As travel rebounds, Australians are embracing new destinations while becoming more conscious of risk. Recent research from the Australian travel insurance market shows that health concerns, natural disasters and political instability are now key factors influencing where Australians choose to holiday.
Cost pressures also remain a major factor with many travellers cutting back on discretionary spending while travelling. Despite these pressures, some Australians still travel without insurance. Around fourteen percent admitted they went overseas without cover in recent surveys.
Rising costs of travel claims
Data from Southern Cross Travel Insurance highlights how medical emergencies overseas can lead to extremely large claims.
One case involved a traveller who suffered a stroke while holidaying in Europe. The emergency air ambulance alone exceeded A$500,000 and the total claim reached more than $670,000. Another claim involving serious respiratory complications in Thailand resulted in costs of over $360,000 once hospital treatment and evacuation were included.
These examples demonstrate how quickly overseas medical treatment and evacuation costs can escalate without adequate insurance cover.
High value claims across popular destinations
Australians travelling to Europe and the United States are also generating significant claims. Data from 1Cover Travel Insurance shows hospital stays in Switzerland and Italy have exceeded A$100,000 in several recent cases.
The United States continues to produce some of the highest claim values globally. Several recent incidents in Hawaii exceeded $1 million once intensive care treatment and emergency repatriation were included.
Travel risk concerns shaping holiday decisions
Australians are becoming more cautious about where they travel. Surveys highlighted by Smartraveller indicate that health risks, natural disasters and political instability are among the leading concerns when choosing destinations.
Travellers are also increasingly worried about losing luggage, illness while overseas and unexpected travel disruptions. Combined with cost of living pressures at home, these concerns are reshaping how Australians plan their holidays.
Why travel insurance matters in 2026
High value claims and rising global risks highlight the importance of comprehensive travel insurance that includes strong medical cover, emergency evacuation and trip disruption protection.
Even domestic trips can result in substantial claims. Recent cases have included travellers cancelling holidays due to illness and rental vehicle accidents involving wildlife. These incidents demonstrate that unexpected events can happen anywhere.
Before planning your next trip, review official travel advice through Smartraveller and ensure your insurance policy provides the protection you need.
For advice on travel insurance tailored to your circumstances, speak with a specialist at PSC Insurance Brokers. With access to local and global insurance markets, PSC brokers help businesses and individuals structure insurance solutions that protect assets, liabilities and people from emerging risks.
