Florida and the United States Face a Travel Insurance Boom as Squaremouth Reports Growing Demand for Cancel for Any Reason Policies

Published on February 28, 2025

As summer 2025 approached, concerns surrounding international travel had begun shaping the decisions of vacationers and business travelers alike. With memories of winter illnesses still fresh and airfare prices continuing to soar, travelers had been looking for ways to mitigate risks and protect their investments.

Squaremouth, the leading U.S. travel insurance comparison platform, had recently conducted a survey of more than 3,500 travelers to identify the key worries shaping summer travel plans. Their findings had underscored growing uncertainty, with concerns about health, trip cancellations, and financial losses dominating traveler sentiment.

For the global travel industry, these concerns had reinforced the importance of reliable insurance coverage, flexible booking policies, and improved emergency response strategies.

Health Risks Abroad: A Top Concern for International Travelers

One of the most significant findings from Squaremouth’s research had been the widespread anxiety over health risks while traveling. Given that the winter flu and norovirus season had been particularly severe, travelers had been worried about falling ill or getting injured during their trips. More than half—52%—of those surveyed had stated that their biggest summer travel concern had been the possibility of needing medical care while abroad.

The concern had been especially valid for travelers heading to destinations where their domestic health insurance did not provide coverage. With international medical expenses often requiring out-of-pocket payments, the fear of unexpected hospital bills had led many to explore travel insurance options that covered emergency medical expenses and medical evacuations.

Tourism analysts had noted that this growing awareness of health-related travel risks had been influencing the way travelers selected their destinations. Locations with strong healthcare infrastructure, easy access to emergency services, and established medical tourism sectors had been expected to attract more visitors in the upcoming season.

The Rising Cost of Travel: A Growing Financial Burden

Beyond health concerns, financial risks had also been weighing heavily on travelers’ minds. Over the past four years, travel costs had seen a steady increase, and 92% of those surveyed had indicated that they expected to spend the same or more on their upcoming summer trips compared to previous years.

With high airline fares, elevated hotel rates, and expensive on-ground expenses, travelers had become increasingly concerned about losing money on a canceled trip. Nearly half—48%—had expressed worry about protecting their financial investment in the event of unforeseen cancellations.

Travel experts had pointed out that with peak-season demand rising, refund policies had become stricter, making it even more important for travelers to secure trip protection. As a result, comprehensive travel insurance policies with trip cancellation benefits had gained traction among those looking to shield themselves from unexpected disruptions.

The Demand for Cancel for Any Reason (CFAR) Insurance Grows

The uncertainty surrounding travel disruptions had not been limited to illness or traditional trip cancellations. Broader concerns—including aviation safety, overcrowding, and geopolitical tensions—had led more travelers to seek flexibility in their bookings.

Squaremouth had reported that the demand for Cancel for Any Reason (CFAR) travel insurance had more than doubled in 2025. The percentage of travelers opting for this additional coverage had jumped from 5.07% to 11.57%, highlighting a growing preference for greater control over travel decisions.

CFAR coverage had been particularly valuable in cases where travelers had wanted to cancel their plans for personal reasons not typically covered by standard insurance policies. Whether due to discomfort with rising travel uncertainties, unexpected work obligations, or simply a change of heart, CFAR coverage had offered partial reimbursement—usually between 50% and 75%—of prepaid, non-refundable trip costs.

What This Means for the Travel Industry

With travelers becoming increasingly risk-conscious, the demand for comprehensive travel insurance and flexible policies had been influencing industry trends in several key ways:

• Tour Operators and Hotels Adapting: Many travel companies had been expected to introduce more flexible cancellation policies to compete with the rising popularity of CFAR insurance.
• Medical Tourism Destinations Gaining Popularity: Countries known for quality healthcare services had been projected to attract more visitors, especially those traveling long-term.
• Airlines Facing More Demands for Refunds and Rebookings: Given that cancellations had been a major concern, airlines had been anticipated to refine their policies on reimbursements and alternative flight options.

Preparing for a More Uncertain Travel Landscape

As travel uncertainties had continued to shape consumer behavior, industry leaders had been advised to anticipate shifts in traveler expectations. Squaremouth’s findings had emphasized that travelers had been prioritizing security, flexibility, and peace of mind more than ever before.

For travel agencies, insurance providers, and destination marketers, the challenge had been to address these evolving concerns while ensuring that global tourism remained resilient in the face of economic and health-related uncertainties.

As summer 2025 approached, travelers had been urged to carefully evaluate their options, consider insurance coverage, and stay informed about destination-specific risks. For the global tourism sector, understanding and adapting to these changing concerns had been critical to fostering trust and ensuring a seamless experience for international visitors.