Geopolitics, climate events and increasing uncertainty
Stéphan Malvoisin, Senior Vice President, Partnerships, US, at Crisis24, walks ITIJ through how to manage the top travel risks of this year
Despite geopolitical and economic uncertainty, 2024 is poised to be a record-breaking year for travel. As part of a continuation of the post-Covid-19 travel boom, many people plan – or hope – to spend some of 2024 away from home, whether for personal or business travel. However, in today’s rapidly changing landscape, natural disasters, major political conflicts and other rising risks warrant education and caution for both insurers and the insured.
Geopolitical risks beyond the headlines
Beyond the conflicts covered in daily headlines, each area of the world has additional societal tensions travellers should be cognisant of before planning their international trips. Some countries pose greater risks than others, and these levels can change rapidly border to border. Travellers should make sure they are aware of any major events that could increase the risk of conflict and impact their trips, such as elections or organised protests.
On a practical level, travellers in 2024 should be aware of the escalating tensions between Taiwan and China; ongoing conflicts and unrest in in the Middle East; and organised crime in Mexico. These conflicts and risks can also affect neighbouring countries, making it important to consider risks both locally and regionally.
Additionally for insurers, complex conflict environments have created nuances in coverage. For instance, insurance coverage is nullified by declarations of war. However, the recent conflict between Israel and Hamas called into question how we define ‘war’ in a legal sense. It was determined that this conflict did not correspond to the legal definition of war, which requires a formal declaration and to be between two countries or states. This is precedent-setting and underscores the nuances that insurers will need to navigate in their coverage due to heightened risks at the geopolitical level.
Unpredictable climate events and natural disasters
Difficult to predict and typically extremely dangerous, natural disasters are another top risk that travellers should research and prepare for. Spanning from minor inconveniences, such as a delayed flight, to extreme destruction, natural disasters impact vital resources and infrastructure, creating the potential for major damage, disruption and potential injuries. In 2023, natural disasters struck many popular tourist destinations, resulting in deaths, injuries and displacement. From a devastating earthquake in Turkey, to Hurricane Idalia in Florida, and flash floods in Italy, natural events like these affect locals and tourists alike and are becoming more frequent. Other climate-related issues, such as extreme heat, may not seem significant, but can quickly become dangerous for travellers, especially when they are caught unprepared.
While travellers cannot be expected to predict these events, providing them with access to trip preparedness information, an awareness of local risks and access to granular intel for them to be able proactively manage and prepare their travel is critical.
The recent conflict between Israel and Hamas called into question how we define ‘war’ in a legal sense
Avoiding criminal activity
To a certain degree, crime poses a risk to all countries. However, some destinations should be researched more thoroughly to determine whether they are safe to visit and if any extra precautions should be taken. Travellers, especially those visiting higher-risk locations, should keep this in mind as they create their itineraries.
With the rise of ‘bleisure’ travel, combining work and personal time on a trip, many employers assume that their duty of care does not extend to the leisure portion of the trip. This would be incorrect, especially if the travel arrangements have been purchased or made by the company. This underscores the importance of ensuring a deep and accurate understanding of a destination’s risk environment, including crime risk.
For example, the US has issued recent advisories surrounding travel to Mexico, a popular destination for both business and leisure travel. This advisory is largely due to the risk posed by organised crime. Mexican drug traffickers have expanded their reach across the region, which can pose dangers to travellers. The impacts of this trend have also been felt in Ecuador and Brazil.
Travellers should be encouraged to pay close attention to these kinds of advisories, closely monitor the media and seek advice from experts who can keep them better informed on real-time details. Experts can provide individuals and businesses with precise information about locations to avoid and share insights to help ensure that travellers are protected during their time in higher-risk locations.
How insurance providers and businesses can help
Between heightening geopolitical conflicts, an increase in natural disasters and proliferation of crime, there are many reasons travellers should stay alert and adaptable this year. While business and leisure travellers should not be deterred from planning trips, they should be aware of these risks before selecting their destinations, and stay closely up to date on risks that could turn successful trips into dangerous events.
To properly manage travel risks, insurers, employers and travellers need to leverage more granular intelligence – both in advance of and during their trips. Insurers must seek out tools and platforms that can synthesise these risks and provide their clients with accurate, hyperlocal information, as well as the ability to notify or feed their clients risk-related information. For businesses managing the safety of their staff, it is important to have very precise local and real-time information – often down to even suburb or neighbourhood level. Technological advances through artificial intelligence (AI)-based platforms and mobile phone tracking or ‘single pane of glass’ data analysis allow both users and security managers to communicate easily and access the most up-to-date and relevant intelligence.
When it comes to travel during uncertain times, travellers don’t know what they don’t know, and therefore cannot take the necessary steps to avoid or mitigate their risk. However, when armed with correct, timely and accurate information, travellers can expect to immerse themselves in their destinations and return home safely.
When armed with correct, timely and accurate information, travellers can expect to immerse themselves in their destinations and return home safely