The Insurance Council of Australia (ICA) has declared the Middle East conflict a Significant Event, establishing an industry-wide task force, centralised claims data collection, and engagement with the federal government. The declaration is intended to help insurers and policymakers monitor claims trends and operational issues arising from the conflict and associated travel disruption. Under this framework, Australian travel insurers are operating in a coordinated way as the conflict affects flight paths, transit hubs, and travel plans for Australian policyholders. ICA member companies have deployed additional staff and resources to manage affected travel policies, including 24/7 assistance services, help with arranging medical care where required, and a focus on customers currently in or transiting through impacted countries.
Travel insurers have indicated they will extend the coverage date of some policies where customers have been affected by airport or airspace closures. The ICA is encouraging policyholders who have suffered a loss to contact their insurer and lodge a claim, including in situations where they are uncertain about whether the loss will be covered. Exclusions relating to war and conflict remain standard features of travel policies and other insurance products in Australia and overseas. The ICA has stated that losses not arising from war or conflict, including some medical and disruption-related events, continue to be assessed under normal policy terms and conditions. Insurers are reviewing each claim on an individual basis in line with policy wording.
ICA CEO Andrew Hall said the conflict is likely to continue to affect global travel operations. “The conflict in the Middle East will continue to cause significant disruption to the world’s travel network, but insurers’ number one priority for their customers is their safety and security. We encourage those in transit, or with upcoming travel plans, to speak to their insurer if they have suffered a loss and believe they have a claim. Each claim is assessed on its own merit and insurers are armed with information to support those impacted,” Hall said. He also referred policyholders to official travel advice. “Smartraveller remains the source of truth for advice for travellers – whether in the Middle East or in another part of the world impacted by the disruption to airline schedules. We encourage travellers to stay in contact with their airline or travel agent about their transport arrangement, and their insurer should they need assistance,” he said
The insurance sector’s response is occurring alongside changes to Australian government travel advisories and consular arrangements for the region. DFAT’s Smartraveller service now advises Australians not to travel to Bahrain, Israel, Kuwait, Lebanon, Qatar, and the United Arab Emirates, and continues to advise against travel to Iran, Iraq, Palestine, Syria, and Yemen. Australians are advised to reconsider the need to travel to Jordan, Oman, and Saudi Arabia. The advice reflects the potential for military activity, reprisals, and shifts in local security conditions.
Australians already in conflict-affected areas are being advised to prioritise their safety, follow local instructions, monitor developments and, where it is possible and safe, make plans to leave. Many travellers face constraints due to airspace closures around key transit hubs and limits on road or land border crossings. DFAT has activated its 24/7 Crisis Centre and opened a crisis registration portal for Australians in Israel and Iran, covering citizens, permanent residents, and eligible immediate family members. Australians seeking urgent consular assistance are being directed to the government’s 24-hour Consular Emergency Centre on +61 2 6261 3305 from overseas or 1300 555 135 within Australia.
The Middle East conflict is testing how travel policies respond once a widely reported event is underway and official advice has shifted to “do not travel” or “reconsider your need to travel.” Issues for the sector include:
Advisers and intermediaries are likely to receive queries about whether existing policies remain in force when DFAT travel advice changes after purchase, how war and terrorism exclusions apply where there is a mix of civil unrest, cancellations and security incidents, and what options exist for travellers who have not yet departed but whose itineraries involve affected transit points. The ICA’s claims data collection and task force processes may inform future industry guidance and product settings as the event develops. In the interim, the ICA and its members are recommending that affected travellers stay in contact with their insurer and monitor official travel advice, and that they review policy documents to understand how coverage may apply in current conditions.
