Global annual market volume for travel insurance product earlier predicted to grow higher in 2020 would be badly affected by the lockdown and ban on international travels over Covid-19 pandemic.
The industry worth about $19.2 billion in 2019 with Nigeria as beneficiary would have lost some volume since the wake of Covid-19 in the first quarter of this year, when many business and tourist travels were suspended worldwide to contain the spread of coronavirus.
Travel insurance covers the expenses incurred and minimises the risks during travel. It acts as a cushion in situations such as trip cancellation due to medical emergencies, loss of baggage, evacuation due to medical condition or hijack and loss of travel documents, among others.
Allied Market Research in a statement released on its website states that the global insurance market size was $19.2 billion in 2019 and is projected to reach $39.3 billion by 2027, growing at an average rate of 17.4 percent from 2020 to 2027.
However, industry analysts believe that this volume is doubtful this year, as there would be limited international travels except for emergencies, until the Covid-19 pandemic is over in China, European and American countries.
Analysts in the Nigerian market express concern over the development. According to them, the product is still yet to assume prominence in the country as awareness is beginning to increase with operators sealing partnerships with foreign partners to drive the product.
Funmi Babington-Ashaye, managing director/CEO, Analysts Insurance Brokers Limited, explaining the impact of the pandemic on the industry, notes that aviation industry has been hugely affected, with ban on international travels as a result of the Covid-19 pandemic.
All aspect of aviation business is affected, including travel insurance that is still at a growing level in our market, she states.
Austin Ebose, managing director/CEO, Anchor Insurance Company Limited, says travel insurance will be hugely affected.
Ebose, whose company has recently signed a partnership deal for travel insurance with a foreign partner, states that everything has to be put on hold until international travels begin again.
According to Ebose, the product is being run under an agreement with Mapfre Asistencia, based in Spain, and it comes with different features and benefits.
Some other companies offering travel insurance include Allianz Nigeria in partnership with Allianz Global Assistance; AIICO Insurance in partnership with AIG South Africa; Niger Insurance; Prestige Assurance; Consolidated Hallmark Insurance; Leadway Assurance; Mutual Benefits Assurance, and AXA Mansard Insurance.
CHI Travel Insurance covers the Schengen and other European countries, Asian, African countries and America, and has since been approved by the National Insurance Commission (NAICOM).
It provides the required cover for travellers who go abroad for tourism, business trips or educational pursuit.
Duration of cover is available for short trip and up to a period of 12 months, renewable thereafter, and special plans have been put in place under the plan to cater to the needs of pilgrims during trips to the holy lands (Pilgrimage Protection), and Students special Travel Plan.
