26th May, 2014

Australian demand for travel insurance continues to grow

Australians love to travel, with an ever increasing number choosing overseas destinations to take a break from everyday life.

According to new research by IBISWorld, the number of international holidays taken by Australians has been growing by 8.8 per cent over the last five years.

As a result, 24 per cent of the adult population have taken an overseas holiday in the last 12 months, according to Roy Morgan research.

This increase has been driven by the high Australian dollar, which has made overseas trips more affordable for potential holiday makers. Cheap airfares, particularly to Asia, have also fed this trend.

Australians are also forecast to be taking longer holidays, increasing the opportunities for things to go wrong overseas.

Growing numbers highlight the need for travel insurance

With more Australians than ever travelling overseas, the potential harm caused by not being insured has also increased.

The same IBISWorld report found that insurance claims have also increased in the last five years. 

Ryan Lin, industry analyst for IBISWorld, stated that "an unusually high incidence of natural disasters around the world has resulted in a rise in the volume and value of insurance claims."

Hazards like floods and earthquakes are a big risk to travellers, along with the perennial threats of food poisoning and diseases.

The Western Australian Department of Health has reported that there were 14 cases of measles in the state in the final quarter of 2013. Despite Australia being measles-free, people travelling to countries like the Philippines have been bringing the illness back with them.

With travel becoming more hazardous, it is more important than ever to have comprehensive travel insurance. Effective cover will give you a level of protection in case of hospital visits, theft, trip cancellation or baggage delays.

Author: Murray Bruce