Demand for holiday cover rises steeply – even though policies will only pay out if the Foreign Office upgrades its travel advice
The number of people buying travel insurance rose sharply last month, despite the fact that most policies won’t pay out if people cancel due to concerns around coronavirus.
According to the Association of British Insurers, cancellations will only be covered if the Foreign Office (FCO) advice changes to all but essential travel to a destination after booking. However, with growing concerns about coronavirus and uncertainty over whether the FCO may widen its advice to include additional countries or regions, insurance providers saw a surge in the sales of policies in February. Many of these policies are for trips much later in the year, as people rush to secure cover instead of leaving it to the last minute, which insurers say is often the case.