Travel insurers are expected to pay out at least £275 million to travellers due to the Coronavirus according to first estimates out today from the Association of British Insurers.
ABI’s figures suggest £275 million will be paid to customers in Coronavirus related claims with the vast majority attributable to cancellations, with some for disruption costs incurred overseas.
This is expected to be at least twice as much for cancellation than for the whole of 2019 and easily more than the highest annual figure for cancellation payouts – £148 million paid in 2010.
400,000 Coronavirus claims are expected, 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 payouts dwarf the £62 million cancellation and disruption payments following the Icelandic volcanic ash cloud in 2010.
“At this unprecedented time, travel insurers are helping soften the financial blow for thousands of customers whose travel plans have been cancelled or disrupted by Coronavirus,” said Mark Shepherd, ABI’s Assistant Director, Head of General Insurance Policy.
“Along with compensation from sources, such as airlines and credit card providers, travel insurers are helping customers get through these tough times.”