Allianz Partners Highlights the Risks of Travelling Uninsured

The study, conducted by Quantum Market Research and involving 1,001 respondents, delved into the motivations behind the decision to travel uninsured. Among those who travelled overseas without insurance, 65% had contemplated purchasing coverage but ultimately decided against it. The primary reasons cited included beliefs that their destination was safe (31%), perceptions that insurance was poor value (27%), and confidence in handling emergencies independently (22%).

Damien Arthur, Executive Head of Travel at Allianz Partners Australia, expressed concern over these findings. He emphasised that the perceived safety of a destination does not eliminate the potential for unforeseen incidents such as accidents, medical emergencies, or travel disruptions, all of which can result in significant financial burdens if travellers are uninsured.

The research also highlighted demographic disparities in insurance uptake. Travellers under the age of 30 and those born overseas were significantly more likely to forgo travel insurance, with 23% of both groups reporting they did not purchase coverage for their most recent trip. Additionally, individuals travelling to visit friends or relatives, or returning to their home country, often skipped insurance, frequently citing the short duration of their trips or familiarity with the destination as justifications.

Arthur underscored the unpredictability of travel mishaps, noting that even in destinations considered safe, medical emergencies can lead to substantial expenses. He shared an example of a traveller who incurred tens of thousands of dollars in costs due to hospital care, extended accommodation, and repatriation following an unexpected illness in Japan.

In light of these insights, Allianz Partners is advocating for a shift in perspective among Australian travellers. The company stresses that travel insurance is not merely an optional add-on but a crucial safeguard against the myriad of risks associated with international travel. By securing appropriate coverage, travellers can ensure peace of mind and financial protection, allowing them to fully enjoy their journeys without undue worry.