LV has announced it is pausing sales to new customers, while other providers are adding restrictions

The UK insurance giant LV has stopped selling travel insurance policies to new customers with immediate effect as a result of the coronavirus outbreak.

In a statement on its website it said: “In light of the impact that coronavirus (Covid-19) is having globally, we’ve made the difficult decision to pause the sale of travel insurance to new customers.

“We considered a number of different options, such as excluding cover or significantly increasing prices for new customers. We strongly believe this temporary measure of pausing the sale of new policies and focusing on our existing customers is the right decision.” Existing LV customers are not affected.

The move by one of the UK’s biggest insurers underlines unprecedented turmoil in the industry caused by the spiralling cost of dealing with travel problems caused by the outbreak. Other major insurers are taking steps to limit the cover they sell to new customers, as global airlines are cancelling thousands of flights.

The number of people buying travel insurance rose sharply last month, despite the fact that most policies won’t pay out if people cancel due to concerns around coronavirus.

In a separate statement Aviva said: “Insurance is designed to provide cover for unforeseen and unexpected events and is priced on this basis. The outbreak of the coronavirus means there is an increased likelihood of disruption to people’s travel plans.”

Gareth Shaw, head of money at consumer group Which?, said: “It’s very alarming that LV have withdrawn the sale of travel insurance and that other providers have also started restricting the policies they offer customers.



“Anyone planning a holiday should get insurance as soon as they book. If you haven’t already booked insurance and are travelling soon we urge you to get cover immediately from a reputable insurer.



“The government, insurers and the travel industry must immediately tackle the huge challenge provided by coronavirus, as the industry depends on people having the confidence that they can travel with the knowledge they will be covered.”