My travel insurance was due to auto renew last year, and COVID was specifically excluded from the coverage in the new policy. As this was no good to me and I wasn't travelling anyway, I let it lapse and have saved 18 months of premiums so far. With borders gradually opening up, I'll be looking for another policy soon but might start off with single trip rather than annual until things settle down a bit. Some countries want a policy specifically for COVID and a general one might not meet the local requirements.
I go SCUBA diving and have a special policy for this activity as it normally comes under general exclusions in normal travel insurance. It's not worth trying to get it added onto a normal policy and I find a specialised insurer to be much better.
COVID is serious for unvaccinated senior citizens with underlying health conditions, but these people have expensive premiums and don't travel very much anyway. For fully vaccinated under 60s in normal health, the extra cost should be minimal. No doubt the insurers have their actuaries crunching numbers as we speak and suitable policies with terms and conditions will be available soon.