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ESSENTIAL READING FOR TRAVEL & HEALTH INSURANCE PROFESSIONALS
Counting the cost of travel insurance
p.43
JULY 2019 • ISSUE 222
Uninsured tourism hurts Japan hospitals Japan has urged foreign tourists to invest in travel insurance, as large numbers of uninsured travellers are entering the country and leaving behind unpaid medical bills that put great strain on Japanese hospital budgets According to a Japanese Government survey conducted by the Health, Labour and Welfare Ministry, 27 per cent of all travellers arriving in Japan have taken out no insurance policy at all, and once ill in Japan, tourists must foot the bill for all medical expenses. The survey also reveals that around 20 per cent of hospitals that have treated foreign tourists have received no payment from patients following medical care and procedures, including one hospital where the total amount exceeded 10 million yen (US$92,000). As a response to this crisis, local authorities have been trying several methods to get visitors to purchase travel insurance, from handing out flyers in tourist information centres and hotspots – which list the price of the most expensive hospital treatments (“700,000 yen for heatstroke” and “three million yen for a broken bone”) – to developing a low-cost insurance policy in co-operation with the tourism agency. Travellers are encouraged to purchase travel insurance on their smartphones and other devices even after they step off the plane in Japan. And the method is slowly beginning to see success – Sompo Japan Nipponkoa Insurance Inc., which developed the low-cost insurance
The Association of British Insurers (ABI) has revealed that the average medical claim on travel insurance surpassed £1,300 for the first time ever in 2018, reaching £1,368 In addition, the ABI’s figures show that the total amount paid to Brits abroad in 2018 – £400 million – was at its highest level since 2010. In the past decade, the average medical claim has nearly doubled, from £768 in 2008. Although average claims costs across the board have increased, the average premium has decreased to £38 and older travellers have seen the most significant drop in price.
The ABI has highlighted the importance of purchasing cover sooner rather than later and ensuring that it is suitable for their needs, rather than just being the cheapest option. The ABI’s Senior Travel Policy Adviser Charlie Campbell commented: “The fact that onequarter of Brits travel abroad without the right travel insurance is incredibly worrying. Few people have the luxury of being able to afford a surprise £800 bill, let alone one that runs into the tens or hundreds of thousands if they fall ill abroad. Anyone travelling this summer should avoid unnecessary financial and emotional stress by ensuring they have the right cover in place. As not all policies are the same,
people should look for cover that meets their needs, rather than the cheapest option.” Brits overspending on travel insurance They say that to err is human, but if British holidaymakers realised that by purchasing the wrong travel insurance they are collectively overpaying by about £630 million, annually, it’s likely they’d politely tell Alexander Pope where to go. Alas, it’s true – a survey conducted by travel insurer Columbus Direct found that many are losing money by buying multiple single-trip
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