Over the last few years, claims made for medical expenses through travel insurance policies have increased by four times due to a larger number of older adults taking sabbatical years from work and taking exotic vacations.
The Association of British Insurers (ABI) has released their data that has shown that the cost of overseas illness rose from approximately $122 million in 2004 to approximately $454 million in 2010. The number of claims rose from 120,000 in 2004, to 337,000 in 2010.
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According to the ABI, even though the cost of medical expenses have increased more quickly than the majority of inflations, it is the age of the policyholders who are making the claims that is playing a significant role in the rising claim numbers. ABI spokesperson Malcolm Tarling said that people are traveling farther away from home, and are living longer than ever before “but the sad fact is that the older you are, the more likely you are to fall ill.”
He went on to explain that travelers who are 65 years of age or older have triple the likelihood of making an insurance claim on their travel policy than those who are age 35. Similarly, individuals who are over the age of 85 are more likely by eight times. At the same time, the average medical expense claim made by a travel insurance policyholder over the age of 65 is almost three and a half times more costly than that of a policyholder younger than 50 years old.