BIBA Research Shows Dangerously Low Levels of Terrorism Cover

New research by the British Insurance Brokers’ Association (BIBA) has shown that 78% of travel insurance providers surveyed have a terrorism exclusion.

Further to this, only 29% of those providers who do not offer terrorism cover allow a ‘write-back’ facility for medical expenses and repatriation. Meaning half of travellers have no terrorism cover at all.

BIBA surveyed 75% of providers offering travel insurance to determine what proportion of the industry offers terrorism cover to consumers purchasing travel insurance. The results show that of the companies involved, 78% exclude terrorism cover. The research also revealed that:
• 49% have a total exclusion with no write back
• 29% have an exclusion but write back medical expenses (and sometimes other areas)
• 5% have no terrorism exclusion
• 7% companies did not make the policy information available to the public

Commenting on the findings of this research Graeme Trudgill, Technical Services Manager at BIBA said: “We find these figures striking. They clearly demonstrate that there is consumer detriment around the provision of terrorism cover in travel insurance policies.

“Our previous research revealed that 72% of customers who recently bought travel insurance, from a travel agent or tour operator, had not been advised whether terrorism cover was included in their policy.

“This new data increases our concern that many people are not being made aware that their policy excludes terrorism cover. It is absolutely vital that travel insurance providers inform consumers of all significant exclusions.

“We have been campaigning for the Treasury to fully regulate the travel insurance industry to ensure that this happens and guarantee that all consumers are treated fairly.”