount paid for claims filed by policyholders in 2023.

Not only that, but the amount being reimbursed average six-times the cost of the purchase of a policy.

By the way, this year the average cost of travel is $7,719. That’s up 11% from the $6,943 average in 2023. So if statistics hold, 2024 could be a tough year for travel insurance companies, too.

Here is a list of the claims filed last year, the average amount of the claims, the highest claim paid per category and the percentage of claims filed in a category.

1. Trip Cancelation

Percent of claims: 25%

Highest claim: $49,427.92

Average claim: $4,854.22

2. Emergency medical

Percent of claims: 24%

Highest claim: $48,380.33

Average claim: $1,456.24

3. Travel delay

Percent of claims: 14%

Highest claim: $3,398.75

Average claim: $473.71

4. Trip interruption

Percent of claims: 13%

Highest claim: $58,607.58

Average claim: $2,782.68

5. Missed connection

Percent of claims: 9%

Highest claim: $2,168.26

Average claim: $471.69

6. Cancel for any reason

Percent of claims: 6%

Highest claim: $26,620.00

Average claim: $2,111.13

7. Baggage loss

Percent of claims: 5%

Highest claim: $1,439.88

Average claim: $208.18

8. Baggage delay

Percent of claims: 4%

Highest claim: $649.88

Average claim: $207.51

9. Medical evacuation

Percent of claims: 1%

Highest claim: $27,592.34

Average claim: $10,838.83

Source link: Insurance Business America — https://bit.ly/43y880a