TRAVEL INSURANCE AS A TOOL FOR ENSURING THE FINANCIAL SECURITY OF TRAVELING CITIZENS

Abstract

In today's globalization environment, when the volume of domestic and international tourism is rapidly growing, the issue of protecting tourists from unforeseen risks is becoming particularly relevant. The authors of the study aim to better understand the essence of travel insurance, determine its tasks and suggest areas for improvement in order to facilitate safe and comfortable travel. The article emphasizes the relationship and, at the same time, the difference between the concepts of “insurance in tourism” and “travel insurance”. While the former covers a wide range of insurance products aimed at protecting all participants in tourism activities, including travel agencies, operators and other stakeholders, the latter focuses directly on the financial protection of traveling citizens. The authors offer their own definition of travel insurance as a system of financial protection that covers risks related to life, health, property and liability of tourists while traveling. The article particularly emphasizes the tasks of travel insurance, which include guaranteeing reimbursement of expenses in the event of insured events, increasing the level of protection of tourists and ensuring their financial security. The article analyzes two main types of travel insurance: mandatory and voluntary. It is found that mandatory insurance is regulated by law and is aimed at ensuring a minimum level of protection for all tourists, while voluntary travel insurance provides an opportunity to expand the range of services that take into account the individual needs of tourists, such as accident insurance, medical expenses coverage, baggage insurance or third-party liability. The article provides a comparative description of these types of insurance, demonstrating their complementary nature, which allows for a more flexible approach to risk management and an increase in the overall level of financial security of travelers. Considerable attention is paid to improving travel insurance as a tool for ensuring financial security. The presented research results have both theoretical and practical significance, as they allow a better understanding of the essence of travel insurance, its tasks and role in ensuring the financial security of traveling citizens. The proposed areas of improvement will contribute to increasing the effectiveness of insurance products, developing the tourism industry and increasing citizens' trust in travel insurance.