A new agreement between France and New Caledonia has granted the Pacific territory increased autonomy, a move intended to address ongoing political issues and promote stability.
Following this development, both Australia and New Zealand have revised their travel advisories for New Caledonia.
On June 27, Australia’s Department of Foreign Affairs and Trade (DFAT) lowered its travel advice for the region from level 3 (“Reconsider your need to travel”) to level 2 (“Exercise a high degree of caution”). This adjustment applies to all areas of New Caledonia, including the Loyalty Islands, Isle of Pines, and the interior of Grand Terre.
New Zealand made a similar change in May, citing improved conditions.
The previous level 3 warning was issued in response to civil unrest that began in May 2024. While the situation has improved, the events of the past year continue to influence traveller sentiment and insurance activity.
Travel insurance providers have reported a marked reduction in demand for New Caledonia policies in the months following the unrest.
Data from Zoom Travel Insurance showed a 60% decrease in policy sales during the December-January period, which is typically the busiest season for travel to the territory.
Zoom’s marketing manager, Natasha Sullivan, noted that the recent downgrade in DFAT’s travel warning means insurers can now offer coverage for trips to New Caledonia.
“With DFAT lowering its travel warning to Level 2 to the entirety of New Caledonia, travel insurers will now cover New Caledonia, subject to the terms and conditions of your policy,” she said.
She added that travellers should remain informed by checking Smartraveller updates, avoid large gatherings, and review their insurance policy details before departure.
Travel to New Caledonia is anticipated to recover gradually, according to Zoom. Prior to the 2024 unrest, the destination experienced a significant post-pandemic increase in Australian visitors.
New Caledonia remains a key market for both leisure travellers and cruise passengers from Australia.
Cruise operations resumed in late 2024, and the updated travel advisories are expected to support further growth in this segment.
Sullivan advised travellers to confirm their insurance coverage and purchase comprehensive policies ahead of their trips.
Recent data from Southern Cross Travel Insurance (SCTI) highlights notable differences in cruise-related insurance claims across Australian states.
Between May 2024 and April 2025, Tasmanian policyholders submitted claims at a higher rate than those in other states, accounting for 16% of cruise claims relative to policies sold. Victoria and Queensland followed with 11.2% and 10.1%, respectively.
Other states, including Western Australia, South Australia, and New South Wales, also saw significant claim activity, while the ACT and Northern Territory reported lower rates.
SCTI also found that Australians are more likely to make cruise-related claims than New Zealanders, which may reflect differences in travel habits or medical needs.
Rising living expenses are influencing how Australians approach travel and insurance. According to the Allianz Partners Travel Index, 71% of adults in Australia plan to travel in the next year, but affordability remains a barrier for many. Insurance considerations are a key part of travel planning, particularly among younger travellers.
Survey results from Zoom Travel Insurance indicated that 72% of Australians aged 18 to 34 consider travel essential, despite economic challenges. Spending intentions also affect insurance purchasing, with most travellers planning to spend between $5,000 and $10,000 per trip.
