Demand for international travel insurance surges as Kiwis prepare to travel

Demand for international travel insurance steadily rose last month, while domestic dropped, according to insurance company Tower. Photo / Michael Craig

As Covid-19 border restrictions relax in New Zealand and abroad, Kiwis seem ready to travel as soon as possible according to a surge in demand for international travel insurance.

After Fiji recently announced plans to relax entry requirements on April 7, Southern Cross saw policy sales to the tropical destination increase 2000 per cent month-on-month.

Travellers weren't waiting around either, with a large portion of the trips booked for the upcoming Easter holidays.

According to CEO, Jo McCauley, Fiji isn't the only place Kiwis are preparing to fly to.

"There's clearly a huge appetite amongst Kiwis to spread their wings," said McCauley, who said sales for international travel insurance policies increased 288 per cent in March compared to February.

Other popular destinations included USA and the UK, with sales up more than 300 and 240 per cent respectively.

Similarly, many of these trips aren't booked years or many months ahead but for Easter or winter holidays.

Tower Insurance also reported not only an increase in international travel insurance policies during March but a significant drop in domestic.

In February, 32.2 per cent of travel insurance policies were domestic and 13.74 per cent were for Australia.

However, the following month, Australia was at 18.99 per cent while New Zealand fell more than half, to 14.24 per cent. Policies for cover in Fiji, the UK and the US also rose.

Given the change in border rules, it's no surprise interest in international travel (and thus, travel insurance) has changed as well. Especially for previously popular destinations such as Fiji, Australia and the UK.

These numbers also align with news of significant delays in passport renewals. The average processing time has increased from 10 days to 21 days as an overwhelming number of Kiwis apply to renew expired passports, likely in anticipation of travel.

In the wake of Covid-19, many companies have added Covid-19 policies or packages to cover pandemic-related costs. However, not all Covid-19 cover is alike and it's important to check the fine print before purchasing travel insurance.