ESSENTIAL READING FOR TRAVEL & HEALTH INSURANCE INDUSTRY PROFESSIONALS visit www.itij.com for the latest news JANUARY 2014 • ISSUE 156 Winter wipeout warning With the northern hemisphere now focused on winter sports holidays, a UK insurer has warned that many enthusiasts will be hitting the slopes without the appropriate insurance in place. James Paul Wallis has more details Almost one in seven (15 per cent) of winter sports- goers don’t take out the appropriate insurance cover for winter sports such as skiing, snowboarding or tobogganing, despite the fact that almost half (46 per cent) of snow-lovers admit to being involved in an accident or a near miss whilst on holiday, resulting in three-quarters (76 per cent) of them needing emergency medical treatment paid for by their insurance, according to research commissioned by Aviva. A thousand adults who go on winter sports holidays were surveyed on behalf of the UK-based insurer between 15 and 20 November last year. Almost half (43 per cent) of those surveyed who didn’t buy winter sports insurance said it was because they didn’t think they would ever need it, with 36 per cent wrongly believing that they don’t need insurance if they have an European Health Insurance Card (EHIC) and 11 per cent simply forgetting to buy it. Yet when asked if they could afford to pay for any medical treatment themselves, without insurance, 64 per cent of the respondents admitted they couldn’t. medical treatment abroad for winter sports-related have insurance), the average amount that respondents said the company. Aviva said that the research showed that many winter injuries. When asked what they could afford to pay if said they could afford was £492, but in fact the average Heather Smith, director of Aviva general insurance, sports fans are unaware of the actual cost of receiving they needed emergency medical treatment (and didn’t winter sports claim last year was far higher at £740, warned travellers: “We never continued on p.6 Credit card cover questioned Prof. Allan Manning, managing director of risk or ‘restricted’, this time the message is coming from catered for. Other limitations cited include a limited management and insurance comparison agency LMI Manning, who is an ‘independent expert’. “I’ve got maximum trip duration, limited cancellation cover, Group, has warned Australians that travel insurance credit cards like most people, but I always buy my little or no death benefi t and a lack of protection for cover included for free with credit cards can be, at own insurance,” Manning told the Herald. “It’s a very kidnapping or political evacuation. best, ‘very basic’. Sarah Watson reports important purchase. It can cost you everything if you Recognising an alternative view, the Herald noted that get it wrong.” Choice, a consumer review group, said that some Manning was recently quoted in an article in The Adding that if a traveller has had a heart attack in the credit cards boast travel insurance cover on a par with Sydney Morning Herald, which noted that although past or has high blood pressure, insurers are ‘always separately bought policies. Admitting that compared travel insurance providers, who have a vested interest looking for a reason not to pay’, Manning highlighted to stand-alone products, credit card policies may lack in this issue, often tell consumers that the cover they the problem that credit card travel insurance seldom the same level of fl exibility, with fewer options for have bundled with their credit cards may be ‘limited’ has the capacity for pre-existing conditions to be customising the policy, the continued on p.4 REGULARS News continued p.4 Travel matters p.18 Profile p.34 Industry Voice p.8 Health matters p.20 Service directory p.35 Company brief p.12 IPMI news p.22 Grapevine p.42 Insurance matters p.13 ITIC Schedule 2014 p.24 On the move p.43 WWW.ITIJ.COM NEWS ANALYSIS FEATURES Editor-in-chief: Ian Cameron Editor: Sarah Watson Title editor: Mandy Langfield Sub-editor: James Paul Wallis Editorial assistant: Stefan Mohamed US correspondent: Milan Korcok Director of events: Denise Clements Subscriptions: Helen Watts Production: Kate Knowles Advertising sales: David Fitzpatrick & James Miller Finance: Elspeth Reid & Louise Goddard Design: V Creative Design Crunching the vcreativedesign.co.uk numbers page 26 Confusion reigns ITIJ supreme page 10 Fraud continues to plague the Voyageur Buildings, 43 Colston St, Bristol BS1 5AX, UK travel and health insurance Telephone: +44 (0)117 922 6600 Customers need to read the small industries around the world. Threat Forecast editorial department: extension 3 print to avoid being disappointed UK-based expert Gary 2014 page 30 advertising department: extension 1 by unrealistic expectations when Sommerford offers information subscriptions department: