Transcript Download Handout 1

What is Travel Insurance?
(or, what is one to do after the hyena
tears down your camp?)
What is Travel Insurance?
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Travel Insurance, quite simply, protects
potential losses relating to travel
Typical Coverages
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Trip Cancellation
Trip Interruption
Travel Delay
Medical
Emergency medical
transportation
Lost/Damaged Baggage
Baggage Delay
Coverages (cont.)
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Accidental Death and Dismemberment,
including Flight Accident AD&D
Pre-Existing Conditions Waiver
(purchase period option)
Collision Damage Waiver (optional)
Typically there will also be a service
package included
General Structure
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Travel Insurance is generally sold as a
package of coverages - very seldom as
a “pick and choose” set of coverages
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Certain coverages tend to be sold
separately: CDW, Flight AD&D
Ratemaking Considerations
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Differing exposure bases on package:
– Trip Cost (Trip Cancellation)
– Trip Length (Medical)
– Per Trip (Baggage Delay)
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“Bundled” versus “Unbundled”
Nonstandard set of policy exposure
periods
Catastrophe exposures (terrorism,
hurricane, financial default)
More Considerations
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Potential Rating factors:
– Trip Cost, Trip Length, Age, Destination,
State, Tour Operator/Cruise Lines penalties
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Take-up rate (spread of risk)
Unsophisticated seller
Strange but true...
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Man attacked by wild coconut!
Ripped off by a rat…
Running with the donkeys
Thanks for the rescue!
Nothing’s going to ruin my vacation!