Spaniards are increasingly purchasing travel insurance, especially for high-risk countries

We are traveling more and more safely.

Madrid, September 26, 2019.

Every September 27, World Tourism Day aims to raise awareness in the international community about the social, cultural, political, and economic value of tourism. Under the theme "Tourism and jobs: a better future for all," #WTD2019 promoted by the UNWTO (World Tourism Organization) focuses on a sector that generates more than 10% of jobs worldwide.

In the first quarter of 2019 alone, Spaniards took 42 million trips, an increase of nearly 3% compared to the previous year, according to the National Statistics Institute (INE). Traveler safety is essential. The industry association Unespa emphasizes that there are a series of "basic coverages" for traveling safely, such as medical expenses caused by illness or accident, repatriation, civil liability, damage, theft or loss of luggage, trip cancellation, and compensation for delays.

Traveling safer: 30% more policies taken out this summer

We are traveling more, but we are doing so better protected and more aware of the need for guarantees. Choosing insurance is becoming increasingly important. 64% of travelers who used their travel insurance coverage in the last year reported a "high level of satisfaction" with how their incidents were handled, according to InterMundial. Although in Spain (where only one in three travelers is insured) we are not yet on par with neighboring countries like Germany or the UK, where there is a deeply rooted culture of foresight and three out of four people travel with insurance, the purchase of these types of policies at InterMundial has grown by more than 30% this summer compared to last year.

Manuel López, CEO of InterMundial, vice president of the Tourism Board, and member of the CEOE Tourism Council, estimates that "in the next decade, one in two Spaniards will travel insured," as "travelers are becoming more demanding and much better informed." To meet this demand and offer insurance that is increasingly "tailored" to each type of trip and traveler, specialized companies like this Spanish firm require solid teams adapted to the new demands of the market. "Today, more than ever, it is important to highlight the employment generated by the tourism sector," notes López.

Which destinations do we travel to with the most insurance coverage, and why?

The United States (22%), followed by Thailand (5%) and Japan (4%) are the top international destinations for Spanish tourists who traveled with insurance in 2018, according to InterMundial's Data & Analytics department. This trend is explained by the high cost of healthcare in these countries. In the specific case of the United States, a simple doctor's visit can cost up to 700 euros, and a single day of hospitalization can cost around 4,000 euros.

Demand for travel insurance for countries classified as medium-to-high risk, where there is a growing perception of insecurity, such as Turkey, Egypt, and Tunisia, has practically tripled between 2017 and 2019. Indonesia has also been affected recently due to two natural disasters in 2018: the Lombok earthquake in August and the Sulawesi tsunami in September. Following both disasters, insurance purchases increased by 233% and 153%, respectively.

Regarding Nepal, one of the trendiest destinations for adventure travelers, InterMundial's figures show a 124% increase in policy purchases in 2019, with sports insurance becoming an increasingly common choice for the Himalayan nation.

As for travel from Spain to other European countries, Italy, France, the United Kingdom, and Germany, in that order, are the destinations for which the most insurance policies have been purchased in recent months. In this context, it is worth mentioning the considerable increase in questions and inquiries from users planning a trip to the United Kingdom, as explained by Arturo Moreno, InterMundial's product manager: "due to the uncertainties surrounding Brexit and the country's potential exit from the European Union."

Countries with the highest claim rates

When evaluating the most problematic countries in terms of the volume and cost of incidents, the international destinations with the highest claim rates are USA (10%), Mexico (7%), and the Dominican Republic (5%). In general, and taking into account various factors related primarily to healthcare or administrative systems, the countries where it is most highly recommended to purchase insurance at this time are Canada, the USA, Venezuela, Honduras, China, India, Thailand, and Australia.

The incidents that generate the highest costs are repatriations or evacuations due to health problems of varying severity, whether due to illness, sudden accident, or injury, which account for 34% of the total. In second place is basic medical assistance (30%) and complex medical assistance (14%), which together account for 44% of the total cost generated by travel incidents, followed by outpatient consultations at 12%.

More than 50% of cancellations are due to illness and accidents

Illness (47%) and accidents (14%) are the main reasons that force us to cancel a trip, according to data collected by InterMundial. Together, these account for more than half of the recorded cases of trip cancellation over the last year. Failing courses (11%) and starting a new job (8%) are other frequent reasons for these situations, for which insurance guarantees the recovery of expenses incurred on bookings.

The main reasons why the insurance company has to issue a reimbursement relate to health issues and luggage problems. Consequently, serious illness of the insured (27%) and medical expenses related to any health problem (12%) top the list of the most common reimbursements made by the Spanish insurer. These are followed closely by luggage delivery delays (11%) and luggage damage (9%). These are the most common cases for which travel insurance provides financial compensation.

About InterMundial

InterMundial is Spain's leading insurance broker specializing in sports and tourism. It has offices in Spain's major tourist cities and 7 international commercial branches (United Kingdom, France, Italy, Portugal, Mexico, Brazil, Colombia, and Poland).