That’s right you heard it right. Insurance companies are willing to fork over hundreds of thousands of dollars if you get COVID-19 while on vacation and the airlines are paying for your premiums too.
Now if anyone knows how an insurance company works, they know the most basic thing. Payments vs liability, simply put, can they get more money out of insurance premiums then they can out of paying medical bills for COVID-19. They clearly see the low risk to them as payouts for losses claimed will be less then the money paid to them in insurance premiums.
Look at it this way. If the insurance had to pay out just one air ambulance to the max out of $100,000, it would need approximately 3500 traveller’s COVID-19 paid premiums to cover it.
It may seem like they are taking a big risk but when you understand how insurance companies assess their risks and balance profitability, you will know that they have predicted a very low risk versus reward.
So what can we conclude from this? The confidence of the insurance company along with the most unprecedented airlines, resorts and transportation safety standards have shown us all that travel is safe and will only get safer.
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By: Hidar Elmais