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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 in 2022

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 only if one of the following occurs:

  • 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?
Policy covers up to the amount shown on the Schedule for quarantine costs if a Covered Person needs to quarantine after contracting COVID-19 whilst travelling.

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.


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 1 December 2021. Chubb Business Travel Insurance is issued and underwritten by Chubb Insurance New Zealand Limited (Company No. 104656, FSP No. 35924). This FAQ section provides you with general information on Chubb Business Travel Insurance and does not take into account your personal circumstances, objectives, financial situation or needs. You should read the Chubb Business Travel Insurance Policy, which sets out the full insuring clauses, definitions, schedule, extensions, terms, conditions, exclusions and limits of liability, having regard to your own circumstances, before making any decisions about this insurance policy and contact your financial adviser to obtain financial advice as required. 

Have a question or need more information?

Contact us to find out how we can help you get covered against potential risks