Following the news that the Canary Islands announced it will offer tourists free insurance covering COVID-19-related incidents, travel industry analysts are saying that the latest offer is a part of the emerging trend of temporary travel insurers emerging as countries and airlines desperately attempt to bring tourism back, despite COVID-19 and travel insurers shying away.
The Canary Islands Department of Tourism is providing this in partnership with one of the leading insurers in the UK, in AXA. GlobalData’s 2019 UK Insurance Consumer Survey found that it was the sixth biggest insurer, with a market share of 4.6%.
New policies like this and the recent offer from Emirates providing customers with free insurance for certain COVID-19 expenses, show how essential tourists are to so many businesses. Insurers have been reluctant to offer full coverage for COVID-19 risks to consumers, however, sharing the potential claims costs with companies – or even countries who will benefit from tourists feeling more comfortable travelling – is a sensible temporary measure.
If Emirates and the Canary Islands see a rise in business with consumers feeling they are now taking on less risk in travelling, then it is likely to be replicated by other destinations and airlines.