Spike in high-cost Australian claims fuelled by northern hemisphere travel

Australians chasing summer sun in the Northern Hemisphere have driven a surge in high-value travel insurance claims, with Australian insurer 1Cover revealing it has paid out $4.5 million since 1 May. Some of the costliest incidents occurred in popular European destinations, including an AU$130,579 hospital stay in Switzerland, a $34,383 cardiac procedure in Italy, and a $19,600 road accident in Macedonia.

Trip disruptions also proved expensive, such as a cancelled European cruise that resulted in an $18,344 claim. 1Cover COO Natalie Ball commented: “So far, this European summer, some of our most significant claims have involved run of the mill accidents, but also cases of unexpected illness and trip cancellations, which can be just as costly.” She noted that even minor mishaps can escalate quickly.

Claims from US destinations, particularly Hawaii, are also on the rise. Ball said, “Three of 1Cover’s highest recent cases, each totalling $1 million or more, have all come from Hawaii, with all three involving serious medical emergencies. This rise reflects both the state’s popularity with Australian travellers and the extraordinarily high cost of medical care in the US.” She noted these cases often include extended hospitalisation, rehabilitation, and medical escorts home – costs that are difficult to manage without insurance.

Looking ahead, 1Cover expects high claims to continue through 2025 into early 2026, driven by upcoming school holidays, summer travel, and ski trips in destinations such as Japan. Ball stressed the importance of travel insurance, saying, “When it comes to overseas holidays, the greatest cost may not be booking the holiday, but dealing with the unexpected.”

Earlier this month, the Association of British Insurers (ABI) revealed that its members paid out £472 million across more than 500,000 travel insurance claims in 2024.