New Zealand travellers could face significant financial burdens when medical emergencies strike abroad, according to recent findings from Cover-More Travel Insurance.
Cover-More’s latest review of its top travel insurance claims for 2024 revealed that the highest payouts all stemmed from medical emergencies.
The largest single claim, related to treatment in the US, approached $1 million. Other major claims involved incidents in Nepal, Singapore, Canada, Japan, and the UK, each resulting in costs exceeding six figures.
Will Ashcroft, Cover-More New Zealand managing director, said the data shows that while the US remains the most expensive country for medical treatment, other destinations are increasingly contributing to high-cost claims.
“The US continues to dominate as the most expensive destination for medical emergencies, but the appearance of these other destinations underscores the importance of medical cover, regardless of the destination,” he said.
Medical issues accounted for about 40% of all Cover-More claims paid in 2024. Common incidents included cases of pneumonia, fractures, foodborne illnesses, altitude sickness, cellulitis, and serious viral infections. Some claims even arose from relatively minor illnesses like the common cold, which escalated into severe conditions requiring hospitalisation.
Southern Cross Travel Insurance (SCTI) also reported significant claim volumes in 2024, paying out tens of millions of dollars for various travel-related disruptions, including medical incidents, cancellations, and property losses.
Chief executive Jo McCauley said serious medical claims, including surgeries and air ambulance transfers, represented the most challenging cases handled during the year.
“We’ve had so many flus and respiratory illnesses pop up this year, along with multiple trips and falls, but our top claims have been very complex medical claims, which can be distressing and challenging for everyone involved, and very, very costly. There are precious few of us who would be able to afford the care we’ve been able to pay for with customer claims,” she said.
SCTI identified illness, accidents, and unusual events – such as animal-related injuries in parts of Asia – as recurring themes in 2024 claims.
Despite these risks, cost concerns continue to influence travellers’ decisions. According to the Kantar Travel Insurance Market Monitor conducted in late 2023, price remains a leading factor for those opting to travel without insurance.
Ashcroft noted that while the average travel insurance premium in 2024 was $317, the highest medical claim surpassed $900,000.
Brokers are urged to help Kiwis choose the best travel insurance policies that address their specific health needs.
“If medical cover and medical-related costs are a concern, this may mean paying a little more premium for a more comprehensive policy or paying extra to cover their existing medical conditions. When travelling to countries known for their particularly high medical costs, travellers may find that their insurance premiums are higher too, but this is likely to be a logical reflection of the insurance risk,” Ashcroft said.
Meanwhile, SCTI recommended that travellers maintain vigilance, practice good hygiene, and ensure they have appropriate insurance cover for their destinations and planned activities.
