NZ insurer reveals impact of CrowdStrike outage
NZ insurer reveals impact of CrowdStrike outage | Insurance Business New Zealand
Insurance News
NZ insurer reveals impact of CrowdStrike outage
The insurer has processed over $153,000 worth of claims to date following the outage
Insurance News
By
Jonalyn Cueto
The recent CrowdStrike IT outage left travelers around the world scrambling to rebook and restart their travel plans. Southern Cross Travel Insurance (SCTI) is one of the insurers that were able to respond to the crisis.
According to a news release, to date, SCTI has processed $153,000 worth of claims related to the outage. With the results of the disruption, SCTI highlighted the importance of purchasing comprehensive travel insurance.
“It’s at times like these when travelers truly realise the benefit of having a comprehensive insurance policy,” said Jo McCauley, CEO of SCTI.
Support during crisis
As news of the CrowdStrike issue broke, SCTI said it assembled a team to address the situation’s impact on their business and support their customers. SCTI reported their systems were left unaffected. However, an estimated 23,000 New Zealand travelers were moving around the world during the 10-day period following the outage. SCTI noted they had to increase their on-call service and claims teams and communicated how they would support travelers with policy coverage.
“The majority of claims were made for costs incurred in Australia and the USA. Most claims have averaged around NZD1,790, which is not unusual. What is unusual is the scale and widespread nature of the problem,” McCauley said. “From time to time there will be a disruption in one airport or city, however this disruption was felt right around the world, and all at once.”
Addressing unusual scenarios
The outage also caused some unexpected scenarios. McCauley highlighted how some travelers were unable to pay for healthcare in the UK and USA because medical clinics and hospitals could not process payments. In some cases, travelers were asked to leave their passports as surety, which can be unsettling.
“If you need to seek medical care overseas, first, if you are able, make sure you, or a support person, contact the SCTI Emergency Assistance team,” McCauley said. “They can then reassure the healthcare provider that the bill will be settled, potentially removing the need to leave a precious passport with someone you just don’t know.”
Similarly, some travelers could not process payments for emergency accommodation via credit card or online banking. In these instances, SCTI recommends contacting them for advice and assurance to the accommodation provider that costs will be covered up to the traveller’s benefit limits.
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