BIBA Urge Caution Against Online Travel Policies

by Stewart Douglas

Story link: BIBA Urge Caution Against Online Travel Policies

BIBA, the British Insurance Brokers Association, have today released a report suggesting that online travel insurance policies may not provide adequate cover, and may offer consumers poor value for money as compare to traditional policies.

The announcement reflects the fact that BIBA believe online policies to provide less cover than what consumers are used to at present, which is in turn mirrored in their pricing strategy and could lead to a growing level of losses within the travel insurance industry.

The group comprising of most UK based insurance brokers warned that consumer insurance buyers should be wary of low cost online only insurance packages for their travel, primarily as a result of the fact that many of the mainstream, popular policies fail to cover certain valuables and essential holiday insurance costs, like medical expenses and luggage.

The news comes off the back of a report by Halifax Travel Insurance last year which reflected a growing number of holiday makers heading out in the Christmas period, giving rise to an even greater need for comprehensive travel insurance cover provided to the consumer market.

Additionally the association warned that consumers should avoid online insurance products as a rule where they are considering taking items of substantial value on holiday, or opting for a specialist holiday type involving more dangerous activities like skiing and horse riding, as many cheaper policies available online provide only the bare bones of traditional insurance cover.

The British Insurance Brokers Association has today advised that consumers should get in touch with their local broker prior to selecting cover from solely online suppliers in order to make sure the policy they’re buying provides the level of coverage they expect.