Zurich Insurance Group (Zurich) has solidified its position as a major player in the travel insurance industry with the US$600 million (over AU$925 million) acquisition of AIG’s global personal travel insurance business, including Travel Guard.
For Australian travel agents familiar with Cover-More, which Zurich acquired in 2017, this latest move signals a continuation of Zurich’s focus on growth in the sector.
Here’s what this means for agents and the industry.
What’s changing
The acquisition combines Travel Guard with Zurich’s existing travel insurance provider, Cover-More Group, under the new global corporate banner: Zurich Cover-More.
While the name and scale may be evolving, Zurich Cover-More’s local operations will continue to run under their existing brands in respective markets.
For Australian agents, this means Cover-More remains a key player, maintaining its identity and operations while now being part of a significantly larger global network.
“This acquisition significantly boosts our travel insurance capabilities and amplifies our global footprint,” Zurich CEO of Global Ventures Cara Morton said.
“By welcoming Travel Guard into Zurich Cover-More, we aim to deliver unmatched services and protection to our customers worldwide that go beyond traditional travel insurance and assistance.”
What stays the same for Aussie agents
For Australian agents, the day-to-day operations with Cover-More remain unchanged. The brand continues to serve the market as it has since Zurich’s initial acquisition in 2017.
Zurich Cover-More is focused on leveraging Travel Guard’s strengths to expand its global reach and capabilities, but this doesn’t appear to involve changes to how Cover-More engages locally.
Importantly, the acquisition reflects a strategic global consolidation rather than a fundamental shift in how these services operate in Australia.
Zurich’s approach prioritises stability in local markets while integrating global assets to improve its overall offering.
Why this matters for the travel industry
The acquisition positions Zurich Cover-More as a stronger competitor in the global travel insurance market. Travel Guard’s integration adds significant scale, bringing Zurich’s total customer base to over 20 million annually and strengthening its long-term partnerships with more than 200 distribution partners worldwide.
The company is also shifting the Zurich Cover-More headquarters to the U.S., reflecting a strategic focus on the North American market. This shift could bring operational efficiencies and potentially influence product innovation and service delivery in global markets, including Australia.
What to watch
- Local continuity: Cover-More continues to operate as usual in Australia, maintaining its established presence and offerings. This ensures stability for agents working with the brand.
- Global growth: The expanded network under Zurich Cover-More provides access to greater resources and expertise, which could translate into stronger service offerings in the future.
- Industry consolidation: Zurich’s move reflects a broader trend of consolidation in the travel insurance market, as large players look to strengthen their positions globally.
A long-term play
Zurich’s acquisition is part of a broader strategy to build resilience and growth in its travel insurance business, especially as the market recovers from the pandemic. The deal has already received all necessary regulatory approvals and impacted Zurich’s Swiss Solvency Test (SST) ratio by 5 percentage points—a calculated investment in its future competitiveness.
While the immediate impact for Australian agents is limited, this acquisition may shape the market in the long run, with Zurich Cover-More better positioned to respond to global travel trends and risks.
Cover-More recently introduced Cancellation Plus, a travel insurance add-on designed to address the evolving needs of travellers seeking greater flexibility and peace of mind. This product allows customers to cancel their trips for reasons that might not typically be covered under standard policies, such as changes in personal circumstances. While it doesn’t cover cancellations for “change of mind,” it significantly broadens the range of protected scenarios compared to traditional policies.
This add-on is part of Cover-More’s broader effort to offer more tailored and customer-focused products, reflecting shifts in traveller behaviour post-pandemic. For travel professionals, Cancellation Plus offers a potential value-add for clients looking for more comprehensive trip protection.
