Climate concerns and global conflicts are pushing Aussie travellers to play it safe. In a recent study commissioned by Southern Cross Travel Insurance (SCTI), two in three (65 per cent) respondents said they now see travel insurance as even more vital due to unpredictable weather and natural disasters.
The Future of Travel 2025 report revealed that younger Aussies feel this more acutely, with nearly three in four (71 per cent) Gen Z and Millennials backing the statement, compared to three in five (57 per cent) Baby Boomers.
Interestingly, as climate change accelerates, SCTI reports that heat stroke claims have nearly doubled in just six years heading into 2025.
SCTI CEO Jo McCauley says the shift in attitudes is understandable, with natural disasters and unexpected events becoming more frequent.
“SCTI has seen a 16% increase in disruption to travel caused by natural disasters or severe weather events since 2018, and this year so far, we have already experienced 9% of 2024’s catastrophic claims. This is due to the devastating earthquake in Vanuatu,” McCauley says.
“We’ve also seen an 96% increase in heat stroke claims in 2024 when compared to 2018. These tends to be in located in Central Europe and impact older travellers who are holidaying for longer.
“Turbulence has been a significant issue for travellers as well, with SCTI paying more than $25,000 on turbulence-related claims since 2023, with 46% coming from the Asia region.”
Adding to this, a significant three-quarters (70 per cent) of those polled reported feeling less secure because of the current global political climate – a trend that’s also pushing insurance uptake.
“This is reflected in our customer data, with a 43% increase in Australians impacted by world conflicts in 2024 compared to 2018,” McCauley remarks.
“Last year, 33 Aussies were affected in significant events like riots in New Caledonia and the Gaza War, while 23 were impacted in 2018.”
While these numbers may seem small, they’re nonetheless giving more and more Australians pause for thought when it comes to preparing for travel.
Greater awareness
“The modern world is more connected than ever, with advances in technology and travel bringing people, interests and issues together,” the SCTI boss states.
“However, with this added awareness comes heightened concern – and we’re seeing travellers exhibiting greater caution due to the increased uncertainty that climate change and global conflicts present.”
And for travel advisors, it’s a timely reminder that insurance isn’t just a formality – it’s top of mind for many clients.
Conducted by YouGov, the Future of Travel 2025 study surveyed more than 1,000 adult Australians.
Last month, SCTI revealed the 10 largest travel insurance claims by overseas Australians in 2024, with one claim alone costing more than $672,000.
