Recent research has highlighted that a considerable number of Australians continue to travel internationally without securing travel insurance, prompting Allianz Partners to call for a reassessment of coverage habits.
According to a study commissioned by the Insurance Council of Australia (ICA) and the Department of Foreign Affairs and Trade’s (DFAT) Smartraveller program, 14% of surveyed Australian travellers reported not having insurance on their most recent overseas trip. The proportion was higher among those under 30, where nearly one in four travelled uninsured.
The research, conducted by Quantum Market Research and involving 1,001 respondents, explored the motivations behind the decision to travel without insurance.
Of those who went overseas uninsured, 65% said they had considered purchasing coverage but ultimately decided against it.
The most cited reason was the perception that their destination was safe (31%), followed by concerns about the value of insurance (27%) and a belief in their own ability to manage emergencies (22%).
Damien Arthur, executive head of travel at Allianz Partners Australia, commented on the findings.
“It is concerning that those travellers who might decide against purchasing insurance are doing so because they think a destination is safe, because this doesn’t give consideration to accidents, medical emergencies, and travel interruptions that can be very costly if travelling without insurance,” he said.
The survey identified that certain demographics are more likely to forgo travel insurance. Australians under 30 and those born outside Australia were both found to have a 23% uninsured rate for their last trip.
Individuals travelling to visit friends, relatives, or returning to their country of origin were also more likely to skip insurance, often citing short trip duration or familiarity with the location as justification.
Risk-taking behaviour was also noted, with 45% of respondents indicating a willingness to take risks for unique experiences, such as trying unfamiliar foods or exploring challenging environments.
Media and social platforms were found to influence travel choices, with 36% of respondents reporting that positive depictions of risky destinations affected their decisions.
The survey also addressed the trend of medical tourism, revealing that 46% of respondents had travelled or would consider travelling abroad for medical procedures, most commonly dental care.
Lower costs were the primary motivation, cited by 69% of those open to seeking treatment overseas.
Alcohol consumption during travel was widespread, with 70% of respondents indicating they drank alcohol while overseas.
However, less than half (43%) understood that travel insurance policies can vary significantly in their approach to alcohol-related incidents.
Notably, 39% of all surveyed travellers said they consumed alcohol while uninsured, outside their policy limits, or were unsure of their coverage.
The current international political environment has also played a role in shaping travel behaviour. The survey found that 56% of respondents had avoided certain countries due to political instability, and 53% reported feeling less comfortable about travelling internationally.
Additionally, 41% indicated that global events had made them less likely to travel abroad.
Andrew Hall, CEO of the ICA, addressed the findings: “Understanding your policy and assessing what kinds of activities you plan on undertaking while you’re travelling is the best way to make sure you’re protected.”
Hall further recommended that travellers review policy exclusions and consider additional coverage for specific activities.
“Check Product Disclosure Statements and speak directly to insurers with any questions,” he said.
The practical implications of travel insurance were highlighted by the experience of traveller Melissa Borody (pictured left), who required emergency medical assistance during a family trip to Japan.
“When I suddenly became seriously ill during a family ski trip in Japan, having Allianz there made all the difference as it came out of nowhere. Their team supported my husband and me at every step, explained what was happening, and gave us the confidence that we were being properly looked after,” she said.
Allianz Partners continues to encourage Australians to review their travel insurance needs, noting that unforeseen events can arise even in destinations perceived as low-risk.
The company’s message to the industry and consumers is to ensure adequate protection before travelling internationally.
