Travel Insurance Raises the Ceiling

CAA has doubled the emergency medical limit on its travel insurance to $10 million and added an automatic payout for flight delays, just before the winter season. The same week, IMG closed its purchase of adventure insurer World Nomads. Both are reasons to re-read the policies your clients already hold.

What CAA changed

The updates apply to CAA Travel Insurance, a product of Orion Travel Insurance, and were announced on 1 October by CAA Manitoba and CAA South Central Ontario.

Emergency medical. The maximum rises from $5 million to $10 million. CAA says medical costs abroad, from routine treatment to emergency transport and air ambulance, have risen about 14 to 15 per cent a year since 2019. CAA South Central Ontario’s policy wording, dated 1 September 2026, lists the $10 million maximum per insured person. It also caps all emergency medical benefits at $25,000 for anyone without active coverage under a provincial or territorial government health plan.

Flight delays. Eligible trip cancellation policies now include a Flight Delay Benefit. If an insured flight is delayed two hours or more, the traveller automatically receives either a payment or an airport lounge pass, with no expense claim needed. CAA hasn’t published the payout amount or which lounges take part, either in the release or on its travel insurance pages.

Weather and disruption. New wording sets out what is covered if a natural disaster hits the traveller’s accommodation at the destination, or weather damage at home disrupts their travel plans. New Major Travel Disruption coverage applies to eligible flight cancellations and unannounced strikes. In the policy wording, that applies when the disruption makes the traveller miss at least 30 per cent of the trip.

Other additions. Cover now includes stolen or lost travel documents, a stolen car, damage to the traveller’s home or business, and extra room costs if a travel companion goes home early.

“Travel insurance is not only about responding to major emergencies, it can also provide practical support during the more common situations travellers may experience while they are away from home,” Elliott Silverstein, CAA’s director of government relations for insurance, said in the release.

World Nomads changes hands

IMG (International Medical Group), a SiriusPoint company, said on 1 October that it had completed its acquisition of World Nomads, first announced in February. World Nomads has sold insurance since 2002 and says it covers travellers from more than 100 countries and more than 250 adventure sports and activities. SiriusPoint said in February that it was buying World Nomads from Australian insurer nib Group, with a majority stake first and a final closing expected in the second half of 2027.

IMG says its distribution now includes Canada along with the United States, the United Kingdom, the European Union, Australia, New Zealand and Brazil. “Customers and partners will continue to enjoy the products, service, and reliability they know today,” said chief executive Will Nihan. IMG hasn’t announced any changes to products or prices.

If you’re travelling: Before a winter trip, check your policy’s medical limit and make sure your provincial health plan stays active the whole time. If it lapses, CAA’s medical cover drops to $25,000.

For advisors

• Snowbirds first. Review medical limits for long-stay winter clients now, and make sure they know their provincial plan must stay active.
• Get the delay payout in writing. Ask CAA for the Flight Delay Benefit amount and lounge partners before you mention it in a proposal. It applies only to eligible trip cancellation policies.
• Adventure clients. For trekking, diving or multi-sport trips, check the client’s activity is on the plan’s covered list before they book. IMG says World Nomads products are unchanged for now.
• Check which wording applies. Clients who bought cover before the changes may hold an older version. Confirm which wording applies to each existing booking.

Sources

• CAA Manitoba, ‘New CAA Travel Insurance benefits provide travellers with enhanced coverage that better reflects today’s travel reality’, 1 Oct 2026: https://www.newswire.ca/news-releases/new-caa-travel-insurance-benefits-provide-travellers-with-enhanced-coverage-that-better-reflects-today-s-travel-reality-843937555.html
• CAA South Central Ontario version of the same release, 1 Oct 2026: https://www.newswire.ca/news-releases/new-caa-travel-insurance-benefits-provide-travellers-with-enhanced-coverage-that-better-reflects-today-s-travel-reality-830032770.html
• https://www.caasco.com/travelinsurance (CAA South Central Ontario travel insurance page: $10 million medical, $25,000 cap without active GHIP)
• https://www.caasco.com/-/media/caasco/insurance/pdf/travel-insurance-policy.pdf (CAA Travel Insurance policy wording dated 1 Sept 2026)
• https://www.caamanitoba.com/insurance/travel
• https://www.travelweek.ca/news/policies/caa-travel-insurance-adds-extreme-weather-flight-delay-benefits/
• https://www.travelpress.com/caa-travel-insurance-introduces-new-coverage-enhancements/
• IMG, ‘IMG Completes Acquisition of World Nomads, Expanding Global Travel Insurance Distribution’, 1 Oct 2026: https://www.newswire.ca/news-releases/img-completes-acquisition-of-world-nomads-expanding-global-travel-insurance-distribution-868810572.html
• https://www.sec.gov/Archives/edgar/data/1576018/000157601826000012/exhibit991-pressreleasepro.htm (SiriusPoint announcement of the World Nomads deal, 12 Feb 2026)