Travel insurance sales in New Zealand higher than pre-pandemic

Sales of travel insurance in New Zealand have increased by 25 per cent in the third quarter of 2022, compared with the same time period of 2019, revealed Allianz Partners.

The company noted the increase in policies this year compared with pre-pandemic: 200 per cent increase for trips to Fiji and an 89 per cent increase for visits to the Cook Islands. However, travel insurance sales for trips to Australia are up only four per cent, despite it being the top travel destination for New Zealand travellers. Allianz said that is showing complacency about travelling ‘across the ditch’.

Another revelation from Allianz Partners is that it has seen a 53 per cent increase in policies sold to 18–30-year-olds, and a 91 per cent increase in policy sales for 31–40-year-olds for the June to September period this year, compared with the same period in 2019.

A survey commissioned by the insurer of 500 adults from New Zealand also showed that 41 per cent of 18–34-year-olds were ‘significantly more likely’ to buy travel insurance for an overseas trip since the pandemic.

Why is there the increase in insurance uptake?

Allianz Partners’ New Zealand Chief Sales Officer David Wallace said that there is now a heightened awareness of the issues that can arise during travel; for example, catching Covid-19 and isolation, or dealing with lost luggage.

Also, the increased cost of travel means that any disruption could have a greater financial impact than before. Therefore, having insurance before a trip is key.

Wallace said: “Many people believe travel insurance looks after you whilst you’re on your trip, but as we’ve seen, many people’s trips have to be delayed because of illness or injury prior to that trip, so it’s important they get their insurance upfront and protect that investment they’re making.”

Insurers in New Zealand, like Southern Cross, are noting a return to ‘business as usual’ travel insurance claims.