SCTI reports surge in Australian travel insurance bookings for Europe
SCTI reports surge in Australian travel insurance bookings for Europe | Insurance Business Australia
Travel
SCTI reports surge in Australian travel insurance bookings for Europe
Most common and costliest claims outlined
Travel
By
Roxanne Libatique
With the UEFA Euro 2024 football championships in Germany and the Paris Olympics approaching, Australian travel to Europe is set to surge this year.
Southern Cross Travel Insurance (SCTI) has observed a steady increase in travel insurance bookings to Europe since March. Policies sold during the week starting May 13, 2024, rose by over 150% compared to the week of March 4, making up nearly 40% of the insurer’s total policies sold in April and May.
Most popular European destinations among Australians
According to SCTI, the most popular European destinations for Australian travellers this year are:
the United Kingdom;
Italy;
France;
Spain;
Germany;
Greece;
Netherlands;
Switzerland;
Portugal; and
Croatia.
SCTI issues advice for Australians travelling to Europe
The insurer advised travellers to stay alert regarding their baggage and personal items. Claims for these items were the most frequent among Australian travellers to Europe last year, constituting 35% of all claims.
SCTI CEO Jo McCauley (pictured) highlighted the risks, saying: “European cities already have a reputation for pickpockets, and with events such as the Olympics happening this year, key locations are expected to be even busier than usual. Australian travellers must keep their wits about them, be mindful of opportunistic thieves looking to prey on unsuspecting tourists and ensure they’re adequately protected with comprehensive travel insurance, should the worst happen.”
The average cost of claims by Australian travellers in Europe in 2023 was $1,652.
“Common claims such as lost, stolen or damaged phones can put a real dampener on your
holiday and cause significant inconvenience,” she said. “We’re so reliant on our devices for travel – for payment, booking reservations, maps and so on – that we’re lost without them. However, there are a few things people should keep in mind, which could make claiming on your travel insurance easier should it ever happen to you.”
She offered advice for managing claims: “Firstly, lost or stolen items must be reported to the police as soon as possible so they can provide a written report which your insurance provider will need to pay your claim. For any device with phone capabilities, you’ll also need to contact your service provider and block the International Mobile Equipment Identity (IMEI) number. Your service provider can provide proof this has been done, which you will also likely need for a claim.
“Also bear in mind your insurer will want to know you have taken reasonable care of your item, especially when out in public. If you’ve left your handbag unattended in a café while you’ve gone to order a coffee and someone takes the opportunity to steal your bag, you may find yourself unable to claim for your losses. Therefore, it’s important to keep your property close by yourself or people you trust.”
Travel insurance claims from Australians travelling to Europe in 2023
In 2023, SCTI paid out over $2.5 million in claims to Australians travelling in Europe.
While baggage and personal items were the most common claims, medical and evacuation claims were the costliest. The three most expensive claims last year were:
a traveller in Germany who needed emergency heart surgery and repatriation, costing $155,000;
a traveller in Greece who required urgent medical care for a tumour, with a total claim of $85,000; and
another traveller in Greece who had a quad biking accident that necessitated air ambulance transport, resulting in a $72,605 claim.
McCauley stressed the importance of travel insurance, saying: “Many Australian travellers underestimate the potential financial risk associated with things going wrong overseas. From medical incidents to stolen property, costs can quickly add up. Investing in comprehensive travel insurance is a simple, yet crucial, step in safeguarding against these unforeseen expenses.”
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