Australia's major banks have quietly wound back one of the most relied-upon forms of travel protection – and the gap is landing squarely in broker territory.
NAB moved first. From May 15, 2026, it removed international and domestic travel insurance and rental vehicle excess cover from six cards: the Rewards Platinum, flybuys Rewards, Low Rate Platinum, Velocity Rewards Premium, Premium Credit Card, and Low Fee Platinum.
Other NAB cards had their international cover period shortened. The changes applied to claimable events from that date – meaning cardholders who had already booked travel were not necessarily protected under the old terms.
Westpac followed on October 1, stripping trip cancellation, travel delay, and luggage cover from its international travel policy across affected cards. The international excess also rose from $300 to $500. Cover that previously activated automatically – provided $500 in travel costs was charged to the card – now requires manual activation through the Westpac app or online banking.
ANZ raised the excess on eligible international travel insurance claims from $350 to $500, with further changes scheduled to take effect from December 2026 and March 2027 depending on the card. CommBank restructured its credit card and rewards offering from October 1.
The changes come as the Reserve Bank of Australia (RBA) implements a major overhaul of card-payment regulation. From October 1, 2026, the RBA cut the interchange fee cap on domestic consumer credit card transactions from 0.80% to 0.30% – a reduction of more than 60%, according to the RBA’s own regulatory framework documentation. Interchange revenue has historically funded credit card benefits. Westpac has noted its insurance changes are not directly attributed to the RBA reforms, though the broader revenue environment for card issuers has shifted regardless.
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Judith Gamble, travel insurance manager at RACV Travel Insurance, said many cardholders will not discover the changes until something has already gone wrong.
“Several major banks have already reduced or removed complimentary travel insurance benefits, with more changes taking effect this week. Travellers shouldn’t assume the cover they’ve relied on previously is still in place. Many people only discover their cover has changed after something goes wrong overseas, leaving them unexpectedly exposed to costs and disruptions,” she said, as reported by Nine.
RACV Travel Insurance recorded more than 4,000 claims in FY26. Overseas medical incidents were the most common claim category at 37%, followed by cancellation fees and lost deposits at 27%, lost and damaged luggage at 21%, emergency expenses at 18%, and travel delays at 5%.
Those are not small-ticket items. A client who assumed their Westpac card still covered trip cancellation – and it no longer does – faces those costs uninsured.
There is another wrinkle worth raising with clients before they travel, not after. According to the Australian Financial Complaints Authority’s (AFCA) published FAQ guidance, complaints about complimentary travel insurance provided through a credit card must generally be lodged against the underwriter – not the card-issuing bank. That is because the underwriter, not the bank, issues the insurance policy.
For clients used to dealing with their bank on card matters, that distinction adds friction at exactly the wrong moment. Brokers who brief clients on this upfront remove one more obstacle in a claims scenario.
Even where complimentary cover still exists on a card, it is not always automatic. Depending on the card and insurer, cardholders may need to spend a minimum amount of the trip cost on the eligible card, manually activate cover before departure through an app or phone call, and meet additional eligibility criteria. Points-only bookings may not qualify, and benefits can vary by card tier.
Natalie Smith, marketing director at Comparetravelinsurance.com.au, flagged manual activation as the area where clients are most likely to be caught out.
“Complimentary doesn't necessarily mean automatic. Travellers need to know exactly what they need to do to activate their cover and make sure they’ve met those conditions. While cover may previously have been activated automatically, some providers now require travellers to manually activate their cover,” Smith told Nine.
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Credit card travel insurance has historically provided a form of passive competition – cover clients received without seeking advice or buying a dedicated policy. That has changed, and the change is not well understood by most cardholders.
The 2024 Insurance Council of Australia (ICA) and Department of Foreign Affairs and Trade (DFAT) travel insurance survey of 1,007 Australian overseas travellers found that 25% of insured travellers cited a credit card or employer arrangement as their reason for having cover on their most recent overseas trip. That is a substantial cohort now carrying terms that have been amended, in some cases substantially, without their awareness.
The National Insurance Brokers Association’s (NIBA) February 2026 report, Complexity to Clarity: The Broker Advantage, found that 95% of clients view brokers as critical to claims resolution, and 98% of broker-supported claims are successfully resolved. A product category where the complaints pathway is less intuitive than clients expect is exactly where that capability matters.
The most immediate task is identifying which clients might be affected – frequent travellers, corporate travel accounts, and holders of premium cards from the four major banks – and checking in before their next departure, not after.
