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25th March 2020
COVID-19–UK travel insurers expect to make record payouts to customers says ABI
Travel insurers expect to pay out at least £275m to travellers due to the Coronavirus according to first estimates out yesterday from the ABI(Association of British Insurers).
ABI’s figures show:
£275m is expected to be paid to customers in Coronavirus related claims. The vast majority will be for cancellations, with some for disruption costs incurred overseas. This is expected to be at least twice as much for cancellation than for the whole of 2019. This is easily more than the highest annual figure for cancellation payouts- £148 million paid in 2010.
400,000 Coronavirus claims are expected, compared to the 294,000 cancellation and disruption claims received in the whole of 2010, the previous highest year on record for such claims.
The Coronavirus pay outs dwarf the £62m cancellation and disruption payments following the Icelandic volcanic ash cloud in 2010.
Mark Shepherd, ABI’s assistant director, head of General Insurance Policy, comments “At this unprecedented time, travel insurers are helping soften the financial blow for thousands of customers whose travel plans have been cancelled or disrupted by Coronavirus. Along with compensation from sources, such as airlines and credit card providers, travel insurers are helping customers get through these tough times.”
ABI travel insurance members have agreed a series of travel insurance pledges to ensure extra support for customers, including having in place contingency plans to deal with valid claims as quickly as possible.
ABI Trends(1,088 articles)