Ontario Blue Cross Launches Rainy Day Coverage That Pays Travellers When It Rains

Ontario residents heading to sun destinations may soon have a new way to soften the disappointment of a rainy vacation.

Ontario Blue Cross has launched Rainy Day coverage, which it says is the first weather-based travel insurance product of its kind in Canada. The new optional coverage provides compensation when rain significantly disrupts a trip, using automated weather monitoring rather than the traditional claims process.

The insurer said the product is designed to address a gap in the travel insurance market. While conventional travel insurance policies typically cover unexpected medical emergencies, trip cancellations or interruptions, there has been no insurance product aimed specifically at compensating travellers for poor weather during their vacation.

"We're turning a common travel frustration into a tangible benefit for travellers," said Anne-Gaëlle Le Hénaff, Vice-President, Commercialization, Ontario Blue Cross.

The coverage operates using what is known as parametric insurance. Rather than requiring travellers to document losses or submit claims, an algorithm monitors weather conditions at the insured destination throughout the trip.

If rainfall exceeds the threshold outlined in the policy and all coverage conditions are met, travellers are automatically notified and invited to receive compensation.

Under the program, travellers can receive $100 per covered rainy day, per contract. No proof of loss is required, and there are no claims forms to complete. Payments are issued by Interac e-Transfer within two business days, according to the company.

Ontario Blue Cross said the goal is to provide travellers with additional flexibility when weather affects vacation plans, allowing them to use the compensation to adapt their activities or offset costs associated with unexpected rain.

Rainy Day coverage is available as an add-on to emergency medical, trip cancellation and interruption, and 3-in-1 travel insurance packages.

The coverage is currently offered for trips to Mexico, Cuba, the Dominican Republic, the United States, Canada and Europe. Policies must be purchased at least 14 days before departure.

The launch comes as travel insurers continue to explore new uses for data-driven and automated insurance products, including coverage that can provide payments based on predefined events rather than traditional claims assessments.

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