BHTP survey indicates rise in travel insurance purchases

Insurer Berkshire Hathaway Travel Protection (BHTP) has released the findings of its seventh State of Travel Insurance survey, which indicate a significant rise in demand for travel insurance in 2021.

The survey found that 29 per cent of respondents purchased travel insurance most of the times they travelled in 2021, up from only seven per cent of respondents in 2020. Although still less than a third of the total respondents, the change still constitutes a significant year-on-year rise of over 20 per cent.

Forty-one per cent also said that epidemics were a primary motivator for them purchasing travel insurance more frequently – also up from 30 per cent in 2020 – indicating that potential disruption caused to travel by the coronavirus pandemic over the past year, such as travel restrictions, flight disruption and mandatory self-isolation, has caused many travellers to become more cautious when planning journeys.

Thirty per cent of respondents also cited awareness of what travel insurance covers as a reason to purchase in 2021, compared with 23 per cent in 2020 – indicating that due to disruption of travel plans caused by the pandemic, many people have become more educated on the importance and function of travel insurance.

“With widespread flight cancellations and travel disruptions dominating the news recently, it's no surprise that more travellers are buying insurance more often,” said Carol Mueller, Vice President of Berkshire Hathaway Travel Protection. “During these uncertain times, people want to protect their travel investments and health while traveling and are actively educating themselves about coverage that can help with extra expenses that come with common inconveniences.”

The survey also found that behavioural changes adopted by respondents during the pandemic are likely to continue into the next year, with many respondents indicating they will continue to wear masks, wash hands more often and keep a distance from crowds.