The collapse of budget airlines and other travel industry failures have prompted a sharp uptake of financial protection insurance by holidaymakers, according to travel insurance specialist Voyager.
Thirty two airlines have failed in the past year alone with a number of other airlines reported to be facing bankruptcy. These and the threat of other travel-related failures have increased demand for financial protection by travelers who have not booked a package holiday.
This has contributed as a result to an 87% increase in revenue for Voyager’s WEBroker travel insurance product, which includes holiday financial protection as standard. The fact that there are no surcharges for pre-existing medical conditions has also contributed to the product’s growth and popularity among policyholders and brokers.
Currently Voyager deals with around 500 brokers selling WEBroker and is looking to continue growing its agency base. On December 1 the scheme will be renewed for a fifth year by Mondial Assistance UK Ltd.
Voyager director Jonathan Buttery said: ““Although the number of UK residents’ visits abroad decreased by 13% between August 2008-2009, that still equates to over 61 million trips made by UK nationals abroad. So despite the impact of the downturn on the travel sector people do still want to travel and, due to the industry’s difficulties, more and more are seeking protection with financial insurance.
“We have offered a comprehensive travel product for some years but the recession, and the threat of travel firms failing and people being stranded, has undoubtedly crystallised the need for robust protection in travellers’ minds.”
