Air Canada’s flight attendants are now voting on a tentative agreement that promises higher pay and improved working conditions, with results due on September 6. The company has confirmed that even if the deal is rejected, wage disputes will go to mediation and arbitration – meaning no strike or lockout will occur.
But the turbulence of the past few weeks has already underscored how disruptive labour disputes can be for travellers. Thousands of Canadians were stranded when Air Canada flights were cancelled earlier this month, and for many, the ordeal became an expensive reminder of why travel insurance matters.
For insurers and brokers, these moments act as teachable events, driving increased demand and higher consumer awareness around the value of travel coverage – particularly benefits that extend beyond medical emergencies.
“It’s that phenomenon of you don’t know you need something until you know you need it,” said Dan Keon, vice president of marketing and insights at Allianz Global Assistance.
“We saw this with COVID as an example. The customer sentiment around awareness of travel insurance and the importance of travel insurance was never higher than it was after COVID.”
Keon said that, just as the pandemic reshaped how Canadians viewed travel coverage, widespread airline strikes are sparking similar shifts in consumer behavior.
“Events like these especially raise awareness for benefits like trip cancellation, trip interruption and trip delay. It takes an event like this, where not only are travellers financially impacted but their travel is really disrupted, to appreciate that having that extra protection can really make a difference,” he said.
For many Canadians, the starting point in purchasing travel insurance is protecting against medical emergencies abroad. That remains a core driver of demand. But experts say a significant portion of the travelling public still underestimates the financial risks tied to cancellations and disruptions.
“There’s still a segment of the population that believes they don’t need travel insurance,” Keon said. “It takes an event like this to show why those benefits matter.”
Airline strikes can have ripple effects that go far beyond a single flight. A missed departure might mean forfeiting prepaid accommodations, excursions, or connecting flights. Without proper coverage, travellers are left to absorb those costs themselves.
Travel insurance can be a lifeline when strikes force last-minute changes. But coverage is not always straightforward, cautioned Anna Leone, private client services national product development leader at Marsh McLennan Agency.
“Families whose trips are completely stopped or cancelled due to an airline strike could potentially benefit from reimbursement for prepaid, nonrefundable trip costs under their travel insurance policies,” Leone said.
At the same time, travellers should not assume all policies treat strikes equally. “Each insurance company might have a slight difference in how they define what is considered a covered strike,” she explained. “Some may have broader definitions while others may specify that the strike needs to be organized by labour unions.”
The fine print matters, and so does timing. Travellers should submit the insurance claim as soon as possible if the strike is impacting them, Leone added.
“Timely notification of the claim to the insurance company is often a requirement written into the insurance policy.”
For consumers overwhelmed by exclusions, conditions, and definitions, brokers play a critical role in cutting through the complexity. Leone said this is where brokers demonstrate their value: by ensuring clients understand what coverage they are buying and how it applies to their specific travel plans.
“Working with an insurance broker helps travellers understand the different insurance options available to them,” she said. Brokers, she added, can demystify the process and ensure the client has peace of mind that they are covered when travelling.
This role becomes particularly important during times of heightened disruption. Strikes, labour shortages, and operational breakdowns are becoming recurring themes in global aviation, and each incident offers brokers a chance to engage in client education and emphasize the importance of comprehensive coverage.
Insurance isn’t just about reimbursement. Increasingly, travellers are relying on insurers’ assistance services to help them navigate the chaos of disrupted itineraries.
“Travel assistance is an automatic feature available on several travel insurance policies and provides around-the-clock assistance to clients for situations involving travel interruptions, rebooking, and travel information,” Leone said.
These services can make the difference between scrambling for flights in an unfamiliar airport and having dedicated coordinators secure alternative arrangements. Several insurers now also provide mobile apps that connect travellers directly to assistance teams worldwide, making it easier to rebook and adjust plans on the go.
