Tailored Travel Insurance: Assessing Your Risk Profile
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Before you skip down and check out your risk category, let’s ask ourselves this:
What risk factors do travel insurance underwriters consider?
It can be useful to understand some of the key variables your travel insurance company considers when assessing your risk profile and related premium charges. Of course, the technical nuances of underwriter are beyond the scope of this article (thank goodness …).
Let’s look at variables that are specific to you and the decisions you make.
Destination
Your travel insurance provider will weigh the risk of your destination’s potential for:
Political instability
Crime rates
Health epidemics
You should expect higher insurance premiums if you choose to visit destinations impacted by these types of risks.
Age
Statistically, older travelers are more prone to experiencing health issues and emergencies. Additionally, as we grow older, the probability of having pre-existing medical conditions or chronic ailments that may necessitate medical attention while traveling abroad also rises.
Your age can impact your premium and the coverage level offered by the insurance company.
Health Status
Your medical history can impact your premiums, coverage, and determine if you need to obtain a pre-existing conditions medical waiver.
Your risk profile can increase if you have known medical conditions as such may require specialized medical care or emergency treatment while abroad.
Travel History
Like other types of insurance like home and auto, your previous travel claims history provides insights into your propensity for future emergencies.
If you have a history of frequent claims or accidents, you may be deemed high risk and subject to higher premiums and reduced coverage.
Travel Frequency
If you are a frequent traveler, you face increased exposure to potential hazards or accidents as each trip increases the probability of experiencing an emergency.
Your travel insurance provider will take your expected travel frequency into account when assessing your risk and offer you tailored coverage options to address your unique needs and risk profile.
Trip Duration
The length of your trip is directly linked to the level of risk associated with your travel insurance coverage. Longer trips inherently increase the exposure to potential emergencies, accidents, or disruptions, thereby impacting insurance requirements and costs.
Nature of Travel
It likely comes as no surprise that a vacation based on sightseeing in a well-developed urban area is less risky than mountain climbing in sub-zero temperatures. Adventure travel including scuba diving, hiking, extreme sports, are inherently riskier.
Thankfully, the travel insurance industry has created tailored policies designed specifically for travelers willing to engage in risky activities associated with adventure travel.
Now that we’ve looked at some of the common risks associated with travel, let’s see which risk categories align with your profile.
Top 10 Traveler Risk Profiles
Which category fits your profile?
We've identified a sample of travel insurance coverage tailored to each risk category. You may also be interested these coverages that apply to most travelers:
Interruption for any reason
Cancel for work
①
Travelers to Developing Countries
These countries can offer exotic landscapes and a rich cultural experience. Venturing into these nations may also expose you to limited access to quality healthcare, heightened prevalence of infectious disease, unsafe infrastructure, and political instability.
You should thoroughly research your destination including its local customs and regulations. Your planning should include essential steps like how to pack prescription drugs, emergency medical planning, avoiding high-risk areas, and using a knowledgeable travel agent when choosing transportation and accommodation options.
②
Adventure Travelers
Adventure travel continues to gain interest and includes activities like hiking at high elevations, mountaineering, rock climbing, scuba diving, parasailing, and extreme sports.
You need to prioritize safety above all else and ensure adherence to safety guidelines and study all emergency protocols to mitigate the risk of you and your travel companions. You can minimize your risk by investing in quality equipment, obtaining appropriate training, and hiring professional guides.
Read your travel insurance policy carefully as your seemingly routine nature hike may be deemed high-risk if you use certain equipment or ascend over a certain elevation.
③
Solo Travelers
If you are a solo traveler you possess an inherent freedom that may lead you off the beaten path. This propensity to explore new terrain, customs, and cultures can quickly increase your risk profile. It demands an increased alertness and readiness as concerns about safety and security inevitably arise.
Take a proactive approach by familiarizing yourself with the local customs and laws of your destination before embarking on your trip. Once your adventure commences, ensure you have access to a reliable communication device, carry essential safety tools, and stay in regular contact with trusted contacts.