extension 209 it comes to compensation for and advice to insurers seeking to Red24 issues its 2014 Threat accounts department: extension 4 cancelled trips. But are travel set up or augment their current Forecast, which describes the insurance vendors failing to make anti-fraud measures to better latest dangers to safe travels fax: +44 (0)117 929 2023 it clear what their clients are control the increasing cost of around the world, with a focus on email: [email protected] covered for? fraudulent activities security and political unrest web: www.itij.com WOULD YOU LIKE TO SUBSCRIBE? www.itij.com/subscribe Editorial Comment Mandy Langfi eld Title Editor of ITIJ Published on behalf of: Voyageur Publishing & Events Ltd, Happy New Year! So, 2014 is upon this year will see Thailand, and huge number of tourists it treats for Voyageur Buildings, 43 Colston Street, Bristol BS1 5AX, UK The information contained in this publication has been published in good faith and us, and what has the travel health potenti ally other nati ons, introduce free each year. every effort has been made to ensure its accuracy. Neither the publisher nor Voyageur Ltd can accept any responsibility for any error or misinterpretation. All liability insurance industry got to look compulsory travel insurance for While the Aussies and Kiwis sun for loss, disappointment, negligence or other damage caused by reliance on the information contained in this publication, or in the event of bankruptcy or liquidation forward to this year? Call me an internati onal visitors. While tour themselves in Asia (hopefully not or cessation of the trade of any company, individual or fi rm mentioned is hereby opti mist, but I’m hoping for a bit operators lament the possibility of riding too many scooters while excluded. The views expressed do not necessarily refl ect those of the publisher. more controversy – aft er all, our job having to cope with the introducti on imbibing ethanol-laced cocktails), Printed by Pensord Press, South Wales, United Kingdom is much more fun when life doesn’t of the ‘tourist tax’, personally I am northern hemisphere insurers’ Copyright © Voyageur Publishing 2014. Materials in this publication run smoothly! Maybe we will see prett y confi dent that most people eyes are fi rmly on winter sports may not be reproduced in any form without permission the EHIC being refused again, and holidaying in the Land of Smiles enthusiasts. With a renewed focus maybe insurers will have another won’t be averse to paying a few on safety, and the use of helmets INTERNATIONAL TRAVEL INSURANCE JOURNAL ISSN 1743-1522 opportunity to band together euros/dollars/pounds into the becoming ever more commonplace, Would you like to make a comment? to defend their rights and those country’s public healthcare system, fi ngers are crossed for a season with of their policyholders. Perhaps which copes so admirably with the minimal injuries. Please contact the editorial desk: [email protected] - or call us: +44 (0) 1179 226600 - ext. 3 4 NEWS Single-trip or annual? Credit card cover New research from UK consumer group Which? has policy from the same provider. questioned continued from p.1 suggested that for British travellers, it can be cheaper Which? reported that the two insurers that stood to buy three single-trip travel insurance policies out as being most expensive for European annual group added that they often also lack the age limits instead of an annual one – though it does depend cover were Topnotchcover and Insurewithease – seen on stand-alone products. on the destination. Which? found an example of a costing £120.58 and £108.93 respectively, but buying Manning also admitted that travel insurance providers And so with the ski season in the northern single-trip travel insurance policy to the US costing three single-trip policies with these providers for the are not all the same when it comes to making a claim: hemisphere well under way, as usual the analysis £400, more than an annual policy covering the same holidays listed above would cost just £81.63 and “Some [providers ] look for any excuse not to pay has begun on a) the number of people stupid holiday. However, with more than a third of travel £75.69 respectively. Topnotchcover told Which?: and some are very good.” To help consumers to enough go without winter sports insurance and “There’s a current price anomaly with our Gold make an informed choice, LMI Group offers a claims b) how best to protect those who choose to annual multi-trip policy for those over the age of 55 comparison website that gives information on topics strap a plank of wood (now fibreglass) onto their years. We hope to have the matter resolved in the such as how claims are dealt with and how many feet and career down mountain slopes formerly not-too-distant future.” disputes occur.