Travel insurance companies to pay out £275 million
British travel insurers say they will pay out at least £275 million to travellers due to the coronavirus – the highest payout on record.
Until now, the highest figure for cancellation payouts was the £148 million paid in 2010 when the Icelandic volcanic ash cloud hit.
The figure was released today by the ABI (Association of British Insurers), which said the vast majority of payouts will be for cancellations.
It said companies are expecting 400,000 coronavirus claims, compared to the 294,000 cancellation and disruption claims received in the whole of 2010, the previous highest year on record for such claims.
The coronavirus pay-outs dwarf the £62 million cancellation and disruption payments following the 2010 ash cloud.
The ABI said its members have agreed a series of travel insurance pledges to ensure extra support for customers, including contingency plans to deal with valid claims as quickly as possible.
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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