④
Senior Citizens
If you are a senior citizen, you likely have more travel experience than most. You are also likely aware that your age naturally leads to an increased likelihood of health-related issues while travelling abroad.
Contingency planning is critical and travel insurance can play an integral role in your plan.
You may be able to secure a pre-existing conditions waiver to ensure coverage of any such conditions while travelling. Typically, this coverage needs to be purchased within a specified period after the initial travel insurance policy is finalized.
While travelling, you need to securely carry your prescription medication and ensure access to the medical services which may include a local hospital, or require medical evacuation when in a remote location or one with limited medical resources.
We recommend you carry all essential medical documents and a contact list of trusted family, friends, and medical providers. If you have a disability or accessibility concerns, your travel insurance provider can help secure appropriate transportation and accommodation prior to embarking on your next adventure.
⑤
Business Travelers to High-Risk Areas
You need a proactive strategic travel plan if your business endeavors require you to visit geopolitical hotspots and navigating unfamiliar territories.
You must prioritize your personal safety knowing you will be faced with potential political instability and elevated crime rates. Be proactive and thoroughly research your destination while engaging your travel agent and travel insurance services team.
Be sure to partner with reputable local contacts. In some cases, you may need to consider enrolling in security training programs well before your departure date.
⑥
Backpackers
Backpacking your way through multiple countries while on a shoestring budget and immersing yourself in multiple cultures and experiences is definitely a bucket list trip.
Unfortunately, these unique adventures are often fraught with their share of risks, including theft, scams, and safety hazards. You need to prioritize safety over spontaneity, secure your belongings, and be cognizant of local customs and regulations.
⑦
Frequent Travelers
If you are a frequent traveler, you are well aware of the myriad of travel-related challenges and disruptions that can occur at any moment. You do not need to stand alone and face flight cancellations, missed connections, delays, lost luggage, and health issues.
Be proactive and secure travel insurance coverage tailored to your unique needs. In addition to the typical financial coverages, you will appreciate the breadth of services provided which may include travel, medical, concierge, and identity theft.
⑧
Long-Term Travelers
A long-term trip provides you with a unique opportunity to dig into the culture and experience personal growth. It’s not always easy. Adapting to a way of life in a foreign country comes with its own unique set of challenges.
You may need to overcome potential language obstacles while adjusting to a foreign culture, laws and regulations, and employment landscape. You will also need to forge connections with the local community, build a social network, and quickly navigate the healthcare system to determine how it can meet your unique needs.
Your length of stay will increase your risk profile as will increasing the number and types of countries visited.
⑨
Students Studying Abroad
Studying abroad is a great way to explore other parts of the world while pursuing academic enrichment and cultural immersion. These new worlds can have their own unique challenges from financial and academic stress to adjusting to a new culture and potential safety concerns.
Your risk profile increases with the length of your stay and the risks associated with your host country. Be sure to engage in orientation programs, build a network of friends, and lean into the resources provided by your institution.
⑩
Travelers with Pre-existing Medical Conditions
It can be very stressful trying to plan a trip while incorporating your pre-existing medical condition. You face unique challenges whether you are managing a chronic illness, recovering from surgery, or rehabilitating a recent injury.
Prior to commencing your trip, consult with your healthcare professional team as they can assess your fitness for travel. You should also ensure you have enough prescription medications and medical supplies. It is also a good idea to obtain copies of all pertinent medical documents.
Be proactive and research the healthcare system of your host country. You need to be prepared in case your condition flares up while abroad and requires specialized treatment that may require emergency medical evacuation or other costly measures.
Many travel insurance providers offer a waiver of pre-existing conditions if such is purchased within a specified period from the date you finalize your policy.
FINAL THOUGHTS
Now that you're familiar with the risk factors travel insurance underwriters consider, it's time to embark on your plan for your next adventure. Secure your tailored travel insurance and enjoy safe travels while exploring the world with peace of mind!
