Travel insurance woes rise amongst New Zealanders amidst global tensions

Prompting 73% of individuals to take out insurance.

Travel insurance remains a priority for New Zealanders travelling overseas, with 78% considering it essential, up from 76% the previous year, according to Southern Cross Travel Insurance.

Growing concerns over global conflict are influencing purchasing decisions, with 73% of respondents feeling less secure and more inclined to take out insurance. 

Regional differences exist, with 81% of Christchurch residents agreeing compared to 71% in Auckland.

Travel insurers generally exclude coverage for destinations experiencing conflict. SCTI currently does not provide cover for travel to Israel, Syria, Sudan, Iran, and Iraq. 

If a conflict is widely reported before a trip, related claims are unlikely to be accepted.

However, if a destination unexpectedly becomes involved in conflict after a traveller has departed, coverage is typically available.

Climate change is also a growing concern for travellers, with nearly three in four New Zealanders recognising the increased importance of travel insurance due to unpredictable weather patterns and natural disasters.

For domestic travel, medical costs are covered by ACC or the public health system, but neither provides compensation for cancelled trips due to illness, injury, or bereavement.

One of SCTI’s most expensive domestic claims in 2024 totalled NZ$11,000 for a customer injured whilst hiking.