Page 15 - Insurance Times June 2019

International

The Global Insurance ABTA's new research paves way for travel insurance
A notable proportion of British holidaymakers may travel uninsured when they
Industry's $6 Billion Exis-
head off overseas for their summer holi-
tential Threat: Coal Power
day this year, says a new research from
Insurance companies experience se- the Association of British Travel Agents
vere damage
(ABTA). The research found that as many
from climate
as 38 per cent of Brits planning to go
change, yet
abroad this summer do not yet have
they continue
travel insurance, putting themselves at
insuring and
major - and entirely unnecessary - risk.
funding the
biggest cause of those damages in- The research also found that 21 per cent of surveyed holidaymakers have trav-
stead of preventing the "existential elled uninsured over the last year; of these, 37 per cent said that travel insur-
threat" of inaction on climate policy. ance was not necessary, and 28 per cent said that while they were aware of
Extreme weather driven by climate the risk, they were happy to take it. Notably, of those who said that they have
change is creating record losses for been required to pay out while on holiday because they were either uninsured
insurers and their customers, and if or underinsured, 34 per cent said that they had to spend between £500 and
left unchecked, those losses could £4,000.
triple within 30 years. But insurers
ABTA has partnered with the UK Foreign and Commonwealth Office (FCO) to
are a lifeline for coal-fired power -
spread awareness among travellers of the importance of insurance, encourag-
the single largest source of green-
house gas emissions - and without ing them to purchase it as soon as they book their trips, so that they can be
the $6 billion annual insurance mar- 100-per-cent certain of peace of mind from booking to their departure to their
ket many existing coal plants would return.
have to close while most new plants
"Most people enjoy trouble-free holidays overseas," said Julia Longbottom, the
would not be built.
FCO's Director of Consular Services. She added, "However, I am concerned by
Forward-looking insurance compa- these new figures showing that many British holidaymakers continue to travel
nies have begun waking up to this
without insurance. The risks are very clear. It is important to know that the FCO
contradiction and exiting the coal
cannot help fund medical bills if you or a family member are taken ill or
industry, but U.S. insurers lag far
hospitalised when abroad. Make sure you take out a travel insurance policy that
behind the rest of the world, and
meets your personal needs so you know you are covered should anything hap-
how they respond could impact the
pen, and you can focus on having a relaxing holiday."
global economy. As regulators con-
sider the risks of climate change, ABTA also noted a number of high profile incidents that received media atten-
insurance companies should shift tion in the last year, including an uninsured Welsh holidaymaker who died in
from insuring the biggest cause of Dubai and whose family were left with a bill of £30,000; and an insured woman
climate change to ensuring a safe who failed to disclose a pre-existing medical condition before a trip and was
climate future. subsequently left with a bill of £300,000 for medical treatment in Mexico.

The Insurance Times, June 2019 15