Travel insurance takes off

2004/08/20

Over the years South African companies have significantly increased their business dealings in Africa, and this has, in turn, augmented the travel insurance business. In fact, business relations between South Africa and the rest of Africa have boomed especially since the launch of the New Partnership for Africa’s development. Many South African experts, such as engineers, construction workers, geologists, miners and telecom specialists, have permeated the African market.

Further, in most instances, experts such as these travel with their families, making travel insurance a necessity.

This has been supported by the need for medical support services, which are often unavailable in the third World African countries.“About 50 % of international trade insurance sold locally is serviced by Europ Assistance SA,” says CEO Gys Steyn.

Europ Assistance is the second largest worldwide assistance group worldwide covering 208 countries. In October 2002, the group merged with locally-founded Care Assist to form Europ Assistance SA.

Through its provision of medical emergency evacuations from sub-Saharan Africa, business expanded by 30% last year, and is anticipated to grow at a similar rate this year.
The company provides assistance services for travel insurance policies on behalf of insurance underwriting managers such as Travel Insurance Consultants (TIC). According to Steyn, 25% of the evacuation cases are malaria related, while the remainder include emergency cases such as accidents and heart conditions. Evacuated people are not always brought back into South Africa, as sometimes the country may be closer to Europe, explains travel call centre manager Diana Sharp. The cost of an evacuation varies between R50 000 and R400 000. For risk assessments the company looks at pre-existing conditions such as heart conditions and chronic medication.

In the case of a claim, Europ Assistance handles all the processing procedures and payment on behalf of the underwriters, explains Steyn. “Since South Africa’s first democratic elections in 1994 there has been an influx into Africa of South Africans who need this kind of support,” says Steyn. Consequently, there is a demand for this support in African countries where there is a lack of medical back-up. The state of that back-up was illustrated recently by pictures of Zimbabwean ambulances being drawn by oxen. Other problems are experienced with blood quality and the associated danger of HIV/Aids. Moreover, due to a lack of infrastructure and logistics, airports are often closed, making an evacuation even more challenging.“Despite the fact that there are private clinics in African countries, these are few and far between,” adds Steyn.

The group aims to extend its business in Africa by launching an international medical insurance product for African citizens. Steyn tells Engineering News that the company will launch this product early next year offering African citizens the opportunity to come to South Africa for medical treatment.