COVID still a risk for travellers – Southern Cross

COVID still a risk for travellers – Southern Cross | Insurance Business New Zealand

Travel

COVID still a risk for travellers – Southern Cross

“On average we are paying out claims for cancellation and travel disruption due to COVID to the value of $1,500, which is a sizeable cost”

Travel

By
Kenneth Araullo

COVID is still a big risk for travellers in New Zealand and continues to get in the way of travel plans for those going in and out of the country, according to new research.

In its latest report, Southern Cross Travel Insurance (SCTI) said that the numbers revealed that the virus is still rife when it comes to travel insurance claims. SCTI CEO Jo McCauley (pictured) ensured customers that they are covered if plans do get disrupted.

“Back in 2020, we stepped into action to support Kiwi and Aussie travellers right from the start of the pandemic, including refunding policies worth millions of dollars for those who were faced with borders slamming shut,” McCauley said. “We introduced COVID-19 cover as soon as we were able, delivering a solution that we were confident offered solid, great value cover for Kiwis. COVID continues to be one of the main reasons our customers claim, and it looks like it’s going to affect travellers for some time to come.”

Data for the firm’s international comprehensive policy also lifted the lid on claims numbers, revealing a spike as travellers began to take off around the world once again. McCauley noted that while there has been a slump since December, the pandemic is still responsible for 11% of all claims paid to customers in New Zealand and Australia.

“On average we are paying out claims for cancellation and travel disruption due to COVID to the value of $1,500, which is a sizeable cost,” she said.

SCTI also revealed popular travel destination plans for Kiwis, as well as where these plans were impacted by the pandemic.

“The data indicates just how ready we are to see the world again. For example, travellers from New Zealand were certainly keen to visit family and friends or to holiday in Australia, soaking up the warmth of Queensland and the vibes of Melbourne. But the USA, UK, Fiji, and the Cook Islands have also been key destinations,” she said.

It has only been recently that the US, Japan, and China have opened their borders, and there are other nations that still have restrictions in place. McCauley said that it’s best to check where these places are before booking, paying, and departing.

“We’re encouraged by the leap in policy sales, which reflects the desire of New Zealanders and Australians to travel again. Our own Future of Travel research supports this with 87% of Aussies making plans and 95% of Kiwis wanting to head away in NZ or overseas in the next 12 months. But, we thoroughly recommend taking out travel insurance which will cover you for the unexpected, or COVID. It’s still very much at large and impacting our customers’ plans,” she said.

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