Cover-More and Aon have entered a new travel insurance partnership in Australia, linking a major travel insurer with a global brokerage giant's local client and employee base. The agreement establishes Cover-More, part of Zurich’s Cover-More Group, as the provider of travel insurance products to Aon’s Australian retail customers and to the firm’s workforce. Under the arrangement, Aon will distribute Cover-More’s travel cover through its Australian retail channels and internal programs.
Mike Stein, executive general manager, sales and distribution at Cover-More, described the deal as building on the company’s existing corporate and brand relationships. “Cover-More continues to work with some of Australia’s best -known brands and we are recognised for our market-leading products, strong operational delivery, and exceptional customer care. We look forward to expanding this opportunity with Aon, a firm that has continued to demonstrate an award-winning capability to deliver meaningful outcomes for their clients,” Stein said.
For Aon, the partnership is aimed at expanding its travel risk and employee benefits offering in Australia. Kevan Johnston, CEO of Australia for Aon, said the goal is to support both external clients and employees with a consistent travel cover solution. “We are thrilled to start a strategic relationship with Cover-More in Australia and to embark on a partnership with a company that shares our values and our commitment to protect the lives of people around the world, and a company that continues to deliver for their partners,” Johnston said. The arrangement illustrates how intermediaries are working with travel specialists as travel patterns, risk perceptions, and digital service use change.
The Cover-More-Aon agreement coincides with new research showing that Australian travel activity remains high, maintaining demand for travel insurance. Southern Cross Travel Insurance’s latest Future of Travel report, based on a survey of 1,008 adults conducted in November 2025, indicates that 92% of Australians travelled in 2025, whether within their state, to other states, or overseas. About 45% of respondents took an international trip, up five percentage points on the prior year. Domestic travel also remained common: 75% of people took at least one intrastate trip and 58% travelled interstate, broadly in line with 2024 levels.
Looking to the next 12 months, 86% of Australians intend to travel in 2026. Planned intrastate travel stands at 73%, interstate at 65%, and overseas at 51%. Survey responses suggest that while some travellers may reduce the number of domestic trips, overall intent to travel remains high, supporting ongoing volumes for airlines, tour operators, and travel insurers. Destination preferences continue to evolve. Japan is the most frequently nominated international destination, with 31% of respondents hoping to visit, followed by Europe (27%) and New Zealand (22%). Political and security issues are influencing choices: 42% of travellers say such factors have altered their plans, and 74% report being less likely to visit the US.
The report indicates that inflation and household budgets are affecting how Australians plan their holidays, while not preventing most from travelling. Among those preparing for an overseas trip, 62% say the cost of living has affected their plans. Half of all respondents aim to avoid high-season travel to manage expenses, 31% look to low-cost airlines or cheaper airfares, and 28% plan to spend less on dining or entertainment at their destination.
At the same time, respondents identify particular areas where they are prepared to spend more. When people choose to increase their travel spend, 31% say they would extend their trip or add another destination, and 31% nominate shopping. About 29% would direct extra budget toward higher-end accommodation or distinctive experiences. These patterns point to demand for cover alongside close attention to price, optional benefits, and scope of protection, especially where policies intersect with pre-paid travel, experiences, and higher-value purchases.
The Future of Travel findings suggest that more Australians are prioritising travel insurance, particularly for international journeys, while a minority continues to travel uninsured. According to the report, 88% of Australians now regard travel insurance as a priority for overseas trips, up from 79% in November 2024. For domestic travel, 44% see insurance as a high priority, compared with 41% a year earlier. However, about 13.6% of Australians who travelled overseas in 2025 did so without cover. The share is higher among younger adults: around 19% of travellers aged 18 to 29 went abroad uninsured. This group represents a segment with lower insurance uptake and scope for further education on protection needs.
Risk perception is being shaped by external events as well as traditional medical and cancellation concerns. Extreme weather events are cited by 73% of respondents as a key reason for purchasing travel insurance, while 71% point to natural disasters. Concerns about conflict or war (68%) and political conditions at the destination (63%) also rank prominently. “Peace of mind” is mentioned by 70% of respondents as a core reason for buying cover, slightly above medical protection at 69%. The findings reinforce the need for clear policy wording and assistance features that address a wide range of disruption scenarios, not only illness or injury. Within this environment, the Cover-More and Aon partnership adds another example of large-scale collaboration between insurers and intermediaries as they adjust their travel insurance distribution strategies.
