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As the Omicron wave subsides, travel insurance claims creep

    Before the pandemic, Lauren Mack, 44, a New York City writer, “didn’t routinely purchase travel insurance,” she wrote in an email. Covid-19 convinced her otherwise, and of the six trips she has taken since the start of the pandemic, she has had to claim three – twice for weather delays and once because her travel companion tested positive for the virus . Two are still under review and the first took nearly two months from claim to refund.

    While understanding what is covered by travel insurance and what is excluded continues to stumble consumers, a comprehensive and “cancel for any reason” policy has emerged as a way to cover non-refundable bookings and provide refunds. to ask for travel interruptions as travel continues to be buffered by coronavirus waves and uncertainties related to the war in Ukraine. (Most travel insurance policies exclude war and civil unrest and will not protect your investment if the conflict in Ukraine spills over into neighboring countries.)

    Now, getting a decision – or even an update – on a claim is the latest problem consumers are experiencing with travel insurance, whether it has something to do with Covid or not.

    “The claims vetting and approval process has been delayed due to the pandemic,” said Kendra Thornton, the owner of Royal Travel & Tours, a travel agency based in Winnetka, Illinois, who attributes the delay to the volume of claims. “Approved claims that were normally paid within two months now take five or more months.”

    As Americans prepare to travel in large numbers again — Destination Analysts, a market research firm, recently found that more than 93 percent of Americans are planning a vacation in the next 12 months — many are considering travel insurance. Depending on the destination, you may need to buy it; Belize, Fiji and Singapore are among the countries that require travel medical insurance to cover the costs if you contract the virus during your visit.

    Cover Genius, an insurance technology company that embeds insurance sales when booking travel on sites like Booking.com and Icelandair.com, saw sales rise six times in 2021 compared to prepandemic numbers. At WorldTrips, travel medical insurance sales are up 67 percent for travel in 2022 compared to 2019. The travel insurance company Seven Corners said sales had already increased 200 percent by 2022 compared to the same period in 2021.

    “Certainly at Omicron, we’ve been busy receiving inquiries and phone calls from customers asking what could be covered, and we’ve seen sales increase over the past few months,” said Meghan Walch, product manager for InsureMyTrip.com, a online travel insurance marketplace that allows shoppers to filter for policies that cover Covid-19. “People now want to go out and learn to travel.”

    Traditional insurance dealers aren’t the only ones looking for new buyers. In January, Marriott hotels partnered with insurer Allianz to offer travel insurance. When booking a hotel online, travelers are offered insurance at checkout. In addition to the cost of the room itself, insurance may cover total travel costs, including ski lift tickets and prepaid non-refundable tours. The cost of the insurance will be charged immediately, although the hotel rate is normally not due until the date of travel.

    Airbnb plans to offer travel insurance this spring that will cover the non-refundable portions of a stay booked through the platform. It also recently launched a protection plan for travelers unable to travel due to Covid-related travel disruptions, such as border closures or quarantine requirements, which were not in effect at the time of booking; in those cases, if an Airbnb reservation is non-refundable, the company will offer a coupon for 50 percent of the cost of the non-refundable portion of the reservation for future use. Seemingly designed to cover the Omicron peak, the program will run until April 30 or until the $20 million fund is exhausted.

    “People now know more about travel insurance policies that provide a safety net if they want to travel,” said Rajeev Shrivastava, the CEO of VisitorsCoverage.com, an online marketplace for travel insurance. “There has been a huge leap in sales, but also in applications.”

    While travel insurance is becoming ubiquitous, responding to a claim in a timely manner remains a challenge.

    From the time a traveler makes a claim to the time the insurer first responds varies, but experts say it usually takes five to 10 days.

    But virus waves, most recently Omicron, have clogged the system. At online travel insurance retailer Squaremouth, about 27 percent of claims have been related to Covid-19 since the start of the pandemic. Currently, nearly 40 percent is Covid-related.

    “As an industry, we have seen an unprecedented spike in the number of Covid-related claims over the past two years, which has at times translated into a backlog for many member companies who have been working around the clock to help their customers. ,” said a statement from the US Travel Insurance Association, a not-for-profit trade group. “With the claims spike, companies are expanding their workforce; however, newly added personnel must be trained and licensed before it is authorized to review claims.”

    Seven Corners is one of them and recently hired seven new employees who are being trained in claims handling, for a total of 24.

    “We’re trying to get ahead of any rise,” said Jeremy Murchland, the president of Seven Corners.

    Marc Devens, a software product manager living in Jersey City, NJ, remains loyal to Seven Corners based on a significant medical claim he and his wife made several years ago while living in China, which was handled efficiently. But last fall, he struggled to reach anyone at the company to update a policy for a December Caribbean dive trip, though it was eventually ironed out and the trip went off without a hitch.

    “The travel insurance industry is probably booming, but they certainly didn’t seem to anticipate it with more staff,” he said.

    The best way to get prompt attention, insurers say, is to be organized and thorough in filing the required paperwork. Keep all related expense reports, as well as all documentation of airline delays and cancellations.

    Like any other illness, if you contract Covid-19 (and it’s covered by your plan), which prevents you from traveling, cuts your trip short, or results in quarantine, keep treatment or diagnosis records from your healthcare providers. A Covid test at home is not enough for a medical claim; insurers require results of a test taken by a medical professional, accompanied by a doctor’s advice not to travel.

    In the case of lost luggage, it can be difficult to remember everything you packed. For that reason, Stan Sandberg, co-founder of the online marketplace TravelInsurance.com, recommends taking a photo of your suitcase packed and open.

    While insurance stores don’t handle claims, many say they will jump in and help customers get attention. InsureMyTrip.com has a claims tool run by representatives called “Anytime Advocates” who will review your case if you are denied or asked for more information.

    “Sometimes when we have clients that we don’t think are getting the attention they deserve, we’ll escalate that with our partners,” said Mr. Sandberg. “We can apply a little bit of pressure, but we won’t be helpful in making a claim decision.”

    “While I had to endure a longer than usual processing time to settle my claim,” said New York writer Ms. Mack, “it finally did.” Now she wrote in an email, “I will always take out insurance — pandemic or not — because you never know what might happen during your travels.”

    Elaine Glusac writes the Frugal Traveler column. Follow her on Instagram @eglusac†