Medical incidents accounted for more than 40% of travel insurance claims handled by nib Travel in 2024, with the insurer reporting that medical emergencies continue to be a leading driver of costs for both domestic and international policyholders.
According to the travel insurer, which is part of the nib Group, the most expensive individual claim paid last year exceeded $3 million.
Other high-cost claims, many in the six-figure range, were lodged by travellers to the US, Japan, and within Australia. Medical claims made by travellers in Australia alone reached more than $10 million from over 2,200 cases.
Despite fewer claims coming from travellers to the US – 674 in total – the country topped the list for total medical expenses. nib Travel attributed this to the high cost of healthcare in the US, alongside currency exchange factors that inflate costs for Australian travellers.
Dylan Wilkinson, general manager for international and partnerships at nib Travel, said medical events while travelling can be both unpredictable and costly.
“Travelling is often an exciting time for people. For many, their trips go well without interruptions and no need to use their travel insurance at all. But the reality is that medical emergencies can happen unexpectedly, no matter where you are,” he said.
He highlighted a case where an Australian traveller in the US became seriously ill and was hospitalised for several weeks. The patient was treated in intensive care and eventually returned to Australia by air ambulance after being stabilised.
Another example involved a traveller who sustained multiple injuries while diving in Indonesia. His recovery required an extended overseas stay before he could be repatriated.
This warning comes as younger Australians continue to prioritise travel despite rising costs and weakening Australian dollar. According to Zoom Travel Insurance’s latest research, younger travellers are more likely to maintain travel plans despite economic headwinds, with 72% still deeming travel an essential part of their lives.
Wilkinson emphasised that major claims greatly exceed the cost of a policy – something insurers and brokers could share with their clients to remind them of the advantages of having travel insurance.
“Without insurance, these types of unexpected incidents could result in significant out of pocket costs, which can be tough to recover from,” he said. “The cost of a single major claim, like the ones we’ve seen, far exceeds the cost of travel insurance, which is why it’s so important to ensure you’re covered from the outset.”
