It’s been said many times: “If you can’t afford travel insurance, you can’t afford to travel” – but there are still travellers who leave it to chance, and David Wallace of Allianz Partners New Zealand is concerned. Here, the Chief Sales Officer talks about the key considerations that have recently been driving Kiwis to either take out travel insurance or not.
Skipping travel insurance
New research from Allianz Partners NZ has found that 22% of New Zealanders do not intend to purchase travel insurance for their next trip. For 38% of respondents, travel insurance is too expensive, while 16% think the risk of something going wrong is too low.
Speaking to Insurance Business while on holiday himself, Wallace said: “While it’s really positive to see the number of Kiwis who are taking out travel insurance, it’s really concerning that people are still taking risks when it comes to travelling without insurance, whether it’s a short trip (duration) or potentially just hopping the Tasman to Australia. Many of the same risks still apply.
The biggest hurdle, according to Wallace, is affordability.
“The number one reason for not having insurance is still price,” he said. “However, when compared to the cost of airfare, accommodation and everything else you’re doing on your trip, it’s a very small price to pay for the peace of mind of knowing that someone is there to support you if and when something goes wrong.”
Top concerns for travellers
So what could go wrong? According to the survey, conducted by Kantar for the travel insurance and assistance provider, there are concerns that are making New Zealanders anxious, despite travel being a priority for 87% of respondents.
The results, seen by Insurance Business, include the following travel concerns: flight cancellations or delays (44%); missing luggage (34%); getting sick or contracting COVID-19 (31%); personal safety while travelling (26%); and being a victim of pickpocketing or theft (21%).
“I think the interesting thing is how big some of the numbers are around some of the concerns of travellers,” Wallace said. “We’ve had a bit of an influx of COVID recently, so it’s understandable that illness and COVID are still around.
“The big one for me was actually around personal safety and theft/pickpocketing… It’s probably something we don’t talk about a lot when it comes to the risks of travel. We talk about lost luggage and delays, but some of these other concerns are really interesting.
Preparation and prevention
According to Allianz Partners NZ, these concerns have led to a change in travel behaviour – from people arriving a little earlier at the airport to only taking hand luggage to ensure it doesn’t get lost. In terms of protection, 43% of those surveyed said they were more likely to take out travel insurance now than before the pandemic, with 77% planning to take out a policy for their next trip.
“Sadly, everyone knows someone who’s had a bad travel experience,” Wallace, who believes it’s about being prepared and taking precautions, told Insurance Business. He noted that when you look at it from that perspective, the cost of insurance “suddenly seems really minimal” in relation to the protection it provides.
“We have different policies with different levels of cover,” Wallace said. “Generally, the comprehensive policy is the one that’s going to cover all of those concerns in terms of medical access, cancellations, delays, lost luggage and things like that.
“So while there are options available at a lower price, people really want the full coverage. They’ll generally go for the comprehensive cover that gives them that greater peace of mind.”
