The coronavirus pandemic has affected the relationship between travel insurers, tour operators and consumers - with potentially serious implications for the insurance industry.
Speaking to Insurance Day, BLM Partner and head of travel, Matthew Ford along with Sarah Prager and Richard Collier of 1 Chancery Lane have outlined what impact the pandemic is having on the industry and what areas are most likely to be worst hit.
"Some consumers and tour operators may regard travel insurance as the solution to what appears at present to be an insoluble problem. The Association of British Insurers (ABI) has calculated travel insurers in the UK could face at least £275m ($343.6m) of claims as a result of coronavirus for holidays and trips that could not be fulfilled because of cancellations or general travel restrictions. To put this into perspective, the Eyjafjallajökull volcanic eruption in Iceland in 2010 resulted in a mere £62m of payments, a record at that time."
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