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COVID-19 and the public perception of travel insurance

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  • Tan, David
  • Caponecchia, Carlo

Abstract

•Many travellers have had their insurance claims denied during the COVID-19 crisis.•Catastrophic risks are not diversifiable by insurers and excluded in coverage.•Travellers will likely revise the perceived value of travel insurance downwards.•This will exacerbate the economic fallout via a reverse moral hazard effect.•We discuss recommended actions for stakeholders.

Suggested Citation

  • Tan, David & Caponecchia, Carlo, 2021. "COVID-19 and the public perception of travel insurance," Annals of Tourism Research, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:anture:v:90:y:2021:i:c:s0160738320302504
    DOI: 10.1016/j.annals.2020.103106
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    References listed on IDEAS

    as
    1. Caponecchia, Carlo & Tan, David T., 2019. "Exploring the traveller underinsurance problem," Annals of Tourism Research, Elsevier, vol. 76(C), pages 343-345.
    2. Jesper Akesson & Sam Ashworth-Hayes & Robert Hahn & Robert Metcalfe & Itzhak Rasooly, 2022. "Fatalism, beliefs, and behaviors during the COVID-19 pandemic," Journal of Risk and Uncertainty, Springer, vol. 64(2), pages 147-190, April.
    3. Doherty, Neil A & Dionne, Georges, 1993. "Insurance with Undiversifiable Risk: Contract Structure and Organizational Form of Insurance Firms," Journal of Risk and Uncertainty, Springer, vol. 6(2), pages 187-203, April.
    4. William Choi & Lan Liang, 2007. "Reverse moral hazard of liability insurers: evidence from medical malpractice claims," Applied Economics, Taylor & Francis Journals, vol. 39(18), pages 2331-2340.
    5. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, March.
    6. Seabra, Cláudia & Dolnicar, Sara & Abrantes, José Luís & Kastenholz, Elisabeth, 2013. "Heterogeneity in risk and safety perceptions of international tourists," Tourism Management, Elsevier, vol. 36(C), pages 502-510.
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    Cited by:

    1. Assiouras, Ioannis & Vallström, Niklas & Skourtis, George & Buhalis, Dimitrios, 2022. "Value propositions during service mega-disruptions: Exploring value co-creation and value co-destruction in service recovery," Annals of Tourism Research, Elsevier, vol. 97(C).
    2. Lázaro Florido-Benítez, 2022. "The Safety-Hygiene Air Corridor between UK and Spain Will Coexist with COVID-19," Logistics, MDPI, vol. 6(3), pages 1-22, July.
    3. Jiam Song & Kwangmin Jung & Jonghun Kam, 2023. "Evidence of the time-varying impacts of the COVID-19 pandemic on online search activities relating to shopping products in South Korea," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-12, December.
    4. Yeongbae Choe & Hyesun Kim & Youngjoon Choi, 2022. "Willingness to pay for travel insurance as a risk reduction behavior: health-related risk perception after the outbreak of COVID-19," Service Business, Springer;Pan-Pacific Business Association, vol. 16(3), pages 445-467, September.
    5. Kai Xin Tay & Jennifer Kim Lian Chan, 2023. "Travel Confidence Reviving Tourism Industry: Is the Vaccination a Solution?," Sustainability, MDPI, vol. 15(5), pages 1-15, March.

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