CAFII Holds a Webinar on “Travel Trends and Travel Insurance Implications As Society Emerges From the COVID-19 Pandemic”
CAFII held a 3 November, 2022 webinar with four expert panelists: Eliot Draga, from the Travel Health Insurance Association of Canada; Sheila Burns, from the Canadian Life and Health Insurance Association; Katia Umotonuwase, from Manulife and the Chair of the CAFII Travel Insurance Experts Committee; and David Moorcroft, travel blogger and host of “The Business of Blockchain” podcast.
David Moorcroft said that travel is still recovering, with only half the travel globally in January to May 2022 relative to 2019. Elliott Draga said that travel spend in Canada is about 75% in Q4 2022 relative to 2019, so that is another indication that there is still more recovery to occur. Sheila Burns also noted that some of the Canadian travel may be due to use of travel vouchers, so the numbers may not even be as good as they seem. Katia Umutoniwase agreed that there is definitely a recovery in place, and hopefully things will return to normal in 2023.
Another factor is that people are thinking of cutting back on travel due to inflation and higher interest rates. On the other hand, people have accumulated significant savings over the past few years during COVID. Snowbirds are also less likely to be affected by inflation than other Canadians. Older Canadians who wanted to travel but could not due to COVID are likely to spend what is needed to get the experience they want, no matter the cost.
The panel spoke about some of the challenges at airports and with obtaining passports. There are definitely significant service delays as governments and airlines try to adopt to heightened delays, mostly due to a staffing problem. This is the same situation with the surge in demand for passports, with the government not anticipating the level of demand that occurred in a short span of time.
The panel was asked about how travel has changed, and Katia Umutoniwase said that clients are now initiating questions about travel insurance. There is an increase in people taking large, complex trips, she added. Elliott Draga said that there are definitely more travel insurance policies being issued, and people are paying more attention to the terms and conditions of their insurance.
The panel spoke about the adjustments that have been experienced in other areas, such as the shortage of pilots, the chip shortage, and the challenges in the car rental business. There was also reference to some issues with the system for easier passage across the Canada-United States border, called Nexus.
It was noted that now that there are lower level advisories regarding COVID, it is now covered in regular travel insurance for most policies, without the need for purchasing additional coverage or riders for COVID. It is still very important for consumers to do their research and determine exactly what a policy covers, and what it does not.
Most panelists felt that the next time a pandemic occurs, governments will be better prepared and will use a more scientific approach to some of their requirements. The population may be better educated about the best response to take individually including more willingness to be vaccinated. However, every situation is different and it is hard to predict how such a situation will unfold in future.
Some polling questions were asked during the webinar and the results can be found here:
https://www.cafii.com/wp-content/uploads/2022/11/CAFII-Webinar-Nov-3-English-Poll-Results.pdf
In attendance at the webinar were representatives from allied industry Associations the CLHIA and THIA, and from the Regulatory and Policy-Maker community:
The British Columbia Financial Services Authority (BCFSA);
Alberta Treasury Board and Finance;
The Alberta Insurance Council;
Insurance Council of Manitoba;
the Financial Services Regulatory Authority of Ontario;
Quebec’s Autorité des marchés financiers, or AMF;
The New Brunswick Financial and Consumer Services Commission, or FCNB;
The Office of the Superintendent of Insurance, Government of Nova Scotia; and
The Office of the Superintendent of Financial Institutions, or OSFI.
