Thursday, 3 November 2022
Australians plan to travel more in the future but after two years of lockdowns there is an atmosphere of caution among many of those intending to travel, according to a new survey released today by the Insurance Council of Australia (ICA) and the Australian Government’s Smartraveller website.
The 2022 joint survey* shows that an alarmingly high number of people hold mistaken beliefs about the support they would receive from the Australian Government if something was to happen to them when overseas.
The survey also shows that a significant number of under-30s are planning to leave Australia without the protections afforded by appropriate travel insurance.
The key takeaways from the survey include:
- Pent-up demand: 70 per cent of all respondents and 78 per cent of under-30s say they are planning to travel more often in future in response to being unable to travel during 2020 and 2021.
- Travellers are cautious: Two thirds (68 per cent) say the pandemic has made them feel less confident to travel overseas and nine in ten (86 per cent) say they’ll be more cautious about travelling to places where it could prove harder to get back to Australia in a crisis.
- Covid cover: 95 per cent say that cancellation cover for claims relating to Covid-19 will be an important consideration when they come to purchase travel insurance.
- Expectations of consular help: More than two thirds (68 per cent) think that if an Australian has a medical emergency overseas, a representative will ensure they get the medical treatment they need. Fifty per cent believe that if an Australian has a medical emergency overseas the Australian Government will arrange and fund repatriation.
- Risky under-30s: 12 per cent of under-30s are ‘active rejectors’ of travel insurance who consciously plan to travel without insurance, in comparison to 3 per cent of those aged over 30. The most common reason given for this is being unsure that travel insurance is needed.
In addition to meeting Covid-related customer expectations, travel insurers are developing a range of additional benefits to further assist customers. These include mobile access to real-time safety alerts based on location and risk and ‘on-the-go’ purchase of cover for some higher risk activities.
Quote attributable to ICA CEO Andrew Hall:
Two years of lockdowns with no international travel means many Australians are planning to head overseas in coming months.
Accidents and emergencies can happen anywhere, meaning travel insurance remains a vital protection.
You couldn’t travel overseas without your passport, and you shouldn’t travel overseas without travel insurance, no matter the destination.
* 2022 Quantum Market Research survey on behalf of Smartraveller.gov.au and ICA, 1,001 Australian, who had either booked or were actively planning an overseas trip in coming months