The travel insurance sector experienced a notable surge in the total value of claims paid out to policyholders throughout 2023, marking a significant 30% increase.
Moreover, the average reimbursement extended to travelers stood at an impressive six times the initial cost of purchasing a travel insurance policy.
According to data from Squaremouth, nearly half of the claims settled in 2023 pertained to trips that were either canceled or prematurely curtailed.
Of these claims, those related to trip cancellations alone constituted a substantial 25% of the total, with an average payout hovering around $5,000. Following closely behind were emergency medical claims, comprising 24% of the overall claims volume.
While evacuation claims were less frequent, they emerged as the most financially burdensome, boasting average payouts exceeding $10,000.
An additional notable trend in 2023 was the uptick in reimbursements under the Cancer for Any Reason (CFAR) benefit, an optional add-on available with select policies.
The average reimbursement for CFAR claims was reported at $2,111, with the highest recorded payout exceeding $25,000, representing a twofold increase from the maximum payout observed in 2022.
In a separate study, Squaremouth disclosed that the average cost of spring travel in 2023 amounted to $7,719, marking an 11% surge from the previous year’s figure of $6,943.
