SCTI paid $27,520 in claims for CrowdStrike failure

Southern Cross Travel Insurance (SCTI) has paid $27,520 in total so far for claims related to the recent CrowdStrike IT outage.

According to Jo McCauley, CEO of SCTI, the average cost of each individual claim was $1,375, with most costs being incurred in New Zealand and the US – not an unusual sum per person.

“What is unusual is the scale and widespread nature of the problem,” she said. “From time to time there will be a disruption in one airport or city; however, this disruption was felt right around the world, and all at once.”

McCauley added: “Understandably, most claims are for changes to journey; however, we also covered a number of claims for lost or damaged bags, and extra days in kennels or catteries for travellers caught up in the disruption.”

She added that another significant issue – particularly for customers in the UK and US at the time – was that a number of them were unable to pay for healthcare. The CrowdStrike failure prevented some hospitals and clinics from processing payments – with some travellers consequently being asked to leave their passports with the healthcare provider as a surety.

“Likewise, some travellers’ payments for emergency accommodation were unable to be processed by credit card or even online banking,” she noted.