Insurers are refusing to renew repatriation cover for policyholders with employees in political trouble spots.
According to a report in The Times, insurers have been suffering huge losses on emergency repatriation cover, following a flood of travel warnings from the Foreign and Commonwealth Office (FCO) since September 11.
The cover is triggered if the FCO issues a warning against travel to a region.
Underwriters are now refusing to renew the cover in an effort to stem the losses.
One Lloyd's insurer is believed to have already paid out £1.9m since September 2001.
Marsh senior vice-president Andrew Edwards said that underwriters are becoming increasingly selective about which countries they will cover, and are looking to decrease their exposure even in supposedly trouble-free countries.
