Strong demand for domestic cruises underscore need for travel insurance
Strong demand for domestic cruises underscore need for travel insurance | Insurance Business New Zealand
Travel
Strong demand for domestic cruises underscore need for travel insurance
Demand peaked amongst younger Kiwis
Travel
By
Kenneth Araullo
With cruise liners returning in numbers and conducting their business Kiwi waters, new research revealed that more New Zealanders are considering domestic cruises as an appealing getaway.
A new study from Southern Cross Travel Insurance (SCTI) revealed that 12% of New Zealanders are planning to go on a domestic cruise in the next 12 months, with demand particularly high amongst the aged 18-to-34 demographic.
“We’re now offering a cruise add-on to our popular domestic travel insurance policy, which was first launched in August 2020 to support travellers during the pandemic. Now that the cruising industry is well and truly bouncing back, we’re responding to customer demand for cruise cover when travelling around the motu,” SCTI CEO Jo McCauley said.
While investigating the best way to meet their requirements, customers told the insurer that they wanted to purchase coverage due to increased travel disruptions, to protect their investment in the trip, secure their valuable belongings, and because they had obtained a good deal.
“We’ve responded by extending our domestic travel insurance benefits to customers travelling on cruises to cover disrupted travel outside of their control to join a ship, and falling ill or being injured before they depart,” McCauley said.
Claims figures for domestic travel insurance
In the past 12 months, Southern Cross has paid out over $700,000 in claims for domestic travel insurance, with the highest claim being $11,000 when a customer was injured while hiking and had to cancel the rest of their pre-planned itinerary for a family trip.
As some domestic cruises cost tens of thousands of dollars, McCauley said that cruise cover is a worthwhile investment but urged travellers to be aware of what their insurance covers and does not cover.
“There are significant costs associated with domestic cruises, and missing a departure was identified in our research as a key customer concern,” she said. “Many of us have seen TikTok videos of travellers running alongside a cruise ship departing without them, but it’s important to remember you will only be covered if the incident is unexpected. Missing the boat because you’ve simply spent too much time enjoying the sights of Lyttelton or Mount Maunganui isn’t something your travel insurance can cover.”
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