China’s Gift: Carona Virus Pandemic Threatens Insurers in two ways and one is way More Costly
Travel Insurance Providers may face claims for cancellations for travel plans yet taken. But the HUGE risk is covering costs for people ALREADY overseas. That’s way more costly
For people with travel insurance taken out prior to the #CaronaVirus being made a declared event, getting your money back will be relatively straight forward. In fact for most part, now that countries are closing their borders, the risks are going back onto the providers,because they cannot claim a lost booking if NO ONE is allowed to travel in. Refunds on flights will be easy to manage, and there will be a few claims for those bookings with a no refund element from the airline, but they tend to be at the lower cost market.
For Insurers the huge costs (potential losses) are having people STUCK overseas.
And for many Australians, traveling to Europe or North America during our summer, to work the ski fields, see the northern lights and so on is a hige draw card.
Travel Insurers need to start thinking about getting people home soon, or face months and months of paying for private hotels rooms, food etc for travelers stuck overseas. Instead of say a change over cost of change of plans costing a few hundreds or maybe even a couple of thousands, Travel Insurers like RACV, Travel Insurers Direct, and Covermore face accommodation and sustenance charges that could get into fifteen, twenty or thirty thousand dollars PER CLIENT if their customers are stuck in no fly or no travel zones. And let’s not talk about the costs if one of themis stuck in the rorting US medical system
China’s Gift has a fat tail. Right now, like an unhappy cat, that tail is swiping all the good trinkets off the bench!
Columbia University’s Earth Institute have just made publicly available their World Happiness Report, joining the expanding list of happiness reports emerging ultimately from Bhutan’s Happiness Index. There’s some interesting results in this one and some that you might expect were more obvious, like the idea that at a certain point, more money won’t make you…
Read More >Whilst the main thrust of Australian economic activity is said to be in the hands of the Federal Government, we should not overlook the significant role that Local Council Government’s can have. As the Federal Government wrestles with falling taxation revenues and an apparent inability to get the message across about distributing the income of…
Read More >Strategic Futurist Marcus Barber chats with Vicki Kerrigan on ABC Radio Darwin about the challenges facing the Northern Territory, the farming and mining sectors. In summing up the emerging signs of a clash between agricultural uses of land and land use for resource and mining needs, Marcus uses the phrase ‘Eat or Extract’ as the…
Read More >As most of you know I nominated this year as the 2012 International Year of Resilience because frankly, that’s what I reckon large chunks of the world need right now. The twitter feed is #2012YearofResilience. I sent a few of these tips out at the start of the year and have seen a few of…
Read More >A new city is due to emerge in Darwin over the coming couple of years and the key question is – what sort of attention is being paid to weather related disasters in the design phase? Paul Dale on ABC Radio Darwin chats with futurist Marcus Barber about planning and weather. You can download the…
Read More >Dorothea Mackellar’s poem ‘My Country’ is best known for its second verse – “I love a sunburnt country, A land of sweeping plains, Of ragged mountain ranges, Of droughts and flooding rains”. As vast tracts of Australia again face the prospect of massive floods I wonder if our Urban Planners ever consider the significance of…
Read More >Potentially the biggest area of untapped competitive advantage (and arguably one of the biggest areas where costs could be reduced) is within supply chains. Most approaches to Supply Chain Management are linear and isolated with one player trying to squeeze the other with no regard to the overall effect of the full supply chain. It’s…
Read More >There’s a shift underway in the mining industry that will likely catch Australian airlines out if they aren’t paying attention – the shift toward ‘remote’ mining. Remote mining is being pushed by the automation ability across all aspects of current mining technology, which at the basic level, means that fewer humans are needed on site…
Read More >Simple question really. Or is it? In this quick article I provide an overview of the difference between strategy that is D.E.A.D and A.L.I.V.E Think of it as a potential ‘do this’ collection for your Organisation You can download the article for free here – ‘Is your Organisational Strategy D.E.A.D or A.L.I.V.E?’
Read More >Lots of thoughts for the year already underway, with some covering a range of ideas from ‘don’t cut corners on relative incidentals when the project is significant for you’ to ‘you can’t change your approach if you keep thinking inside the same box’. But for now a reminder about planning for your future: If you…
Read More >