Travel Insurance Blog
Wednesday, May 16, 2012
- 23
Apr
2010 -
Volcanic Ash Spews Opportunity, Costs for Insurance Industry
Filed Under: Blogging
The volcano in Iceland has spewed more than just ash. It has dramatically changed the way that many people look at travel insurance, especially trip cancellation insurance. The predominant attitude among people who did not purchase travel insurance unless specified by law was simply, “What are the chances? I’ll take them!”
Now, however, travelers are realizing the extent to which international travel depends on many events and things beyond our control.
The international insurance industry is in a funny situation—while one hand, the industry is expecting to pay out a substantial amount of money and hence rack up losses; on the other, there are strong indications that more people will look for insurance henceforth. As we monitor the situation closely, there will doubtless be different viewpoints that support and oppose insurance claims. Already, we are able to glimpse a little bit of that, with some insurance companies considering the volcanic eruption as an Act of God and others as inclement weather.
What can you, as a traveler, take away from the current situation? Looking at how the claims get resolved, and knowing which companies and plans actually settled the claims might go a long way in knowing how reliable a company is. Indeed, this might even be the perfect litmus test for travel insurance companies!
Travel tip: Compare the ratings of a company with their stand on the volcanic ash issue. You might note a correlation!