Travel insurance demand surges as conflict drives 50% sales jump

Yonder Travel Insurance has reported a 50% increase in sales and a 95% rise in quotes for cancel for any reason (CFAR) coverage as ongoing conflict in the Middle East contributes to global travel uncertainty. The US company says travellers are increasingly seeking broader protection against disruption, airline instability, and rising costs beyond standard cancellation cover.

CFAR demand reflects a shift in traveller behaviour, as standard policies typically exclude ‘fear of travel’ and war-related events. CFAR allows travellers to cancel for personal reasons, including perceived safety concerns.

“In today’s unpredictable world, the most critical part of your planning happens in the first 21 days of making your first booking or deposit. If you wait until the last minute, you lose the ability to add CFAR coverage for your trip,” explained Terry Boynton, President of Yonder Travel Insurance.

He added that while the current conflict was a known event and generally excluded, secondary impacts continue to affect the market, including airline financial instability and bankruptcies. He said travel insurance remained key for forward planning.

Experts also highlight growing demand for enhanced travel delay cover and 24/7 emergency assistance, with travellers encouraged to prioritise higher limits to manage disruption costs and ensure access to real-time medical and security support.

New Squaremouth data has revealed that Caribbean cruise travellers are lagging behind other regions in purchasing CFAR cover, despite the rising global uncertainty and recent travel disruptions.