Travelers insurance sales could grow as much as 5 percent in 2017 due, in part, to an expected increase in vacation travel and more worries about international terrorism, a division of Berkshire Hathaway Specialty Insurance concluded in a new report.
About 36 percent of consumers also expect to buy more travel insurance in 2017, with close to 61 percent of travel agents predicting that 2017 will be a better year for travel insurance, according to Berkshire Hathaway’s Travel Protection’s second annual benchmark white paper report.
Among the factors that may spur more travel insurance demand:
The report found that 41 percent of Berkshire Hathaway Travel Protection travelers said they’d take more international leisure trips in 2017, which suggests a possible spike in travel insurance coverage. About 39 percent of international trips are typically covered by travel insurance, but only 16 percent of domestic leisure trips are typically covered, the report noted.
Beyond more international leisure travel, the report noted that higher trip costs should also spur more coverage demands, as well as flight cancellations and delays. Increased awareness of travel insurance, family health, and increased interest in cruise travel should also spur demand, the report found.
About 60 percent of travel agencies and 25 percent of travelers who participated in the report said that international terrorism was a threat to traveling, with 12 percent of travelers saying that terrorism is a reason to buy more travel insurance.
The full report – “The State of Travel Insurance” – is based on responses from 573 travelers and 96 travel agencies regarding their travel habits, travel business, 2016 travel experiences and 2017 expectations.
Source: Berkshire Hathaway Specialty Insurance/Berkshire Hathaway Travel Protection