Could the travel insurance industry do better?

Steve Williams, head of travel insurance atinsurance to cover me for things like this, so how
Confused.com, offers up his thoughts on thecan insurers say I'm not covered? Well, part of
volcanic ash chaos: Over the last week I canme thinks the same thing. But, insurance providers
definitely say I've seen my fair share of newsare describing this incident as an "Act of God".
and commentary about the volcanic ash spewingThis technically means an event outside of human
out from Iceland. Now, as flights have begun tocontrol and hence gives them a legal basis to
take off again, I'm reflecting on the issues thisdecline claims as a volcano, it can be argued, fits
unprecedented event has thrown up, and how thethis definition. If you ask me, it's a pretty poor
situation has been handled.argument which may cause people to lose faith in
Since the volcano erupted, airlines have beeninsurers and make them question the point of
claiming they are losing millions of pounds everyhaving a travel insurance policy at all.
day, and, whilst I sympathise with them, theyThe Aftermath Of The Volcanic Ash Chaos: So
have a legal obligation to their booked passengers,what now? Insurers will likely spend months
and should have a contingency plan in place forwading through claims against the chaos and this
instances like this.may have a negative knock-on-effect to the
At the same time, the travel insurance industrydetriment of consumers. What I mean by this is
could also have taken a uniform approach tothat, potentially, a large wave of claims will be paid
dealing with the travel chaos, but at present, thisby insurers. But, should this happen, my prediction
is not the case. It's at times like this that peopleis that the cost of travel insurance will rise to
expect their travel insurance policies to providecover the losses they will suffer.
for them, but it seems some people will beThis is bad news for customers, but perhaps
disappointed. Travel insurers are adoptingsome good could still come out of it. With all the
differering approaches to what they will cover innegative headlines about insurers using the "Act of
relation to volcanic ash claims.God" clause to avoid paying claims, maybe they
If you want to know what our travel insurancewill see this as an opportunity to offer policies
providers are saying about what is covered andthat cover for every eventuality. But if this is
what isn't, you can see all responses we receivedsomething we, as consumers, want, we should
from our partners on our Editor's Blog. In thealso be prepared to pay more for it.
meantime, you might be thinking; ‘I buy travel