New information released by GlobalData, a leading data and analytics company, reveals that travellers are clarifying with their travel insurance companies to see whether they will be covered if they have to cancel their trip, as the coronavirus outbreak continues to worsen.

The survey found that Spain, the US, France, Greece and Italy are the most popular destinations among consumers purchasing travel insurance from inside the UK.

With 86 per cent of policyholders being holidaymakers, it’s important for clients and agents to know that travel insurance covers destinations where government agencies have warned against travel.

The Foreign and Commonwealth Office (FCO) advices against travel to China, Daegu, Cheongdo and Gyeongsan in South Korea, along with several towns in Italy’s Lombardy region and Veneto.

However, this coverage is only valid if the insurance is purchased before a region or country is added onto the list, meaning those booking holidays to affected regions after being advised not to travel will not be covered.

With countries and areas where the FCO has not advised against travel will not be covered, however, there may be changes to policies if the government declared coronavirus and an epidemic or pandemic.

“Consumers are more likely to buy single-trip policies ahead of their trip, with 41.5 per cent of respondents indicating this was the type of cover they bought in 2019,” said senior insurance analyst at GlobalData, Beatriz Benito.

“A holiday is the most common reason for travel, as cited by 86 per cent of policyholders, while just 1.1 per cent of respondents indicated that they were travelling for business purposes.

“With coronavirus hitting all of the popular destinations, fears of contracting the virus mounting, and many finding that their travel is non-essential, consumers are turning to insurers to clarify their options.”

The report also revealed that travel insurance comparison sites in the US have reported an increase in sales of pricer ‘cancel-for-any-reason’ travel policies.

Meanwhile, several cruise lines are relaxing their cancellation policies in light of the outbreak, including Silversea, Royal Caribbean group and Princess Cruises, to name a few.

Visit globaldata.com for more information.