I hope that you have enrolled with Early Bird!

This year, we have seen the cost of travel medical insurance go up across the board for all insurance plans available in the market.

At Medipac, we experienced an increase in claim volume, an increase in the cost of medical services both in the United States and around the world, a decrease in the value of discounts that are offered by various medical service providers and a devaluation of the Canadian dollar in recent months, which just happens to coincide with when we are paying your claims in foreign currency.

We are not alone. This is happening to all travel insurance providers protecting Canadians, both in the United States and elsewhere. Our analysis of the market is showing premium increases of 12 to 15 per cent and more, regardless of age, health or trip length, which tells us that the market has had a tough year and is preparing for a challenging future.

At the time of writing this column, we were pleased to see that our loyal clients have been taking advantage of our Early Bird offering. Our call centre is a hub of activity, our online applications are at risk of breaking the internet and even snail mail applications are steady.

This tells us that snowbirds want to head south, intend to head south and will be heading south.

Even if you didn’t enrol in the Medipac Early Bird Travel Insurance program, all is not lost. Take advantage of higher deductible options to get your premium cost down. Enjoy the benefits of your loyalty credit and claims-free discount to help offset the increase in premium which you may face this year.

The Bank of Canada tells us that inflation in Canada has risen by 23% from 2020 to 2026. Over the last five years, Medipac has made only minor adjustments in the premiums charged for emergency medical insurance. We have implemented only single-digit increases of between one and three per cent for targeted sectors of our program, and we have managed to hold off on any dramatic price adjustments for the benefit of our clients. This has also kept pressure on the industry to keep prices down overall.

Snowbirds have survived the pandemic shutdown of 2020, economic downturns that put their retirement portfolios temporarily at risk in 2008 and low-valued Canadian dollars – remember when it was 62 cents in 2002? And now we must survive a perfect storm that has forced the industry to invoke a correction necessary to remain solvent.

Unfortunately, inflation forces consumers to make tough choices at the grocery store, at the gas pump and everywhere else that purchasing enhances, or detracts from our daily lives. I just hope that it doesn’t interfere with your winter in the sun.