Heightened geopolitical instability in the Middle East is causing major travel disruptions and prompting insurers to reassess coverage terms.
Following recent US military strikes on nuclear sites in Iran, the Australian government has elevated its travel advisory for the region, warning of potential rapid deterioration in local security. Australian consular services in Iran are currently unavailable due to the closure of the embassy in Tehran.
Airlines have responded by rerouting or suspending flights passing over Iran and surrounding areas, including Iraq, Syria, and Israel.
These changes are affecting travel to destinations like Doha and Dubai, with downstream implications for travel insurance coverage and claim eligibility.
Natalie Ball, managing director at CompareTravelInsurance.com.au, said travellers experiencing changes to flight schedules should first consult directly with service providers before turning to insurers.
“Impacted travellers should first seek compensation through their travel providers. If they are not eligible for compensation, their next step should be to contact their travel insurer, confirming exactly what’s covered under their policy, especially where government advisories and known events are concerned,” she said.
Ball also highlighted that insurance coverage may not apply in destinations where Australia’s Department of Foreign Affairs and Trade has issued the highest-level travel warnings.
“Travelling to a destination with a ‘Do Not Travel’ warning could invalidate your travel insurance policy. As well, those who travel against such warnings may face limited or no consular assistance during emergencies, so consider these factors carefully making any travel decisions,” she said.
She urged policyholders to be aware that travel insurance can be rendered void if individuals proceed with travel against government guidance.
“Given the fast-moving nature of this conflict, government warnings to destinations such as Qatar have been raised, which could impact your travel insurance coverage. As advisories are changing regularly, you should speak with your insurer regarding any concerns you may have regarding destination,” Ball said.
The recent eruption of Mt Lewotobi in Indonesia serves as a reminder of the need to plan for natural hazards.
Ball said that insurance purchased before the June 18 eruption may cover related disruptions.
“Unexpected weather events and volcanic eruptions are generally covered by travel insurance, provided you purchased your policy prior to the event. In this case, traveller would be covered had they purchased cover prior to the 18th of June, when widespread reports of the eruption and subsequent flight cancellations emerged,” she said.
She advised travellers not to delay purchasing travel insurance and to be diligent in reviewing what is and isn’t included in their policy.
In a separate development, Australian travellers are being encouraged to review their immunisation history amid a rise in global measles cases. Overseas transmission has been linked to local outbreaks, with 54 cases reported nationally in 2025 – nearly equalling the full-year total for 2024.
Zoom Travel Insurance reported a significant increase in measles cases across the Americas and Europe.
Natasha Sullivan, marketing manager at the insurer, said the data reflects the importance of immunisation for international travel.
“With the sudden outbreak of measles, travellers should ensure they are sufficiently vaccinated, particularly when travelling in parts of the world experiencing high transmission of measles. Unvaccinated travellers are at very high risk of measles exposure and transmission. Additionally, those who fail to vaccinate could face significant medical bills should they fall ill overseas,” she said.
Sullivan said Most travel insurance policies will provide cover for unexpected illnesses like measles. However, once an outbreak is classified as an epidemic or widely known, new policies may not include protection for that condition.
She added that insurance remains useful even under these conditions.
“In the event that a travel warning was released that affected your coverage, it’s worth being mindful that travel insurance is still very useful for a whole range of reasons. For instance, you would still be entitled to claim on luggage, cancellation, and medical expenses unrelated to the travel warning,” Sullivan said.
Recent survey data from Allianz Partners found that more than 80% of Australians intending to travel abroad in 2025 are planning to take out insurance.
Medical risks were the leading concern, followed by financial issues and logistical disruptions.
