ETI sums up the results of 2020. This was a year when the plans of almost everyone on the planet had fallen apart, the lifestyle changed. Covid-19 has now become an integral part of our normal life and will likely continue to play an important role in the near future. Global opinion leaders predict that when the pandemic is finally brought under control, the world will change a lot: more work from home, less travel, more reliance on digital technology.
The tourism industry reports a decrease in tourist flow in 2020 by more than 70%. Almost the same drop in international passenger air transportation (approximately 72% of the volume of 2019) is indicated by the Ukrainian aviation business. The company "European travel insurance" summed up the results of its work in 2020.
If in 2019 the ETI company insured almost 2 million tourists for the first time (1,804,054 tourists), then, in 2020, 825,328 people used the company's services. The amount of collected premiums for 2020 amounted to UAH 182,440 thousand, which is 43% less than the total amount of premiums collected in 2019. In 2020 the company's net profit after taxation under the IFRS system amounted to UAH 24 million 497 thousand.
The year 2020 has changed the attitude towards travel insurance and its certain types. At the end of the past year, we observed a more increased demand from tour operators and individual tourists for financial risk insurance in case of travel cancellation or interruption. If in 2019, with the total number of insured 1,804,054 tourists, financial risks in the event of travel cancellation or interruption were insured by 389,094 tourists, which amounted to 22% of the total number of insured, then the new rules for entry into foreign countries due to global pandemics changed this ratio, and in 2020, with a total number of insured 825,328 tourists, financial risks were insured by 313,219 people, which amounted to 38% of the total number of insured.
In 2020, the company registered 8,924 insurance events with tourists, the total amount of insurance payments amounted to UAH 68 million. In 2020, the ratio of events registered by the company also changed towards an increase in the share of requests due to the occurrence of an insured event due to cancellation or interruption of travel. In 2019, a total of 16,772 cases were declared, of which 660 were due to travel cancellations, which amounted to 3.9% of the total number of reported cases, 95% were accounted for by medical insurance claims and 1.1% were other risks, such as luggage, accident and public liability insurance. In 2020, with a total number of insured events of 8,924, financial risks amount to 9.8%, namely 875 cases, 89.5% accounted for insurance claims for medical expenses, 0.7% all other risks.
The total amount of payments in connection with the trip cancellation or interruption in 2020 amounted to 19 million 543 thousand UAH, in 2019 it was 15 million 673 thousand UAH. In total, over the past year, 840 payments were made in connection with the trip cancellation or interruption, 498 such payments were in 2019.
All of us, tourists and travel companies, are looking forward to the tourism industry starting to recover in the spring of 2021. According to Ukrainian officials, if everything develops according to a favorable scenario, then in 2021 the volume of passenger air traffic in Ukraine will reach half of the volume of 2019, and already in 2023 a full recovery of the volume of international air traffic that was before the start of the pandemic is predicted.
"European Travel Insurance" stays ALWAYS WITH YOU AROUND THE WORLD! and continues to actively work for Ukrainian tourists to help them avoid additional costs and financial losses in unforeseen situations before, during and after travel.
