SCTI data: Domestic travel claims cost more than international ones

SCTI data: Domestic travel claims cost more than international ones | Insurance Business Australia

Insurance News

SCTI data: Domestic travel claims cost more than international ones

Research shows 58% of interstate travellers encounter issues

Insurance News

By
Roxanne Libatique

As summer continues, Southern Cross Travel Insurance (SCTI) has advised Australians to prioritise their peace of mind and financial well-being by securing domestic travel insurance for their holiday trips within the country.

The insurer has released research that supports this advice: During the last two summer holiday periods SCTI disbursed an average of $1,328 per claim to Australians traveling domestically, surpassing the average international claim cost of $1,272 during the same period.

“Many Aussies believe they don’t need insurance when travelling domestically as they would be covered for medical situations under Medicare,” said SCTI CEO Jo McCauley (pictured above) in a media release. “However, the data from the past two summers reinforces the value of travel insurance in safeguarding our customers against the uncertainties of travel.”

According to the insurer, the most common claims paid out were related to unexpected changes in travel plans and issues with misplaced or delayed property and baggage.

Value of travel insurance

According to SCTI’s Future of Travel 2023 research, 58% of Australians who travelled interstate in 2022 reported issues with their travel or travel plans. The most common issues were airline-related, including lost luggage, flight delays, or cancellations (36%).

In the release, McCauley emphasised the importance of ensuring adequate coverage for domestic holiday travels and being prepared for unforeseen circumstances.

“Due to the high costs of domestic flights and accommodation in Australia, we saw the average cost of domestic claims exceed the average claims cost for international trips over the last two summers, she said. “With the cost to travel not showing any signs of reducing, it’s just not worth taking the risk and travelling without insurance either domestically or internationally.”

Aussies on cruises

SCTI has also introduced optional cruise cover as an “add-on” for domestic travellers in September after finding that 23% of Australians plan to go on a domestic cruise in the next 12 months. Since the availability of domestic cruise cover, approximately 11% of customers have chosen this add-on in October and November.