The Independent Uganda: You get the Truth we Pay the Price
Some insurers already reaping big
In the meantime, some insurers such as; Sanlam General Insurance Uganda are reaping big in this new trend. The insurer has partnered with the Uganda Olympic Committee (UOC) as a travel insurance partners for the Uganda’s contingent to Japan. This is in response to a 60-page Covid-19 playbook by the International Olympic Committee (IOC) that required each official and athlete to be insured during the July 23 – August 8 Games.
Sanlam will provide insurance for the 34 members with a cover valued at $40, 0000 (Shs1.4bbn) per person to cater for Covid-19 situations, theft of loss of property, demise, and any other travel related incidences that may occur in their trip.
“The outbreak of the Covid-19 pandemic has led to a lot of uncertainties,” said Sanlam’s CEO Gary Corbit. “However at Sanlam we choose to look at the brighter side, the side that reflects our bold proposition of lives with confidence, a welcome encouragement to all our stakeholders.”
On the other hand, Alliance Africa General Insurance has come up with a COVID-19 insurance product dubbed COVID-19 Crusher which covers customers for four months regardless of the activities or location of the insured within the country at a premium fee of US$2.8. The cover caters for quarantine expenses on being shifted to hospital on quarantine from COVID 19 after waiting period, death compensation on being certified by treating hospital that COVID 19 is proximate cause of death within policy period of 3 months and accidental death benefits on death from visible accident / drowning / snake bite during active policy period.
The National Insurance Corporation executives told The Independent that although they had relaxed to come up with travel insurance products that covers COVID-19, the situation has forced them to do so.
The industry executives also said that inquiries about travel insurance has increased since the outbreak of coronavirus pandemic.
“Customers have now picked a lot of interest about travel insurance and are now going an extra mile to inquire how the product works and the benefits therein than ever before,” an executive in one of the insurers said.
This development comes at the time the country’s insurance penetration remains below 1% compared to Kenya’s 2.83%, Lesotho 4.7% and South Africa’s 16.9% amidst a surge in gross underwritten premiums to more than Shs 1trilion (US$ 280million) in 2020.
The market for all types of COVID-19 travel coverage is estimated to be between $30 billion to $40 billion a year, according to travel insurance consultant Robyn Ingle, with companies like AXA and AIG underwriting protection, Reuters reported.
But a surge in demand for COVID-19 coverage also means insurers could be on the hook for big payouts should another wave of infections lead to large numbers of cancellations or travelers getting sick.
“Travel insurance and protection services are taking off at pace with travel as it resumes, Dan Richards, chief executive for travel risk and crisis management firm, Global Rescue told Reuters.
With local insurers charging as low as US$24 and as high as US$800 per policy depending on the number of travel days, region and package –which is 10-20% increase compared to the pre-pandemic period –COVID-19 insurance benefits typically cover treatment up to $100,000, and could include coronavirus testing costs and services like evacuation or local burial or cremation.
These benefits, introduced by insurers recently, are sold either as add- ons or as separate policies with coverage for illness or quarantine.
Sasha Gainullin, CEO of battleface Inc. told Investopia that COVID-19 sparked a dramatic and lasting shift in the way people perceive travel insurance.
In fact, he suggests buying insurance for any kind of trip soon “will be as normal and ingrained in the traveler’s mind as selecting a seat for a flight.”
