Travel cover in a time of uncertainty
Travel cover in a time of uncertainty | Insurance Business New Zealand
Travel
Travel cover in a time of uncertainty
Fear of commitment? Cover-More has a solution for even the most indecisive travellers
Travel
By
Bennett Richardson
If you think the world has become less predictable of late, you are not alone – goalposts rarely seem to stay in one spot for long and many things that people once took for granted now require more careful consideration.
As uncertainty increasingly becomes the new normal, the travel industry is adapting to meet evolving consumer needs and set a few minds at rest in the process. Cover-More Travel Insurance has introduced a game-changing product that promises to both redefine and bolster travel confidence: Cancellation Plus Cover.
Flexibility in uncertain times
The post-pandemic travel landscape is fraught with hesitation. Skyrocketing costs and lingering anxieties have left many potential travellers reluctant to commit. Enter Cancellation Plus Cover, an innovative add-on designed to bridge the gap between standard insurance offerings and the newfound desire for ultimate flexibility.
“We want people to travel more and worry less,” says Will Ashcroft, Cover-More Travel Insurance Managing Director for New Zealand. “We hope that this optional add-on will support more travellers to make travel plans with extra peace of mind.”
This sentiment reflects a broader shift in consumer expectations, where the ability to change plans without significant financial repercussions has become increasingly important.
Getting to know Cancellation Plus Cover
At its core, Cancellation Plus Cover is an extension of Cover-More’s standard cancellation protection. While traditional policies safeguard against unforeseen circumstances beyond a traveller’s control, this new offering casts a wider net.
Ashcroft explains, “Our optional Cancellation Plus Cover add-on is designed for travellers on our highest International and Domestic Plans who want to pay an additional premium for extra flexibility to cancel for a reason that would not be covered by their policy otherwise – often circumstances that are within their control, including a change of mind to travel or no longer being able to afford to travel.”
The coverage is substantial, albeit with specific limitations. “If travellers with Cancellation Plus Cover cancel their trip at least 48 hours before their trip departure date, for reasons not otherwise covered by their policy, we will cover a portion of their prepaid, non-refundable costs – not all of them,” Ashcroft clarifies.
“It covers the lesser of 75% of the non-refundable unused portion of the coverable prepaid travel costs or 75% of the selected cancellation cover sum. In any case, we will not pay more than $10,000 per policy.”
A response to market demand in an uncertain world
The introduction of Cancellation Plus Cover wasn’t a shot in the dark. Rather, it was a calculated response to clear market signals, addressing common fears that often prevent people from booking travel.
“This is about more care, more cover for all Kiwi travellers. While the standard cancellation cover offers good broad protection for travellers, Cancellation Plus Cover offers more cover for those times when life or other complications get in the way of travel plans. It is an evolution of the Cancel For Any Reason (CFAR) product we had in market prior to COVID-19.”
This consumer-driven approach underscores Cover-More’s commitment to aligning their offerings with real-world needs and expectations – not to mention being a testament to their ability to always be across the pulse of trends in the travel market.
The versatility of Cancellation Plus Cover becomes apparent when considering its potential applications. From changes of heart to unforeseen professional commitments, the policy aims to cover a broad spectrum of scenarios.
Ashcroft outlines some common situations: “Travellers need to cancel their travel for all sorts of reasons. Here are some scenarios which could initiate a travel cancellation under Cancellation Plus: change of mind, planned leave revoked, cancelled business meetings, financial priorities shifting, anxious travellers, travel companions pulling out, conflicting events at home, or visa applications not approved.”
This flexibility is particularly valuable for certain demographics, providing assurance for couples in case of relationship breakups, or for those with elderly relatives who may need care unexpectedly.
Key features and considerations
For insurance brokers and travellers alike, understanding the nuances of Cancellation Plus Cover is crucial. Here are some key points to consider:
Timing is everything: the add-on must be purchased at the same time as the main policy and is only available for trips departing more than 7 days from the policy issue date.
48-hour rule: cancellations must be made at least 48 hours before the scheduled departure.
Coverage limits: the policy covers up to 75% of either the non-refundable unused portion of prepaid travel costs or 75% of the cancellation cover sum insured, whichever is less, with a maximum payout of $10,000.
Pre-purchase considerations: travel costs paid more than 48 hours before purchasing the policy with Cancellation Plus Cover won’t be covered under this add-on.
Exclusions: exclusions apply. These are detailed in the policy documentation.
As with any innovative product, Cancellation Plus Cover requires a certain amount of broker education.
“Brokers need to work with their clients to select the right level of cancellation cover for the policy upfront. This includes flights, accommodation, tours, and any other non-refundable costs. Then, the optional Cancellation Plus Cover must be issued at the same time that their client buys their policy.”
Ashcroft underscores the importance of clear communication: “The terms and conditions associated with the optional add-on product are very specific. It is important that brokers are fully aware of these and communicate them clearly to their customers to avoid any misunderstandings or disappointment in the event of a cancellation.”
However, the opportunities are significant. “This add-on will strengthen and grow our partnerships by positioning Cover-More highly amongst the competition in the New Zealand travel insurance market,” Ashcroft predicts.
A new era of travel confidence
As the travel industry continues to navigate the complexities of a post-pandemic world, products like Cancellation Plus Cover are poised to play a crucial role in rebuilding consumer confidence. By offering unprecedented flexibility and control, Cover-More is not just selling travel insurance – it’s selling peace of mind.
In an era where adaptability is key, Cancellation Plus Cover represents more than just a new insurance product. It’s a reflection of a changing travel landscape, where the ability to pivot at a moment’s notice is no longer a luxury, but an expectation. As travellers return to the skies and seas, this innovative approach to insurance may well be the catalyst that transforms caution or hesitation into action.
As with all insurance products, it’s crucial for travellers to read the full policy document to understand what is and isn’t included. With Cancellation Plus Cover, Cover-More is taking a significant step towards making travel more accessible and worry-free for all.
“We hope that cautious travellers will feel more comfortable to make travel plans,” says Ashcroft.
Cover-More Travel Insurance has been part of the New Zealand travel sector since 2007 and is one of the country’s leading providers of travel insurance and medical assistance. Cover-More NZ works with well-known Kiwi brands and also offers travel insurance directly to travellers via www.covermore.co.nz. Based in Auckland, Cover-More NZ has the global backing of parent company, Zurich Insurance Group, a global multi-line insurer with 56,000 employees and operations in more than 210 countries and territories.
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