Rebuilding trust after the COVID-19 pandemic: questionnaire-based policy recommendations to restore insurance-hospitality relations

The paper studies the perception of business interruption insurance by the hospitality and tourism-related enterprises as a result of the COVID-19 pandemic. Utilizing a mixed-mode questionnaire (N = 255) primarily concentrated on the French hospitality sector (82% of the sample), the research identifies systemic gaps in the interface. The results obtained from respondents reveal that most of the enterprises possessed policies excluding essential risks and reported late payouts as a primary issue of their relationship with insurers. Additionally, the results of the statistical analysis highlighted the insured feeling unprotected against future threats with small enterprises being most vulnerable, and signs of low trust in insurance providers. Based on the results obtained, we developed recommendations for insurance companies to consider while selling business interruption policies to improve trust, including extending indemnity periods and integrating hospitality-specific expertise into insurance training to foster resilient risk management. Additionally, suggestions were also given to the legal environment.