Surge in Business Travel Spurs Evolving Insurance Needs and New Risks (Risk & Insurance)

Surge in Business Travel Spurs Evolving Insurance Needs and New Risks

  Tuesday, January 9th, 2024 Source: Risk & Insurance

Business travel is experiencing a notable resurgence in 2023, with an estimated $1.03 trillion spent globally. This increase is not only fueled by corporate travel but also by non-profits and educational institutions engaging in sponsored trips. The recovery is expected to reach pre-pandemic levels by the end of 2024, as per the Global Business Travel Association. This revival, however, brings a new set of risks including post-COVID quarantine requirements, the rise of ’bleisure’ (blended business and leisure travel), and escalating geopolitical risks.

Organizations sponsoring travel are now recalibrating their risk assessments and insurance policies to address these evolving challenges. James Walloga, Senior Vice President at Allied World, notes that ’bleisure’ travel, blending professional and personal travel, is increasingly popular, requiring adjustments in insurance policies. Traditional business travel risks, like medical emergencies abroad, remain a concern, and travel insurance policies are essential for organizational travel.

Modern travel insurance typically covers emergency medical needs, accidental death, and assistance during travel disruptions and evacuations. The need for comprehensive coverage, including travel inconvenience benefits, is more pronounced than ever. Technology, like mobile apps, plays a crucial role in providing travelers with immediate access to critical insurance information and emergency services.

Insurance carriers are responding to these new demands by tailoring policies for ’bleisure’ travelers and enhancing their role in risk management and mitigation. This includes detailed planning for travel to higher-risk destinations. As business travel continues to grow and evolve, organizations and insurers alike must adapt to ensure the safety and well-being of travelers.

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