Major UK insurance firms such as Direct Line, Churchill and Admiral have also decided to stop the sale of travel cover to new customers as the coronavirus (Covid-19) impact continues to rise globally.
However, all the existing customers of the three insurance firms will continue to be covered.
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The move is part of the insurers’ strategy to tackle the growing demand for travel covers amid the coronavirus pandemic.
Direct Line and Churchill underwriters stated: “For our customers who already hold a travel insurance policy with us there is no change and they can continue to contact us to make a claim or amend their policy.
“We remain committed to the travel insurance market and would reiterate that this is a temporary measure.”
Direct Line and Churchill have common underwriters.
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By GlobalDataAdmiral on its website said: “We strongly believe that pausing the sale of new policies to focus on our existing customers is the right decision.
“Our existing customers are not affected.”
Other insurance firms
Insurance giants like Aviva and AXA have added exclusions to their travel insurance policies instead of stopping the sale.
New and existing customers can still buy or modify their travel insurance policies but without the add-on cover for travel disruption or airspace closure.
Aviva last week reported that it had paid nearly $0.61m in travel insurance claims related to coronavirus.
The Post Office and Virgin Money have stopped selling travel insurance as well.
Last week, LV= paused the sale of new travel insurance due to coronavirus outbreak.
Association of British Insurers (ABI) encourages the move
A spokesman for the ABI said: “Travel insurance for new customers remains widely available, so people should shop around for the cover that best meets their needs.
“Insurance is based on assessing the possibility of an event occurring.
“Insurers will take account of when any risk becomes more of a probability than a possibility, making whatever commercial decisions that they feel are prudent.”
The Covid-19 pandemic has so far killed more than 6,500 and infected more than 169,000 people around the world.
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