nib Travel revamps insurance as young Australians fuel adventure travel boom

nib Travel revamps insurance as young Australians fuel adventure travel boom | Insurance Business Australia

Travel

nib Travel revamps insurance as young Australians fuel adventure travel boom

Features include enhanced coverage for high-risk activities

Travel

By
Roxanne Libatique

nib Travel Insurance will soon release a revamped suite of international insurance products, incorporating feedback from travel agents and responding to the changing travel habits of Australians, especially younger demographics.

Available starting Sept. 17, the new Product Disclosure Statement (PDS) and Financial Services Guide (FSG) include several key updates aimed at meeting the demands of modern travellers.

“At nib Travel, we are driven to continually evolve our product to ensure we are focused on the future,” he said, as reported by Travel Weekly.

Australians plan to engage in more adventurous travel

Recent industry data shows that 22% of Australians plan to engage in more adventurous travel, while 21% are looking for more active holidays. This trend is especially pronounced among younger travellers, who are leading the country’s post-pandemic return to international travel.

In response, nib has expanded its coverage to include activities like dogsledding, glacier walking, and the increasing use of e-scooters and e-bikes.

Key features of nib’s updated travel insurance products

nib Travel’s latest product updates aim to ensure comprehensive coverage for the growing number of young and adventurous travellers.

Cancellation and additional expenses

The policy now covers cancellations or deferments due to natural disasters or severe weather. Emergency travel and accommodation arrangements for attending the childbirth of a close relative are also included.

Additionally, Australian Defence Force personnel are covered if their pre-arranged leave is cancelled.

Stopovers

Travellers are now required to list stopover destinations only if the stopover exceeds 72 hours, a change from the previous 24-hour rule.

Activities

Coverage has been clarified and expanded to include activities such as hiking below 6,000 metres, riding e-scooters or e-bikes with helmets, and participating in guided tours on quad bikes or all-terrain vehicles (ATVs).

Ice-skating, dog-sledding, and glacier walking are also now covered without requiring a separate snow sports option.

Cruise and travel delays

Coverage for river and ocean cruises – both within Australian and international waters – has been clarified. The product also offers more specific coverage for travel delays resulting from cancellations or schedule changes.

Close relative definition

The definition of “close relative” has been broadened to include uncles, aunts, and legal guardians, allowing more flexibility for emergency-related coverage.

These updates reflect the increasing demand for flexibility and comprehensive coverage as more young Australians return to international travel.

According to the report, 40% of Australians travelled overseas in the past year, with 49% of respondents aged 18 to 29 taking an international trip. In comparison, just 23% of respondents over the age of 70 had travelled abroad.

While younger Australians are more eager to travel post-pandemic, the report highlighted a concerning trend: many are not purchasing travel insurance.

Around 30% of travellers aged 18 to 29 did not have insurance on their most recent trip, leaving them at risk for high medical costs or other financial issues that could arise during their travels.

Natalie Smith, head travel expert at 1Cover, warned that even short trips could lead to significant out-of-pocket expenses in the event of a medical emergency or unexpected cancellations.

With more young Australians seeking adventurous travel, nib Travel’s product refresh is positioned to address this insurance gap by expanding coverage for higher-risk activities.

Wilkinson emphasised that the company’s updated product suite provides the necessary protections for those increasingly opting for adventurous or active holidays.

“With the upward trend in active and adventurous travel, we have addressed some key areas of the product,” he said.

Travellers can access the updated PDS and FSG through nib’s website and partner portal.

nib Travel revamps insurance as young Australians fuel adventure travel boom