The pandemic is no longer the defining risk in the minds of New Zealand travellers. According to June 2026 research by 1Cover Travel Insurance, four concerns now sit well above COVID-related expenses in the traveller worry rankings: flight cancellations at 88%, lost or stolen property and medical emergencies both at 85%, and geopolitical tensions at 84%, compared to 67% for COVID-related expenses – a redistribution of risk perception with measurable implications for product demand across the travel insurance market.
The shift in risk perception is occurring against a backdrop of record travel activity. Statistics New Zealand data, cited in the 1Cover report, shows that January 2026 recorded the highest volume of overseas departures by New Zealanders on record. International travel intentions have climbed from 49% in 2024 to 53% in 2026, while the share of respondents planning domestic travel fell from 73% to 69% over the same period – a pattern that suggests international travel has become a greater financial commitment for many households, with corresponding implications for the value of trips being put at risk without cover.
The 1Cover research found that few respondents indicated they would stop traveling altogether because of financial pressure, with most opting to adjust their travel styles or budgets rather than cancel plans. Natalie Ball, director of 1Cover Travel Insurance, noted the range of variables now shaping those decisions. “Travel remains a priority for many New Zealanders. But the factors influencing travel decisions today are vastly different from those of just a few years ago. From geopolitical tensions and extreme weather events to ongoing economic uncertainty, travellers are navigating a more complex landscape. Understanding your cover and knowing where to turn for support can make all the difference,” Ball said.
Among respondents who consider travel insurance, the 1Cover research found that medical expense coverage, around-the-clock emergency assistance, repatriation benefits, protection for lost or stolen belongings, and coverage for trip disruptions ranked as the most essential features. These preferences map unevenly onto what the market currently delivers. The MoneyHub analysis found that medical expense coverage ranges from capped limits at some insurers to unlimited cover at others, and that luggage protection varies from $10,000 to $25,000 across policies – a gap that matters when the features travellers rank as essential are not consistently available at the price points many are paying.
Moving from what travellers want to whether the market delivers it, the MoneyHub analysis found that cancellation and disruption terms vary widely across policies, that credit card travel insurance carries significant restrictions around activation, trip duration, and pre-existing conditions, and that the price difference between entry-level and comprehensive cover is often less than $20. These details suggest the alignment gap, where it exists, may be as much a matter of product complexity and consumer comprehension as it is of product availability.
“What we’re seeing is that travellers are increasingly focused on practical protection and support when they’re away from home. Medical expenses remain front of mind, but travellers also want confidence that if their plans change unexpectedly, or something goes wrong, they have somewhere to turn. Ultimately, people want to feel prepared so they can focus on enjoying their holiday rather than worrying about what might go wrong,” Ball said.
Flight cancellations topped the 1Cover concern rankings at 88%, followed by lost or stolen property and medical emergencies at 85% each, and geopolitical tensions at 84%. These figures point to high-volume product lines – flight cancellation, lost property, and medical claims – where demand for cover is being expressed clearly by the traveling population. Yet a May 2026 survey of more than 1,200 adults by AA Travel Insurance found that 61% of respondents considered it unlikely or impossible that they would need medical treatment overseas – a tension between stated concern and actual risk perception that may help explain why coverage rates remain low despite record travel activity.
The financial exposure created by that gap is significant. The AA Travel Insurance survey found that 22% of respondents had no clear plan for funding medical treatment if an emergency arose abroad, just 48% purchase travel insurance on every overseas trip, and 21% rarely or never arrange cover when traveling internationally. Prior to the recent conflict in the Middle East, 55% of respondents had travelled overseas in the previous 12 months, with Australia (46%), Asia (26%), the UK and Europe (17%), the Pacific Islands (13%), and the US and Canada (11%) as the most common destinations. Given the coverage rates in the same survey, a considerable share of those trips are unlikely to have been insured.
In high-cost medical markets such as the US, a single fracture can exceed $100,000 in treatment costs, according to the March 2026 MoneyHub analysis, which drew on more than 500 quotes from over 10 insurers across 20 international destinations and found that one in three New Zealanders travel overseas without any travel insurance. The MoneyHub analysis noted that only four underwriters back every travel insurance brand operating in New Zealand. For brokers and advisers, that concentration means that regardless of which brand a client purchases, the same small group of underwriters is ultimately responsible for assessing and paying claims – a factor with practical implications for how travel products are compared and recommended at the point of sale. For travellers aged 65 and over, premiums rise considerably, and some insurers decline to offer cover to this demographic at all. Across all three sources, the data points to a market where the consumer education problem appears to sit as much at the point of sale as it does with travellers themselves – a challenge that falls directly on the insurers and distributors responsible for translating traveller risk awareness into adequate coverage at the time of purchase.
