'Golden age' dawns for travel insurance: Allianz Partners

‘Golden age’ dawns for travel insurance: Allianz Partners

4 August 2022

Allianz travel insurance policy purchases have almost doubled each month since January, the insurer says, rebounding as covid-related restrictions gave way to a 34% spike in international departures in June as Australians headed to Europe for the first time in two years.

Specialty niche insurance and assistance business Allianz Partners says 40 countries now require travellers to purchase covid cover, and this has added to increased engagement in the purchase of travel insurance.

The industry has now entered a “golden age” for travel insurers, Allianz Partners says, with cover evolving “from a grudge purchase to the new must-have travel companion”.

“Customers are taking extra time to consider different scenarios – what may be covered and what is not – and are showing a strong appetite to understand the coverage provided if they become sick with covid,” Allianz Partners Chief Market Manager Damien Arthur said. “If covid has proven anything, it is the value of travel insurance when travelling overseas.”

Visiting friends and relatives is a key travel motivation, Mr Arthur says, which is driving longer trip durations. Asia still remains the top destination of choice for Australians, with Europe and the US making up the top three chosen travel spots.

This year’s volume of calls to Allianz, which recently launched a simplified travel insurance policy, is more than twice 2019 levels, padded by inquiries about expired passports, missed flights and items left on aircraft in a constantly changing travel environment.

“After two-years of grounded travel plans, even the most seasoned globetrotters need to brush up their travel skills and some are forgetting the basics of international travel,” Mr Arthur said.