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Peter Hayman, Director of P J Hayman Travel Insurance Specialists, comments on the announcement of rises in insurance premiums from AXA; “Recently I predicted that the travel insurance market would start to see sharp rises in the travel insurance premiums, which will be exacerbated by the impending rise in Insurance Premium Tax. It seems that this has now begun.
“This week, the UK’s largest travel insurer, AXA, went public announcing “double digit” rises to be expected on their book of travel insurance. Many of these changes are being implemented prior to the Christmas holiday season. The premium increases are being driven by ever increasing medical claims costs, particularly in the USA, and historically low premiums which are now being addressed.
“I would predict that some scheme holders will have difficulty renewing on competitive terms, particularly at the cheaper end of the market consisting mainly of internet and aggregator products.
“Even allowing for these likely premium increases, travel insurance still represents excellent value for money and is still an essential purchase for any trip. Now more than ever, people should look closely at what they are buying and ensure the policy meets the needs of their trip. Price should not be the only factor in the decision making process – scope of cover and attitude on claims are ultimately the most important things in ensuring that consumers do not end up regretting their decision.”
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
