Travel insurance has become a key concern for New Zealanders heading overseas, with a significant rise in demand driven by growing global uncertainties. According to Southern Cross Travel Insurance (SCTI), 78% of New Zealanders now consider travel insurance essential, up from 76% in the previous year.
Rising global tensions, particularly in conflict zones, are fueling the need for added protection, with 73% of respondents reporting a greater sense of insecurity, prompting them to purchase insurance. The figures show regional variations, with 81% of Christchurch residents prioritizing travel insurance, compared to 71% in Auckland.
However, travel insurers typically exclude coverage for destinations experiencing active conflicts. SCTI, for instance, does not offer insurance for travel to countries such as Israel, Syria, Sudan, Iran, and Iraq. In cases where a conflict emerges before a trip, related claims are often not accepted. However, if a traveler is already abroad when the situation escalates, insurance coverage generally remains valid.
Climate change is also emerging as a significant factor influencing travel insurance decisions, with nearly three in four New Zealanders acknowledging the growing importance of insurance due to unpredictable weather events and natural disasters.
For domestic travel, New Zealand’s Accident Compensation Corporation (ACC) and the public health system cover medical costs. However, neither provides compensation for trip cancellations due to illness, injury, or bereavement. In 2024, SCTI reported one of its most expensive domestic claims, amounting to NZ$11,000 for a customer injured while hiking.
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