Demand for CFAR cover rises as travellers seek greater flexibility
New marketplace data suggests geopolitical uncertainty and changing personal circumstances are driving growing interest in flexible trip cancellation protection
Interest in cancel for any reason (CFAR) travel insurance has continued to grow in 2026, with new data suggesting travellers are increasingly seeking greater flexibility amid geopolitical tensions and broader uncertainty.
US travel insurance comparison platform Squaremouth said it handled more than 2,700 customer enquiries about CFAR cover during the past three months, representing just over a quarter of all customer service interactions.
The findings build on the company’s first-quarter Travel Insurance Trends Report, which recorded a 29% year-on-year increase in searches for CFAR policies.
Unlike standard trip cancellation insurance, which reimburses travellers only when they cancel for reasons specifically covered under the policy, CFAR upgrades typically allow travellers to cancel for reasons outside those listed in the policy terms.
Reimbursement is generally lower than under standard cancellation cover, with many products returning up to 75% of eligible prepaid, non-refundable trip costs.
Squaremouth’s analysis found that concerns about geopolitical instability were the most frequently cited reason for customers enquiring about CFAR, accounting for 33% of calls where travellers identified a specific concern.
Many customers referenced ongoing conflicts and regional instability when explaining their desire for greater flexibility before departure.
A further 27% cited general uncertainty about future personal circumstances, while 21% were concerned that work commitments or employment changes could prevent them from travelling.
Worries about elderly or unwell family members accounted for 11% of enquiries, while 8% of callers said previous claim disputes or denials had influenced their decision to consider broader cancellation protection.
The findings illustrate how customer purchasing behaviour continues to evolve beyond traditional concerns such as illness or injury. Geopolitical events, changing employment patterns, and greater awareness of policy exclusions are increasingly shaping demand for enhanced cancellation options.
However, CFAR upgrades typically come at a significantly higher premium than standard travel insurance, reflecting the broader scope of cancellation flexibility they provide. As a result, insurers and brokers continue to emphasise the importance of matching cover to individual travel risks rather than assuming enhanced cancellation benefits are appropriate for every trip.
This week, Trawick Holdings unveiled a new non-insurance travel cancellation product that allows eligible US travellers to cancel trips for almost any reason.