Changing Coverage and Costs of Insurance

The world is changing indeed. But of course, whether or not communication technology has improved the quality of social life is still a legitimate debate. Whether or not the information highway has enhanced education is still contested and whether or not breakthroughs in medical science and technology has made modern life has improved physical well-being remains empirical questions.

One thing is sure though: the world has not gone safer. Natural calamities has increased in frequency and intensity, climate change has made whether unpredictable, threats of terrorism persist in every corner of the globe, and risks of petty crimes like robbery and pervade right in our neighbourhood and doorsteps.

And so while developments in technology and policy have made travelling a relatively easier activity than it was a decade ago, it has come with more risks to life and limb. Or even as the modern complexion of work has made crossing borders almost natural and common, there are still safety concerns that have remained problematic despite political and social adjustments to secure travelling.

The Increased Need for Travel Insurance

It is for this reason and under this prevailing socio-political conditions that travel insurance has not only remained relevant but it has also taken a more prominent role in safety and security. What international, regional and local policies cannot provide, insurance companies continue to do so.

In a nutshell, travel insurance protects travelers from unexpected events including illness, or injuries in the events of natural disasters, acts of terrorism and simple accidents. Modern travel insurance also protects insurance holders against inconveniences and stress of lost baggages, flight cancellations and rebooking or rescheduling needs that just as common risks when travelling. And pretty much most of travel insurances today still bear these basic features.

Changing Insurance Services

But while the advantages of having a travel insurance and the system of provisions are relatively the same, like providing medical and hospital care, funeral services, and monetary coverage for lost belongings, some of the services of modern insurance has changed.  For one, it is now possible to compare insurance costs and premium on-line. In fact, in Singapore, travel insurance transactions, in addition to advertising and on-line travel insurance promotions, has become a major trade in the internet next only to on-line shopping.

And although travel insurance can still be classified depending on coverage (e.g. comprehensive versus accident insurance), the coverage may include more extensive events like “acts of God” coverage which  entitles a person to claim damages caused by catastrophic incidents like floods, storms, hurricanes, earthquakes or typhoons.

In terms of cost, monthly payment of travel insurance still depend largely on the type of coverage. But newer variables have come into play and affected the cost of insurance coverage. For instance, travel insurance companies now distinguish high-risk areas such as countries with low-intensity conflicts and disaster vulnerable zones and travel insurance rates for going to these places are more costly than going to other ‘safer’ destinations. Even crime rates and advisories from embassies considerably affect cost of insurance today.

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