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As borders across the globe reopen, the long-term impacts of a global pandemic have led to a number of factors driving up medical and travel costs. The insurance industry as a whole has been faced with a significant surge in medical claims in the past year and has seen a rapid increase in the cost of medical treatment worldwide, a trend we expect to continue in 2022 and beyond.

Trends affecting the travel insurance market

1. The Covid-19 Effect

  • Covid-19 infections pre-departure and whilst on trip are resulting in increased trip cancellations and necessary changes to planned expenses.

2. Higher Travel Costs

  • Commercial flight costs increased 3.3% in 2022. Hotel rates and on the ground transport prices have risen. 

3. Medical Costs

  • Higher utilisation of medical services in 2022, particularly in specialist fields and telehealth services.
  • Increase in air-ambulance costs due to additional equipment needing to be carried by air.

What is contributing to higher travel and medical costs?*


  • Airfares
    • Jet fuel prices have increased by 60% already in 2022, resulting in more expensive airfares.

  • Operational costs
    • Costs such as additional protective equipment and infection control have increased operational costs for the travel and medical industries.

  • Evacuation costs
    • More travellers are needing to be evacuated from their travel destinations due to facilities being overwhelmed with Covid-19 patients.

  • Air Ambulance
    • Air ambulance costs have risen approx. 15-30% due to the requirement to carry a portable incubator and the need for additional landing permits.

  • Cancellation claims
    • Increased insurance claims for travel cancellation due to insureds contracting Covid-19 and not being able to continue with their travels.
  • Telehealth / mental health services
    • It is predicated that the number of covered travellers accessing telehealth physician/GP services will grow substantially by the end of 2022.

*Source: WTW 2022 Global Medical Trends Survey Report. Download full report

Your top 5 Covid-19 related FAQs answered


Does Chubb BTI cover COVID-19 related medical expenses for an overseas business trip?
Policy includes cover up to the amount shown on the Schedule for medical and medical evacuation / repatriation costs if COVID-19 is contracted while travelling overseas.

Does Chubb BTI cover COVID-19 related medical expenses for a directors’/executives’ private overseas travel?
Policy includes cover up to the amount shown on the Schedule for medical and medical evacuation/repatriation costs if COVID-19 is contracted while travelling overseas.

Does Chubb BTI provide cover if a person contracts COVID-19 and needs to change or cancel their travel plans?
Policy includes cover up to the amount shown on the Schedule for loss of deposits, cancellation and curtailment expenses for losses such as but not limited to:

  • A Covered Person dies unexpectantly from COVID-19
  • A Covered Person contracts COVID-19
  • The Covered Person, a Close Relative, Close Colleague or travelling companion of the Covered Person is directed to quarantine by a health authority because of a close contact with a positive or suspected positive case of COVID-19
  • A Close Relative, Close Colleague or travelling companion of the Covered Person contracts COVID-19 or dies unexpectedly from COVID-19

Is cover provided if a person needs to quarantine whilst travelling?
Cover may be provided up to the amount shown in the Schedule, under Section 6 – Cancelation and Disruption, if the covered individual is directed by a health authority to quarantine after contracting COVID-19 whilst traveling.*

Does a person need to be vaccinated against COVID-19 to be covered?
No, this is not a condition of the policy. However, the Covered Person must abide by travel vaccination requirements set out by a country, territory, accommodation and transport providers etc.

*A loss which is a result of Incidental Private Travel or Directors and Executives Private Travel shall be limited to a maximum of $20,000 per Covered Person per event.



Example of a COVID-19 Related Business Travel Claim

Additional resources for brokers

A number of factors have led to general instability and uncertainty in today’s market, and we know these are challenging times for our brokers. Chubb is here to support you and your business, and equip you with the insights and tools to be able to demonstrate your value, and the value of adequate insurance coverage, to your clients. 

What does travelling in the new norm look like?

Selling in Uncertain Times

Chubb’s campaign: ‘Selling in Uncertain Times’ provides brokers with the tools and resources to be able to have effective conversations with clients in today’s challenging market. As your clients’ needs shift, you need to ensure your conversations go far beyond price, to focus on the value you bring.

Chubb Return to Travel Survey

In 2021 Chubb conducted a global survey to find out the concerns of business travellers today.

Contact Us

To find out more about Chubb’s A&H solutions, please contact your local Chubb representative.



Covid-19 cover is available for new business and renewals effected on or after 18 November 2021. Chubb Business Travel Insurance is issued and underwritten by Chubb Insurance Australia Limited ABN 23 001 642 020, AFSL No. 239687 (Chubb). Chubb only provides general advice and does not consider your objectives, financial situation or needs. To decide if this product is right for you, please read the Business Travel Insurance Product Disclosure Statement (PDS) and the Supplementary Product Disclosure Statement (SPDS) (the SPDS is available from your broker and contains the terms and conditions specific to COVID-19 cover). The Target Market Determination (TMD) is available here. Terms, conditions, exclusions and limits apply. Chubb Business Travel Insurance (BTI) - Top 5 things your clients need to know about Chubb’s COVID-19 cover for business travellers, Australia. Published 03/2022. ©2022 Chubb Insurance Australia Limited. Chubb®, its logos, and Chubb.Insured.SM are protected trademarks of Chubb.

Have a question or need more information?

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