What is Travel Insurance? (or, what is one to do after the hyena tears down your camp?)

What is Travel Insurance? n Travel Insurance, quite simply, protects potential losses relating to travel

Typical Coverages n Trip Cancellation n Trip Interruption n Travel Delay n Medical n Emergency medical transportation n Lost/Damaged Baggage n Baggage Delay

Coverages (cont.) n Accidental Death and Dismemberment, including Flight Accident AD&D n Pre-Existing Conditions Waiver (purchase period option) n Collision Damage Waiver (optional) n Typically there will also be a service package included

General Structure n Travel Insurance is generally sold as a package of coverages - very seldom as a “pick and choose” set of coverages n Certain coverages tend to be sold separately: CDW, Flight AD&D

Ratemaking Considerations n Differing exposure bases on package: –Trip Cost (Trip Cancellation) –Trip Length (Medical) –Per Trip (Baggage Delay) n “Bundled” versus “Unbundled” n Nonstandard set of policy exposure periods n Catastrophe exposures (terrorism, hurricane, financial default)

More Considerations n Potential Rating factors: –Trip Cost, Trip Length, Age, Destination, State, Tour Operator/Cruise Lines penalties n Take-up rate (spread of risk) n Unsophisticated seller

Strange but true... n Man attacked by wild coconut! n Ripped off by a rat… n Running with the donkeys n Thanks for the rescue! n Nothing’s going to ruin my vacation!