Lockton to offer parametric travel business protection
Broker Lockton Australia, in partnership with Munich Re, has created a parametric insurance product for the country’s travel sector
The product is designed to cover losses incurred by Australian travel and tourism businesses due to future pandemics and health emergencies.
The parametric solution will pay out compensation in the event that the World Health Organization declares a pandemic. The compensation can then be used to mitigate the impact of losses incurred due to the health crisis, including due to ticket refunds, commission losses and repayments, operational costs such as rent, staff salaries, and other related losses.
The product was inspired by the severe financial impact of the Covid-19 pandemic, which saw many businesses in the sector suffer, often leading to heavy reliance on government support.
However, Rebecca Fleming, Lockton’s Tourism and Travel Manager, argued that such support may not be as widespread in future events of this type. She stated that such government handouts ‘had to be fought for at every turn’.
The World Health Organization (WHO) declared an end to the Covid-19 pandemic on 5 May.
Oliver Cuenca
Oliver Cuenca is a Junior Editor for Voyageur Group, joining in 2021. He writes for both ITIJ and AirMed&Rescue, covering a range of topics including international travel and health insurance, medical assistance provision and air medical transportation. He also serves as Title Editor of the Assistance & Repatriation Reviews. Oliver holds an MA in Magazine Journalism from Cardiff University, as well as a BA in English with Creative Writing from Falmouth University.