Travel insurance companies to pay out £275 million

British travel insurers say they will pay out at least £275 million to travellers due to the coronavirus – the highest payout on record.

Until now, the highest figure for cancellation payouts was the £148 million paid in 2010 when the Icelandic volcanic ash cloud hit.

The figure was released today by the ABI (Association of British Insurers), which said the vast majority of payouts will be for cancellations.

It said companies are expecting 400,000 coronavirus claims, compared to the 294,000 cancellation and disruption claims received in the whole of 2010, the previous highest year on record for such claims.

The coronavirus pay-outs dwarf the £62 million cancellation and disruption payments following the 2010 ash cloud.

MMP