Silicon Valley insurtech says travel insurance companies are obligated to educate this market.
SANTA CLARA, CALIF. – The United States Travel Insurance Association (USTiA) recently released the results of travel insurance purchases by U.S. travelers from 2016 to 2018 and found that only six percent of American travelers purchase travel medical insurance. The International Travel Insurance Journal (ITIJ) reported from the study that while overall purchases of travel insurance by U.S. citizens increased more than 40 percent, 94 percent of coverage purchased was exclusively for trip cancellations and trip interruptions, leaving the bulk of travelers at risk of incurring huge medical costs abroad should they become seriously injured or ill.
“Global travelers typically purchase travel medical insurance for travel to other countries at the time of booking their travel,” says Rajeev Shrivastava, CEO and founder of VisitorsCoverage, a Silicon Valley insurtech company. “American travelers too often trust single options offered to them for travel coverage after purchasing airline tickets or rely on their credit card travel coverage for all of their travel needs. Unfortunately, they are risking serious financial consequences if they do not purchase comprehensive medical travel insurance coverage.”
Most U.S.-based health insurance plans do not cover travelers for treatment or hospitalization outside of the U.S. and Medicare does not cover any medical treatments when performed outside of the U.S. American travelers must also consider the extent and expense of repatriation which is being returned to the U.S. if they are seriously injured or ill by medical airlift with trained medical staff, often reaching five- to six-figures in cost.
“Savvy American travelers are aware of the myriad of events that may impact their travel,” Shrivastava continues. “Natural disasters and civil unrest may require not only medical treatment or emergency evacuation, but a travel insurance policy with the ability to cancel for any reason up to 48 hours prior to departure should global events unfold and the traveler is hesitant or fearful to embark on their journey.”
Cancel for any reason travel insurance adds approximately 40 percent to a typical travel insurance policy, but could save thousands if five-figure holidays or cruises have been planned.
“It is the duty of all companies in the travel insurance industry to educate the American public with educational materials and comparison tools that clearly illustrate what their U.S.-based medical insurance will or will not cover if treatment or hospitalization is required while abroad,” Shrivastava concludes.
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
