Australian insurers are seeing a wave of high-value claims as travellers head abroad during the northern hemisphere’s summer.
1Cover Travel Insurance reported it has paid $4.5 million in claims since early May, when many Australians departed for Europe.
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Several European cases have stood out for their scale, including a $130,579 hospitalisation in Switzerland, a $34,383 heart procedure in Italy, and a $19,600 road crash in Macedonia.
Trip cancellations have also added to the totals, such as an $18,344 claim linked to a cancelled European cruise.
Natalie Ball, chief operating officer at 1Cover, said the season highlights how ordinary incidents can turn into major costs.
“So far, this European summer, some of our most significant claims have involved run of the mill accidents, but also cases of unexpected illness and trip cancellations, which can be just as costly,” she said.
She added that travellers often underestimate how small mishaps escalate.
“All too often travellers underestimate how quickly medical costs can spiral. A simple fall, for instance can lead to significant expenses. As an example, a recent case involving a woman in Malta, slipping and fracturing her shoulder, led to a $13,000 payout,” Ball said.
The insurer also pointed to the US as a source of large losses. Three recent medical emergencies in Hawaii each exceeded $1 million, making them among 1Cover’s biggest cases.
Ball said the combination of Hawaii’s popularity with Australians and the high cost of American healthcare explains the figures.
“What many travellers don’t realise is that, after a traumatic medical event, patients often require extensive hospitalisation but also rehabilitation before they can be cleared to return home. In many cases, a business-class upgrade and a nurse escort are also necessary. Together, these costs can be financially crippling for most Australians and virtually impossible to manage without travel insurance. Travel insurance isn’t just about covering the immediate emergency; it’s about making sure you can get home safely, too,” she said.
Government travel statistics suggest that demand for US trips remains strong.
The Australian Bureau of Statistics reported that May 2025 travel to the US was up 6% from the prior month and 8% higher than May 2024.
1Cover said sales of US-bound policies rose 28% year-on-year in June, with July following the same trend.
Ball said a mix of sport, leisure and cultural connections has kept Americans trips popular.
“Despite reports of changing travel habits, our data shows a steady interest in USA travel. We believe that strong cultural ties to the United States, in addition to popular sporting events and major tourist attractions have led to consistent travel numbers. Additionally, pent-up travel demand, post pandemic, is actually driving up US travel, rather than reducing it,” she said.
Contributing factors include the National Rugby League’s Las Vegas season opener, which drew more than 20,000 Australians, growing interest in American football, and the ongoing appeal of ski resorts such as Aspen and Vail.
Cruises departing from Miami and Los Angeles have also added to demand, particularly for itineraries to the Caribbean, Alaska and the Bahamas.
As more Australians head overseas, legal experts have warned that exclusions in policy wording may limit cover.
Peter Carter of Carter Capner Law said activities such as motorbike riding, jet skiing, or drinking alcohol are sometimes classified as high-risk.
He added that pursuing compensation can be easier if bookings are made through Australian companies rather than smaller operators abroad.
“To receive the compensation needed to cover serious injury and the ongoing expenses, you may have to seek legal compensation upon your return, and you will have better prospects if this involves an Australian company,” he said, as reported by 9News.
1Cover expects elevated claim volumes to continue into 2026 as school holidays, the summer season, and ski trips to Japan add to outbound travel.
Ball said that while holidays are a significant expense on their own, the greater cost can come from unplanned events.
“When it comes to overseas holidays, the greatest cost may not be booking the holiday, but dealing with the unexpected, which is why travel insurance can be the difference between peace of mind and financial ruin,” she said.
